The Kroger Co. (KR), Safeway Inc. (SWY): Is This Grocery Stock Still a Buy?

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The Kroger Co. (NYSE:KR) has begun to sell more discretionary items in its Marketplace stores, but remains a grocery-focused business. If in fact Amazon launches its global grocery business in the next 16 months, Kroger could see a significant fundamental problem – much like what Amazon did to Best Buy Co., Inc. (NYSE:BBY).

Final Thoughts

Right now, as of this day, I still think The Kroger Co. (NYSE:KR) is a good investment opportunity. The stock is cheap and is increasing its margins and revenue. However, once Amazon launches its grocery service, investors will have to reassess their Kroger position.

In regards to Amazon, I like the stock. The potential for e-commerce is way beyond household appliances and books, and I think the addition of a $568 billion market could catapult Amazon to a new level.

Brian Nichols has no position in any stocks mentioned. The Motley Fool recommends Amazon.com (NASDAQ:AMZN). The Motley Fool owns shares of Amazon.com.

The article Is This Grocery Stock Still a Buy? originally appeared on Fool.com.

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