Saturday, May 6, 2017

Kroger slows pace of new stores, analysts cite over-stored market

Kroger's plans for this year include a 35% reduction in new store development, expansions and relocations as compared to last year, according to a company filing with the SEC. Kroger has 55 projects planned for 2017, while last year it had 85.

In addition, Kroger's cap-ex plans for the year include 175 major remodels plus investments in digital and technology.

"Capital expenditures in 2017 will be focused on sales-generating initiatives, remodels, upgrades to our logistics network and merchandising systems, and digital and technology initiatives," said EVP and CFO Michael Schlotman.

The cutback in new store development is no surprise, as many analysts see the industry as over-stored. Walmart, Whole Foods and Sprouts Farmers Market have also cutback new store development.

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