CNBC’s Jim Cramer said grocery retailer Kroger remains a strong performer as its competitors are suffering from inflationary pressures.
“The worst inflation in decades has happened, which is bad news for the industry as a whole, except for Kroger, who is dealing well with inflation and growing gross margins,” said Mad Money’s host. Said.
“Kroger knows it’s safe because it’s doing well right now. If the Fed tightens too aggressively and causes a real recession, this stock is owned when money managers are worried. It’s more attractive because it’s what you want. It’s a real slowdown. “
Kramer’s comment comes after the Federal Reserve has spurred market recovery after raising interest rates by a quarter percentage point on March 16. Chairman Jerome Powell said Monday that the Fed could raise rates more aggressively for the rest of the year to combat inflation, causing stocks to fall in volatile trading sessions.
Kroger shares fell 0.25% on Monday. The grocery chain, which saw a boost during the pandemic as consumers turned to home cooking, forecasts the same store’s sales and profits annually, exceeding Wall Street’s expectations in its latest quarterly earnings report. Kroger’s same-store sales minus fuel increased by 4% in the fourth quarter.
Cramer believes Kroger’s recent success is due to its large omni-channel business, which has enabled more customers to build a strong digital presence as more customers turn to delivery and pickup options. I am. The organizers also emphasized the company’s hottest partnerships, such as Starbucks and DoorDash.
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