Kroger's shares fell about 7% as higher costs and theft cause shrinking margins

Kroger’s shares fell about 7% as higher costs and theft cause shrinking margins

September 14, 2021
Americas, Digital Supply Chain

This week, Kroger’s shares fell about 7%, and investors are worried about rising supply chain costs and shrinking profits. The deli, fresh produce, bakery and floral sections of the grocer see increased sales. That is because the shoppers are still cooking meals at home and stock carts with groceries. Despite that, Kroger is finding it tough to deal with inflation, rising warehouse plus transportation costs and theft. Earlier forecast of the grocer’s share was $2.95 to $3.10 per share. Kroger now anticipates earning $3.25 to $3.35 per share in the 2021 fiscal year. As an analyst at J.P. Morgan suggested, Kroger will raise 2-3% prices of grocery items to shift the costs to consumers.