Kroger (KR) Rise Midst a Meltdown
Kroger is performing exceptionally well during the middle of a meltdown in the stock market. As panic-buying for coronavirus related items rise throughout the nation. People go into many retail stores such as Kroger, Walmart, and Costco; and stock up on necessities. Many individuals are going into stores and seeing waves of empty shelves short of goods such as toilet paper, paper towels, and disinfectant wipes.
Kroger Co. along with many other stores are beginning to set limits on the number of sanitary goods that can be purchased in one trip. Shoppers are leaving many stores “empty-handed” because they are not able to acquire the necessities in preparation for the pandemic. Katrin Zimmermann, managing director TLGG Consulting, states that “A fair and equal distribution of goods is key to avoid devastating economic and societal consequences”. Zimmermann then explains how buying too much of one good can drive prices up leading to the promotion of black markets. When more money begins to be spent on the bare necessities and not enough disposable income, many businesses tend to collapse.
Kroger’s implementation of limiting the number of items that can be bought during this pandemic solves many issues within the economy. Kroger’s stock price is trading at $35.90 during pre-market hours. Kroger Co. is up +25.79% for the week, +20.47% for the month, and +46.05% the past year. Kroger continues to exceed expected quarterly earning for the previous four quarters, being a good leading retailer in setting examples for the safety of COVID-19.