CNBC Mad Money's Jim Cramer On Kroger


Thu. November 29th, 2012

<p>By ANUK Staff<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">While supermarkets have been dealing with the tough economy, CNBC Mad Money's Jim Cramer reports, that some are executing much better than others with Kroger leading the way.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">"In the supermarket space, the one company that's managed to buck the overall negative trend has been Kroger," said Cramer. Cramer compares the price action in Kroger versus two of its competitors Supervalu and Safeway, Cramer said there's no comparison. Cramers' stats report that Supervalu has slipped 67% for the year and Safeway is down 21%. For the year, Kroger has gained 3%.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><object id="cnbcplayer" height="380" width="500" classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,0,0" > <param name="type" value="application/x-shockwave-flash" /> <param name="allowfullscreen" value="true" /> <param name="allowscriptaccess" value="always" /> <param name="quality" value="best" /> <param name="scale" value="noscale" /> <param name="wmode" value="transparent" /> <param name="bgcolor" value="#000000" /> <param name="salign" value="lt" /> <param name="flashVars" value="startTime=000" /> <param name="flashVars" value="endTime=000" /> <param name="movie" value="http://plus.cnbc.com/rssvideosearch/action/player/id/3000131943/code/cnbcplayershare" /> <embed name="cnbcplayer" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer" allowfullscreen="true" allowscriptaccess="always" bgcolor="#000000" height="380" width="500" quality="best" wmode="transparent" scale="noscale" salign="lt" src="http://plus.cnbc.com/rssvideosearch/action/player/id/3000131943/code/cnbcplayershare" type="application/x-shockwave-flash" /></embed></object><p>According to Cramer, Kroger's success can be attributed to its execution. Kroger made a smart move a decade ago, to cut prices aggressively in order to fend off rising competition from discount stores that include Wal-Mart. He also notes that Kroger has scale. Kroger is the second largest competitor in groceries behind Wal-Mart. In additon, Kroger sells gasoline at more than a thousand of its supermarkets.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">"These companies have razor-thin margins, they're facing cut-throat competition from both each other, as well as big box stores like Wal-Mart and Costco(COST), not to mention drugstores like CVS (CVS) and Walgreens (WAG). It's just a very tough business."<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Cramer also attributes Kroger's success to its excellent management noting that a company can transcend "...if the people in charge are making the right calls."<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.kroger.com/Pages/default.aspx" target="_new"> Kroger </a><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.cnbc.com/id/15838459" target="_new"> Mad Money</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">