<p> Kroger has been on a roll lately, with <B>solid quarterly results</b> and <B>strong growth</b> in its product portfolio. However, amid recent news of strong competitors like Wal-Mart entering into the organic space and Whole Foods feeling the heat from increasing rivalry, how well can Kroger keep up?<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> For starters, <B>shares are up 17% year to date</b>, according to Motley Fool, and its recent quarterly results have been strong. Net earnings for the fourth quarter totaled <B>$421.9 million</b>, while identical supermarket sales grew <B>4.3 percent</b>. Kroger’s strong financial performance is due to its Customer 1st strategy, which Kroger’s CEO, Rodney McMullen, says is “a powerful foundation on which to continue growing.” Could Kroger’s customer-centric strategy be the key difference in separating itself from the competitors? As more supermarkets start competing directly with Whole Foods in organics, customer-perception appears to be one of the cornerstones of this rivalry.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Moreover, Kroger’s product portfolio has also been expanding rapidly. Michael L. Ellis, Kroger’s President and COO, said that the company has introduced <B>937 new products</b> in fiscal 2013 and 100 new Simple Truth items. Meanwhile, there’s also the Harris Teeter acquisition and Harris Teeter’s subsequent price cuts, which will prove to be strong prospects moving forward as Kroger expands its network of stores.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> As for the competition, Whole Foods is continuing its series of expansion with nine new store leases and remains steadfast in spite of the increased competition. John Mackey, Co-Founder and Co-CEO of Whole Foods says that the company is confident in its ability to gain market share and expects sales to approach <B>$25 billion</b> over the next five years. Since Wal-Mart’s customers overlap the least with Whole Foods, there might be little to worry about with that rivalry, but can the same be said for Kroger and Wal-Mart? It’ll be interesting to see how those two retailers match up moving forward in the organic space.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> All things considered, Kroger is looking to be in <B>top shape</b> against both Whole Foods and Wal-Mart. I think Kroger is making the right moves by capitalizing on organic foods and making key strategic acquisitions that will help position itself against Whole Foods similar expansion plans. Still, I can’t help but wonder how Kroger will perform as competition continues to heat up. Only time will tell. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://ir.kroger.com/corporateprofile.aspx?iid=4004136" target="_new"> Kroger </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
