Kroger’s Strategic Pivot: Prioritizing Profit Over Automation in E-Commerce

In a decisive shift for its digital operations, Kroger is realigning its online business strategy, choosing to emphasize profitability over the pursuit of maximum automation. This strategic overhaul, which involves the closure of several specialized fulfillment centers, is projected to yield savings in the high hundreds of millions of dollars this year. The central question for investors is whether this recalibration can strengthen the retailer’s standing within the fiercely competitive grocery sector.

Despite the significant operational changes underway, Kroger’s commitment to shareholder returns remains steadfast. The company’s board recently declared a quarterly cash dividend of $0.35 per share. This payment is scheduled for March 1 to shareholders of record as Read more...