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Kroger is known to be the biggest supermarket operator in the USA. The company reported a much better quarterly profit, which exceeds the expectation of Wall Street. Aside from that, Kroger also adjusted their profit forecast for the year. The positive results of Kroger is said to be primarily due to its Harris Teeter Supermarkets Inc.’s acquisition.
Kroger is known to be a big company that owns Vitacost.com, Smith’s, Ralphs and Food 4 Less grocery chains. Now, it also owns the Harris Teeter Supermarkets. The company now rose by 5 percent in the premarket trading.
The acquisition of Harris Teeter Supermarkets was completed in the month of January 2014. This acquisition bring more than 200 supermarket stores to Kroger. Most of these 200 supermarkets are in the southeastern part of the United States. The acquisition closed at $2.5 billion deal.
On the other hand, just this month of August 2014, Kroger also acquired the online company Vitacost.com at a deal of $280 million.
Considering how well the Kroger performs in the market, it is undeniably considered to be among the top performers in the industry of the hyper-competitive US supermarkets. It is also anticipated that Kroger will continue to perform well in the next years.
