Kroger Made a Multiyear Mistake in How it Delivers its Groceries, Jefferies Says

Kroger was downgraded by Jefferies to hold from buy due to what it believes was a key mistake: investing in centralized fulfillment centers instead of micro-fulfillment.

Kroger should be following Walmart’s lead, Jefferies analyst Christopher Mandeville added in a note Thursday.

For a grocery store chain, capturing online shoppers and catching up to Amazon-owned Whole Foods is a tricky business. Companies are grappling with how to fulfill and deliver customers’ orders of fresh produce and groceries quickly and cheaply.

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