Kroger's 4Q earnings reveal the grocer is reeling from attacks to its core business and digital expansion. Our previous Grocery sector analysis highlighted Kroger as particularly vulnerable to these threats. Today we use our text analytics platform to further explore these takeaways in the latest earnings sentiment.
In January our text analytics platform highlighted the disruption in the grocery sector, namely the increasing cost to stay relevant as digital-first competitors scale and e-commerce giants invest more in the business. That bill appears to be coming due for Kroger, which reported disappointing results and guidance on this morning's earnings call.
For our Deception Spotlight subscribers, risk to the Kroger outlook was also highlighted on February 12. Contact us if interested in learning more about our Deception Spotlight coverage.
At Amenity Analytics, we don't believe that the score alone tells the whole story, but it is one chapter of the story. In the case of Kroger, that chapter was the most negative in six quarters, registering an Amenity Score of 16 vs an average of 39 over the prior four quarters:
As we often find to be the case, Amenity’s deceptive language analysis shines a light on the key pain points facing the company. For Kroger, that includes competition in the core business and the cost to be relevant in digital:
As a category, grocery is not often considered a high growth business. So when e-commerce giants and digital-forward upstarts alike sound this positive, it is not surprising that Kroger is feeling the pinch:
Hello Fresh (3/6/19):
Sprouts Farmers Market (2/21/19):
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This communication does not represent investment advice. Transcript text provided by S&P Global Market Intelligence.
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