Kroger Co

In 2013, grocery stores accounted for 90% of the country’s food and beverage store sales, while supermarkets accounted for 95% of the total grocery store sales.

The Kroger Co. (KR) is the largest supermarket chain in the US by revenue, operating 2,625 supermarkets at the end of fiscal 2015, which ended January 31, 2015.

Kroger operates in several store formats, offering its customers the option to shop in its stores in-person or online for delivery or pickup.

Walmart’s (WMT) e-commerce business is slated to grow the fastest of all its channels, at 20%–30% per annum from fiscal 2016 to fiscal 2019. E-commerce sales were $12.2 billion in fiscal 2015, a growth rate of 22%.

Brick and mortar retail companies have high inventory levels and are very capital-intensive companies that require a significant amount of working capital and capital expenditure.

What starts as a competitive strategy for Wal-Mart may also affect the general level of grocery price inflation in the United States.

Despite its sales growth, the gross profit rate declined for Walmart’s US operations, consisting of the Walmart US and Sam’s Club segments.

Stock price movement affected Walmart’s stock performance. Walmart’s stock is only up by 8.8% since the start of 2014.

Walmart (WMT) has a mix of debt and equity in its capital structure. The retailer’s (XRT) total debt, both short and long-term, is ~$56.6 billion.

Walmart’s largest merchandising category is groceries. According to the USDA, Walmart was the largest seller of grocery items in the US in 2013.

Cross-docking is an inventory management system. Walmart made it popular. Cross-docking can lower the time required to transport merchandise.

Walmart (WMT) has been concentrating on expanding the store count of its larger supercenter format. A supercenter averages ~179,000 square feet in size.

Walmart’s Sam’s Club segment consists of membership-only club warehouse retail operations. Members include both business owners and individual consumers.