Kroger hurt by Income Inequality and attacked by Jesse Jackson

Everybody should pay attention to what’s happening to Kroger because food deserts might be coming to their neighborhood soon.

The real problem is income inequality, people in many working-class neighborhoods; which are disproportionately minority, simply do not have the money to buy a lot of groceries.

The only way Kroger can make money is to operate markets in areas where it can sell expensive items like liquor and organic food. It is also ramping up delivery services which are more likely to serve affluent customers.
The reason for this is that middle and lower-class incomes are falling in the United States. When adjusted for inflation the average lower-class household income in the United States in 2000 was around $26,496 a year, by 2014 it had fallen to $24,074, Pew Research Center Data indicated. Lower-class families have $2,000 less to spend than they did less than 20 years ago.

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Whole Foods and Walmart Expand Online Grocery Delivery

The grocery delivery wars are heating up fast. Amazon (NASDAQ: AMZN) and Walmart (NYSE: WMT) have expanded their same-day efforts

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Shell Accepts Chase Pay at Gas Pumps

The Drive did not say whether Shell will start accepting other popular QR Code based solutions like Alipay and Walmart Pay at its stations. Chase needs to justify the $100 million it invested in mobile-wallet technology, the Drive reported. Unfortunately the Drive did not say what Shell stations will accept Chase Pay.

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How Long Can Proctor & Gamble Survive?

This means Proctor & Gamble is now in the midst of an experiment. The experiment is, can a brand be sustained without massive amounts of advertising. Nobody really knows the answer but the future of P&G is riding on the outcome. That makes Proctor & Gamble a far riskier investment than it was, because the value of its main assets; the brands, is either slowly disappearing or growing in the Age of Amazon.

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Walmart to Use Tencent Holdings’ WeChat Pay

News stories did not say whether WeChat Pay will be integrated with Walmart’s QR-code based payment app Walmart Pay. Walmart Pay is one of the fastest growing payment solutions in the United States.

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Kroger and Instacart rolling out Online Grocery Delivery Nationwide

One obvious possibility here is that Kroger is planning to buy Instacart. Such an acquisition is not farfetched; Kroger just sold its convenience stores for $2.1 billion which could finance an Instacart purchase. Target (NYSE: TGT); one of Kroger’s biggest competitors, has bought the shopping service Shipt and Walmart (NYSE: WMT) has plans to offer grocery delivery in 100 cities by the end of 2018.

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Will SuperValu Survive and Should Amazon buy it?

An interesting question here is should Amazon have bought Supervalu instead of Whole Foods? After all, SuperValu is a discounter like Amazon, and it services a general mass market rather than a select upper-class clientele.

SuperValu’s stable of private label grocery brands might have been a better fit for Amazon than Whole Foods’ line up. Grub Street reported that Whole Foods’ suppliers are in revolt against Amazon. That provides an opening for Kroger (NYSE: KR) or Walmart (NYSE: WMT) to poach some of Whole Foods’ suppliers.

An advantage that SuperValu would have brought to Amazon is a lineup of products directed at average middle and working-class customers the bulk of the consumer base. Another is a lot experience in the supermarket and grocery sphere and established stores in large metropolitan markets.

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Walmart wants to bring Grocery Delivery to 40% of Americans

Likely responses to Walmart’s offensive might be Amazon’s acquisition of a traditional grocer like Safeway or Winn-Dixie, or Amazon or Target partnering with traditional grocers such as Publix. Kroger might respond by buying InstaCart and joining Google Shopping Express.

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Will Amazon Go Kill Dollar Stores??

A true nightmare for dollar stores would be caught in the squeeze between Automated Walmart and Amazon Go. Dollar stores are already caught in the increasingly brutal crossfire between Amazon.com and Walmart.com.

The No-Man’s land between Automated Walmart and Amazon Go would be far worse. A true nightmare for dollar stores would be both retailers using their automated stores as neighborhood fulfillment centers for same-day delivery.

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Should Walmart buy Flipkart?

Buying into Flipkart was a smart move for Walmart. It also makes WMT a smart diversified investment in retail stocks.

These statistics are bleak for Walmart because they indicate a large percentage of its customers will have a lot less money to spend real soon. To make matters worse, an increasing number of them will be dying off.

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