Is Chipotle Imploding?

An intriguing possibility would be for Kroger to acquire Chipotle. The supermarket giant could easily afford such as transaction, Chipotle had a market capitalization of $11.55 billion on March 17, 2017, and an enterprise value of $11.12 billion on December 31.

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Can Supervalu Survive??

Supervalu might be a good investment for Kroger; but it is certainly a lousy investment for anybody else with the possible exception of Safeway.

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Retail Apocalypse Scorecard: How Many Stores are Really Closing?

The most disturbing aspect of the retail apocalypse afflicting America is that nobody knows how many stores are really closing.

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Do Organic Grocers Make Money?

All this makes Whole Foods a very suspect investment even though its stock has done well. WFM investors received a return on equity of 13.69% on December 31. The company is scheduled to pay a 14¢ a share dividend on April 5, 2017. One has to wonder how much longer that can continue. Sprouts pays no dividend but its’ investors did receive a 16.07% return on equity on December 31, 2016.

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Can Kroger Keep Growing?

This service enables Kroger to reach groups that might avoid traditional grocery stores such as Millennials who do not own cars, and residents of fast growing urban areas far from suburban supermarkets. It also taps shoppers with more disposable income; who are more likely to order higher priced goods, which can compensate for food deflation.

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Walmart’s Price cuts should scare you to Death

All this indicates that there might be millions; perhaps tens of millions of Americans, that can no longer afford to shop at Walmart. That’s a pretty frightening situation and it bodes ill for a great many retailers and their vendors.

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Companies that Might Disappear in 2017

With the great retail die off heating off, many investors are wondering what companies will disappear next. Here is a list of companies in several industries that might vanish over the next year or so.

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Why are Walgreen and Rite Aid’s Revenues Dropping?

Rite Aid reported revenues of $32.64 billion in August 2016 that fell slightly to $32.57 billion in November 2016, Ycharts data indicated. During the same period in 2015, Rite Aid’s revenues grew by $1.46 billion; rising from $27.85 billion in August 2015 to $29.31 billion in November 2015.

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Retail Predictions for 2017

Amazon (NASDAQ: AMZN) will have another great year as it continues to vacuum up market share. The Everything Store’s revenues grew by $20.98 billion during the first three quarters of 2016; rising from $107.01 billion in December to $127.99 billion in September. If this continues Amazon’s revenue will surpass $130 billion for first quarter 2016 and could potentially exceed $150 billion by January 2018 wow!! This will make Amazon, America’s leading retailer and the dominant force in the business. Among other things it will accelerate the scramble to expand online we’re seeing on the part of other retailers.

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Is Amazon Really a Threat to Grocers?

My take is that the major grocers; and high-end grocers like Whole Foods, will survive but many of the regional and discount chains will not. Instead of being a direct threat to grocers, Amazon will be an indirect threat taking some business and providing another headache for grocers.

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