Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Aldi

Opportunities

Is Kohl’s Making Money?

Kohl’s is partnering with other brands for survival. To explain, Kohl’s business is being taken by a massive retail platform known as Amazon.com.

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Grocery Wars

Why Aldi is America’s most Disruptive Grocer

Aldi is positioning itself to cash in on America’s growing income inequality and increasing wage stagnation. Specifically, Aldi is the perfect shopping experience for an increasingly cash-strapped middle class. Indeed, Pew Research estimates middle-class Americans’ purchasing power in 2016 had not grown in over 40 years.

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Grocery Wars

Why Sprouts (SFM) cannot survive

Sprouts’ dilemma is that Amazon is just one of its competitors. Besides Amazon sprouts has to compete with Kroger (NYSE: KR), Walmart (NYSE: WMT), Aldi, and Target (NYSE: TGT) to name just a few.

For example, Kroger has a close relationship with Instacart and it is America’s largest organic grocer. For example, Kroger sold $1 billion worth of organic produce in 2017, Progressive Grocer estimates. In addition, Kroger sold $2 billion worth of its Simple Truth organic grand in 2017, Progressive Grocer calculates.

Under those circumstances, I cannot see how Sprouts can compete and survive as an independent company. Instead, Sprouts’ future will be as part of a larger organization – such as Aldi Nord or Kroger.

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The Death SpiralThe Junk Pile

Is Office Depot Making Money?

Like Barnes & Noble (NYSE: BKS), Office Depot is one of those brands that is no longer supposed to exist but somehow keeps hanging on. It seems to generate just enough money to cover expenses and little else.

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Grocery Wars

Seven Threats to Costco

The available data indicates major changes in American lifestyles that bode ill for Costco. Statistics show that younger Americans are less likely to have a driver’s license, cook; data shows that Americans now spend more at restaurants than grocery stores, and are less likely to own a home (only 62.9% of Americans owned a home in 2016 the lowest level since 1965, Bloomberg reported). Costco’s business model is built upon the assumption that Americans will own and use a car; make most of their food purchases at a grocery store, and require home-maintenance supplies.

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Grocery Wars

Dollar General is Bigger than Sears

A milestone has been reached in the world of American retail; Dollar General’s (NYSE: DG) sales are greater than those of Sears Holdings (NASDAQ: SHLD).

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Grocery Wars

Ten Threats to Dollar General (and Dollar Tree)

The conventional wisdom is that Dollar General is “Amazon Proof,” but conventional wisdom is often dead wrong about the Everything Store.

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Grocery Wars

Will Rite Aid Survive without Walgreens?

Between February 2016 and February 2017, Rite Aid’s revenues increased by $2.11 billion. The revenues rose from $30.74 billion in 2016 to $32.85 billion in 2017. There’s a lot of cash flowing through Rite Aid that might make somebody a lot of money if he can figure out how to capture it.

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Grocery Wars

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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