Kroger said Wednesday that it was considering a sale of its convenience stores amid fierce competition in the grocery business. Its shares jumped 5% in early trading after the news.
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Kroger surges after announcing it may sell its convenience-store business (KR)
Amazon is coming for the grocery industry.
"Considering the current premium multiples for convenience stores, we feel it is our obligation as a management team to undertake this review."
Kroger's shares have dropped 12% since mid-June when Amazon stunned the grocery industry with its acquisition of Whole Foods. The company reported an 8% drop in second-quarter profits after aggressive cost cuts aimed at overcoming competition from Walmart and other retailers.
Kroger said Wednesday it was unveiling a plan to revamp its stores, including bigger investments in ecommerce and more cost cuts.
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