Supply Chain Research

Kroger, the retailer and grocer, reported a 5% growth in first quarter revenues and beat analysts’ expectations by 2%. Yet, the stock fell 19% in response to management’s weaker-than-expected outlook. Falling prices are clearly an issue. The company’s imports increased 17% on a year earlier in volume terms in the three months to May 31, Panjiva data shows. The increase in imports also resulted in a 10% rise in the value of inventories. The remainder will be sales at a lower price. There have also probably been shifts in the company’s supply chain. Imports from China and Hong Kong increas...