Grocery retailer Kroger (KR) has signed a collaboration deal with intralogistics specialist KNAPP to help modernize its Great Lakes Distribution Center located in Delaware, Ohio.
The distribution facility opened in 2003 and serves 115 stores in Ohio, Michigan, and the Ohio River Valley region. The renovation will enhance its capabilities and expand the facility’s capacity by adding an additional 130,000 square feet. Kroger expects to complete the renovations in the summer.
“Kroger’s investment in KNAPP’s latest technology allows the Great Lakes Distribution Center to improve efficiency in replenishing our stores, enabling us to quickly deliver fresh food to our customers,” said Tony Lucchino, Vice President of Supply Chain and Network Strategy at Kroger.
The retailer says the Great Lakes facility expansion is part of the ongoing transformation of its supply chain network. It says the project will ensure it can grow with demand. Kroger has around 2,800 retail food stores that operate under a variety of brands. It serves more than nine million customers each day through its stores and digital platforms. (See Kroger stock chart on TipRanks).
In June, Northcoast analyst Chuck Cerankosky reiterated a Buy rating on Kroger stock and raised the price target to $46 from $41. Cerankosky’s new price target suggests 19.89% upside potential.
The analyst reaffirmed the bullish view on Kroger after the company delivered strong first-quarter results and raised 2021 guidance.
Consensus among analysts is a Hold based on 1 Buy, 10 Holds, and 5 Sells. The average Kroger price target of $37.93 implies that shares are fully priced at current levels, with 1.15% downside potential over the next 12 months.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in KR is currently Very Positive. The cumulative change in holdings across all 11 funds that were active in the last quarter was an increase of 16.9 million shares.
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