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Co. KR, which operates in the thin-margin grocery industry, has been undergoing a complete makeover not only with respect to products but also in terms of the way consumers prefer shopping grocery. This Cincinnati, OH-based company has been making significant investments to enhance product freshness and quality as well as expand digital capabilities and payment solutions. Impressively, management remains committed to double digital sales by 2023.Let’s Delve DeeperKroger has been adding new products to its portfolio and eyeing technological expansion. Its acquisition of meal kit company Home Chef and partnership with British online grocery delivery firm Ocado reinforces its position in the online ordering, automated fulfillment and home delivery space.We note that Kroger has been introducing new items under its “Our Brands” portfolio — launched 142 new items during the second quarter of fiscal 2021. It has also collaborated with ghost kitchen partner Kitchen United to provide consumers on-demand meal pickup and delivery from popular restaurants. Image Source: Zacks Investment Research Kroger is furthering its partnership with Instacart by launching the new ‘Kroger Delivery Now’ service that will provide customers with food and household staples in 30 minutes. It has launched sushi delivery pilot with DoorDash in three geographies. Moreover, it has introduced Kroger Delivery Savings Pass in Florida, offering customers unlimited delivery for $79 annually.Without doubt, Kroger’s digital business remains one of its key growth drivers. Customers have been opting e-commerce solutions for their grocery and other household essentials. Considering the current scenario, the company has been focusing on no-contact delivery option, low-contact pickup service and ship-to-home orders. It expanded to 2,239 Pickup locations and 2,546 Delivery locations. Moreover, it is expanding contactless payment solutions like Kroger Pay or “Scan, Bag, Go”.Digital sales surged 114% during the second quarter, on a two-year stacked basis. We note that Kroger added more than 340,000 new customers to its digital platforms during the quarter.Wrapping UpWe believe that Kroger’s focus on fresh offerings, technology and process improvements to lower costs, seamless digital ecosystem and margin-rich alternative profit business should continue contributing toward growth.Although the company continues to expect a decline in identical sales; we note that on a two-year stacked basis, its identical sales projection suggests 12.6-13.1% growth for fiscal 2021. Management expects full-year adjusted earnings per share in the range of $3.25 to $3.35, indicating a two-year CAGR of 22-24%.Shares of this Zacks Rank #1 (Strong Buy) company have rallied 28.5% so far this year compared with the industry’s growth of 1.7%.3 More Stocks You May Bet OnBJ's Wholesale Club BJ has a trailing four-quarter earnings surprise of 25.6%, on average. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Walmart WMT has a trailing four-quarter earnings surprise of 14.3%, on average. The stock carries a Zacks Rank #2 (Buy).Costco COST has a long-term earnings growth rate of 8.6%. It presently carries a Zacks Rank #2.5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report BJs Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment ResearchWeiter zum vollständigen Artikel bei "Zacks"