Kroger’s Margins and the Restock Kroger Initiative
As we saw in the previous part, Kroger’s (KR) fiscal 4Q18 gross margin fell 30 basis points, driven by higher investments in its Restock Kroger initiative and price investments. Management said during the fiscal 4Q18 earnings call that it will continue to make price investments to drive same-store sales growth. It also plans to accelerate spending under its Restock Kroger plan using the tax savings it will generate from the recent tax reforms.