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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (14685)	8/29/2002 11:50:53 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 78740

KR: Started today, toe in the water @17.63. THESIS: The battle to focus on isn't WMT vs Kroger, it's KR vs independents where it's taking share with decent [for grocery biz] margins due to buying power. Key issue with grocers is local [vs national] dominance...Logistics and ad costs locally drive economies of scale and in KR's case are enhanced by being the nations largest food retailer. KR is top dog [1 or 2] in many of the markets it chooses to compete in...and has abandoned those where it couldn't be a top dog. I'm not so sure WMT's non-food logistics translate to food...toys don't rot in 5 days, lettuce does. The above is tentative hypothesis, not something I got on stone tablets from a mountain somewhere, so take it FWIW....and as usual, contrary discussion welcome.