The latest update on the grocery wars is here, with Walmart and Costco gaining ground

Impact · against what's priced in

The structural shift of Costco overtaking Kroger in food and beverage dollar share provides a potential catalyst for COST and a valuation headwind for KR, as the market currently ignores Costco's ability to accelerate growth. Conversely, Walmart's market share gains and impending transport cost headwinds are largely absorbed by a price that already anticipates consumer weakness and margin pressure.

KR−0.40

Challenges what's priced in

The price assumes