Steve Watkins of the Cincinnati Business Courier spoke with Ryan English about Kroger's plan to close 14 stores as it exits the Raleigh-Durham, N.C. market. Here is an excerpt from the story:
“With the store closure announcement, it appears Kroger has decided to focus on their Harris Teeter brand in the Raleigh-Durham market,” Ryan English, an investment manager at Sycamore Township-based investment advisory firm Foster & Motley, told the Courier.
“This move allows Kroger to reduce competition and eliminate underperforming stores. Kroger was probably facing a significant capital investment decision on improving these stores if they wanted them to be more competitive. Harris Teeter will likely make this investment for the stores they are acquiring.”
English said that the internal sale does have another implication.
"From a technical standpoint this is an internal transaction for Kroger and the stores will move from one subsidiary to another. However, from an operating perspective Kroger does run Harris Teeter a little differently," he said. "Harris Teeter has a lot more say and autonomy in how their business is run. At the time of acquisition Kroger felt it was important to keep Harris Teeter’s successful culture intact and run it truly as a separate entity. With the news today, it looks like that is still the plan."
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