Kroger Takes $2.6 Billion Hit as It Shifts Grocery Delivery to Third Parties

Overview

• Kroger said it will close three e-commerce fulfillment sites as it redirects delivery to outside partners.
• The company recorded a $2.6 billion impairment tied to prior investments in its online infrastructure.
• Delivery will rely more on Instacart, with additional coverage from DoorDash and Uber.
• The stock initially sold off on the news before reversing to finish roughly 2% higher that session.
• Jim Cramer backed the move as smart and described the pullback as a buying opportunity after offering mixed views on the stock earlier this year.