Kroger knows what's wrong with its stores

While it's a giant player in the grocery space, Kroger lacks the buying power of bigger rivals Amazon and Walmart. You can add Costco to that list as well because its limited product selection magnifies its leverage with retailers. Unlike Kroger, Walmart and Amazon have other businesses, from advertising and memberships to general merchandise, that can benefit when they attract a grocery customer. And unlike Walmart, Amazon, and Costco, Kroger actually needs to make money from selling groceries. It's not using those items as a loss leader to sell other things or memberships. That's the retailer's core business. Kroger, however, does have one advantage — its proximity to its customers.