Did the Albertson's IPO Affect Kroger Stock?

Kroger (NYSE: KR) stock has its fair share of challenges in past years amid competition from the likes of Walmart, Amazon, Target, and numerous local and regional grocery store competitors. Now, with Albertson's (NYSE: ACI) launching an IPO in late June, Kroger faces potential added competition as a consumer staples stock.

Albertson's move means Kroger will have another nationwide grocer competing for investors interested in this sector of the market. While it's still a little early yet to really gauge how this will affect Kroger stock, both Kroger's recent history and the Albertson's rollout as a public company might provide a little insight on where things are headed.

First, a little background. It's helpful to note that the companies competing as grocers nationally aren't all the same. Large grocers such as Amazon, Walmart, and Target actually derive most of their profits by selling non-grocery goods and services. Also, while smaller grocery chains such as Sprouts are publicly traded, Kroger was the only nationwide grocery-centric stock until recently.

Source Fool.com