Kroger sells its convenience stores for $2.15 billion

Grocery giant Kroger has agreed to sell its 784 convenience stores, including brands like Kwik Shops, to UK-based EG Group, whose backers include TD Capital, for $2.15 billion.

Why it matters: This is part of a broader Kroger revamp initiative to fend off growing rivals like Walmart and Amazon/Whole Foods, and comes shortly after reports that it could be working on some sort of partnership with Alibaba.

Bottom line: “It is too bad that Kroger gave in to activist pressures to sell the convenience stores because they are very good money-makers and offer very good tie-ins with the Kroger stores with their fuel programs, as well as having a tremendous multiplier effect as convenience-and-gas is one of the hottest and most successful formats in the country." — Burt Flickinger (Strategic Resource Group), via Supermarket News