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Risks
1. Food Safety: As a grocery and food retailer, Kroger is exposed to the risk of food-borne illness, product recalls, and food safety litigation if there is any lapse in safety standards.
2. Competition: Kroger faces stiff competition from larger national and regional grocery retailers, as well as online stores, discounters, and specialty stores.
3. Economic Uncertainty: Economic fluctuations, market swings, and changing consumer preferences can all affect Kroger’s financial performance and stock price.
4. Cybersecurity: As the second largest U.S. grocery retailer, Kroger is increasingly reliant on digital technology and online data systems, making them vulnerable to cyberattacks and data breaches.
5. Employee Relations: Kroger is subject to the risk of labor disputes and collective bargaining agreements with unionized labor. Changes in employment laws could also affect the company’s operations.