SMIF member Grant Nissly ’16 pitched Kroger (KR) to the Student Managed Investment Fund (SMIF) on March 30, 2016. Kroger is the second largest U.S. food supermarket retailer and generates $110 billion in annual sales. Kroger operates primarily in the United States with stores in 34 states, primarily in the Midwest, West Coast, and South. KR current operates 3,923 stores. 2,778 of these stores are supermarkets in which 1,387 of the stores include fuel centers. Kroger also operates 781 convenience stores and 327 jewelry stores. Grant viewed Kroger’s current performance as an opportunity to purchase a large consumer staple. With large investments in new store technology and an aggressive acquisition strategy, Kroger appears poised to justify their high leverage structure with substantial future growth. The class cited concerns regarding the shifting competition in the market place and whether or not Kroger can execute their 2016 guidance. In the end, the class recognized Kroger as an opportunity to diversify our consumer staples sector and voted to pass Grant’s motion.