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Kroger Is a Safety Stock That Can Withstand Inflation, Jim Cramer Says

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  • Grocery retailer Kroger is maintaining its position as a strong performer as competitors struggle with inflationary pressures, Cramer said.
  • "We've got the worst inflation in decades, which is bad news for the whole industry except Kroger, which we know is coping just fine with inflation," the "Mad Money" host said.

Grocery retailer Kroger is maintaining its position as a strong performer as competitors struggle with inflationary pressures, CNBC's Jim Cramer said Monday.

"We've got the worst inflation in decades, which is bad news for the whole industry except Kroger, which we know is coping just fine with inflation and even has expanding gross margins," the "Mad Money" host said.

"We know Kroger's safe because they're doing great right now, and if the Fed tightens too aggressively, causing an actual recession, this stock will only get more attractive because it's exactly what money managers like to own when they're worried about a real slowdown," he added.

Cramer's comments come after the Federal Reserve raised interest rates by a quarter-percentage point on March 16, spurring a market rally. Chair Jerome Powell said Monday the Fed could implement more aggressive interest rate hikes for the rest of the year to combat inflation, leading stocks to fall in a volatile trading session.

Kroger stock fell 0.25% on Monday. The grocery chain, which saw a boost during the pandemic as consumers turned to at-home cooking, forecast annual same-store sales and profit above Wall Street expectations in its most recent quarterly earnings report. Kroger's same-store sales, minus fuel, increased 4% in the fourth quarter.

Cramer attributed Kroger's recent success to the company's large-scale and omnichannel business that allowed it to build out a strong digital presence as more customers turn to delivery and pick-up options. The host also highlighted the company's high-profile partnerships, including with Starbucks and DoorDash

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