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Kroger is a safety stock that can withstand inflation, says Jim Cramer.

Grocery retailer Kroger maintains its strong position as competitors grapple with inflationary pressures, CNBC’s Jim Cramer said Monday.

“We have the worst inflation in decades, which is bad news for the entire industry, with the exception of Kroger, which, as we know, copes well with inflation and even has an increasing gross margin,” said the Mad Money host.

“We know Kroger is safe because they are doing well right now, and if the Fed tightens too aggressively, resulting in a real recession, these stocks will only become more attractive, because this is exactly what money managers want to own. when they’re worried about a real slowdown,” he added.

Cramer’s comments came after the Federal Reserve raised interest rates by a quarter of a percentage point on March 16, sparking a market rally. Chairman Jerome Powell said on Monday that the Fed could make more aggressive interest rate hikes before the end of the year to fight inflation, which would send stocks tumbling into a volatile trading session.

Shares of Kroger fell 0.25% on Monday. The grocery store chain, which saw growth during the pandemic as consumers turned to cooking at home, forecasts year-on-year same-store sales and earnings above Wall Street’s expectations in its latest quarterly earnings report. Kroger same-store sales excluding fuel rose 4% in the fourth quarter.

Kramer attributed Kroger’s recent success to the company’s large-scale and multi-channel business, which has allowed it to build a strong digital presence as more customers turn to delivery and pickup options. The host also noted the company’s high-profile partnerships, including with Starbucks and DoorDash.

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