Kroger (KR) fell short of Wall Street's second-quarter revenue expectations, citing a challenging environment for consumers as they face reduced federal benefits, inflation and higher interest rates.

"The strength and diversity of Kroger's business model is delivering consistent results in what remains a challenged environment,” Kroger CEO Rodney McMullen said in a statement. “By investing in price and providing more personalized offers, we are helping customers stretch their budgets and manage the ongoing effects of reduced government benefits, inflation and higher interest rates.”

For the quarter ended Aug. 12, Kroger reported $33.9 billion in sales, compared to $34.6 billion in the same period last year. The grocery store giant posted a net loss of $180 million, compared to a net gain of $731 million in the same year-ago period. Adjusted net earnings per share (EPS) rose 6.7% to 96 cents compared to the same year-ago period. 

The results included a $1.4 billion charge related to a nationwide opioid settlement framework, Kroger said.

Identical store sales, excluding fuel, increased 1% in the quarter. Digital sales increased 12%, driven by growth in both pickup and delivery service.

Kroger CFO Gary Millerchip said he expects the environment to remain difficult for shoppers and that inflation will continue to decelerate.

Planned merger with Albertsons 'on track'

"We therefore expect identical sales without fuel will be at the low end of our full-year guidance range and slightly negative in the second half of the year,” Millerchip said.

The company reaffirmed its full-year guidance, calling for identical sales without fuel  of 1% to 2%, adjusted net EPS of $4.45 to $4.60, and adjusted free cash flow of $2.5 billion to $2.7 billion.

The company also said that its proposed merger with rival Albertsons is on track to close in early 2024, pending regulatory approval. Hoping to satisfy antitrust regulatory concerns, the companies also announced an agreement to sell 413 stores, eight distribution centers and five private label brands to privately held C&S Wholesale Grocers.

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As cold and flu season nears, CVS, Walgreens, Kroger and many other retailers have begun offering incentives to consumers who get a flu shot at their pharmacies.

These deals come as news that overall healthcare costs are expected to ease somewhat due to several factors including an increase in outpatient care including telehealth and virtual clinic services.

If you’re looking to skip the doctor's office to get vaccinated, you might be able to give your wallet a boost as well by visiting one of these stores.

Where to get perks with that free flu shot

CVS will email a $5 coupon redeemable for qualifying purchases of at least $20 at CVS and Longs Drugs locations through Dec. 31.

Walgreens customers with myWalgreens memberships can earn a $10 in Walgreens Cash reward on their next in-store purchase of $1 or more through Dec. 31

Kroger customers will see a $10 off the next grocery purchase reward in their Shopper’s Card accounts through Dec. 1.

Shoppers at Albertsons or its subsidiary Safeway who spend at least $40 can pick up a 10% off your next grocery purchase reward on qualifying items up to $200 through Dec. 31.

Winn Dixie is offering up to $20 in free groceries to get vaccinated at its stores. Under the deal, customers can receive $10 off with a flu or COVID-19 vaccination and another $10 off with any other vaccine on the same day.

Hy-Vee shoppers can earn a 20-cent Hy-Vee Fuel Saver + Perks reward that can be redeemed at any Hy-Vee Fast & Free or Dollar Fresh Market fuel location.

Giant Eagle is offering $5 in free rewards that will be loaded to the customer’s Giant Eagle Advantage Card within 24 hours of vaccination against the flu, COVID-19, pneumonia or shingles.

According to a recent survey conducted by CVS, about two-thirds of Americans over the age of 18 are expected to get a flu shot this season, including an estimated 74% of seniors. Other findings reveal that 75% of people will get their shot before November and 42% are likely to visit a retail pharmacy for their shot.

Flu shots are often free under many insurance plans, so be sure to bring your insurance card, the store’s loyalty card if applicable, and confirm the deal with your local store. In some cases, state, age and health-related restrictions may apply.

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Kroger is getting into the holiday spirit with their Freshgiving for Everyone initiative. The national grocery chain is offering classic holiday meals for less than $4.85 per serving, making it possible to feed 10 people for under $50.

From budget-friendly turkey recipes to creative sides like Sweet Potato Stacks and hearty green bean casserole, Kroger has chosen ingredients that make holiday cooking simple and affordable. You can visit the website to plan your meal from start to finish with a deal in mind.

"Thanksgiving is such a special time of year, and we take pride in knowing exactly what is important to our customers during this holiday season," said Tom Duncan, Vice President, Head of Marketing at Kroger. "No matter how they choose to celebrate, we're happy to provide our customers with value on the items they need, want, and love this Thanksgiving."

Target is delivering the deals and making holiday meals more affordable than ever with its $20 Thanksgiving meal for this year.

This meal offer includes everything you need for a traditional Thanksgiving feast, featuring:

Good & Gather Premium Basted Young Turkey (Frozen) – Up to 10 lb.

Good & Gather Russet Potatoes – 5 lb.

Del Monte Cut Green Beans – 14.5 oz.

Campbell's Cream of Mushroom Soup – 10.5 oz.

Ocean Spray Jellied Cranberry Sauce – 14 oz.

Stove Top Turkey Stuffing Mix – 6 oz.

Heinz Home Style Roasted Turkey Gravy – 12 oz.

If you’re planning to host a larger gathering, this meal can easily be doubled to serve eight for just $40. Target offers plenty of ways to help you celebrate, with pies, desserts, and creative side dishes available for under $5.

Target is also helping shoppers save on turkeys, pricing them at just $.79 cents per pound, 20% less than last year. With nearly 700 new food, beverage, and entertaining items available this season, Target has everything you need to create a memorable holiday meal.

Walmart’s inflation-free Thanksgiving meal, available now through December 24. This affordable feast serves up to eight people for less than $7 per person, offering savings without sacrificing quality or taste.

This year’s Thanksgiving meal includes 29 holiday favorites, from a Whole Frozen Turkey (just $0.88/lb.) to Great Value Sweet Hawaiian Rolls, and even desserts like Marie Callender’s Southern Pecan Pie and Great Value Pumpkin Pie with whipped topping. All the essentials are covered, from savory to sweet.

Walmart is also making it easy to share the holiday spirit.

Customers can:

- Donate a full Thanksgiving meal to their local Salvation Army unit through Walmart.com/thanksgiving.

- Round up online purchases to support the Salvation Army.

- For an extra special touch, customers can send a Thanksgiving meal directly to friends or family anywhere in the country. Whether it’s for someone across town or across the country, Walmart helps you and your family share in the joy of the season.

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Warren Buffett once again was a net seller of equities in the fourth quarter, slicing, slashing and outright exiting stakes across a series of sectors that have fallen out of his favor. But the Oracle of Omaha did pull off a few interesting buys in Q4, too.

The chairman and CEO of Berkshire Hathaway (BRK.B) continued to pull back on bets in the financial and healthcare sectors, with a particular focus on ridding himself of positions in the pharmaceuticals industry.

On the other side of the ledger, Buffett made incremental additions to holdings with exposure to the housing market, upped a major energy sector bet in a big way, backed another initial public offering (IPO) and even got behind an international motorsport circuit.

We know what the greatest long-term investor of all time has been up to because the U.S. Securities and Exchange Commission requires investment managers with at least $100 million in assets to file a Form 13F quarterly report disclosing changes in share ownership. These documents add an important level of transparency to the stock market and give Buffett-ologists a bead on what the Berkshire chief is thinking.

When Buffett initiates a stake in some company, or adds to an existing one, investors read into that as a vote of confidence. But if he pares his holdings in a stock, it can spark investors to rethink their own investments.

Here's the scorecard for what Warren Buffett was buying and selling during the fourth quarter of 2021, based on Berkshire Hathaway's 13F filed on Feb. 14, 2022, for the period ended Dec. 31, 2021. You can check out the entire list of Buffett stocks here, or continue reading if you're most interested in Buffett's most recent transactions.

And remember: Not all "Warren Buffett stocks" are actually his picks. Some of Berkshire Hathaway's positions are handled by lieutenants Ted Weschler and Todd Combs.

Current share prices are as of Feb. 14, 2022. Holdings data is as of Dec. 31, 2021. Sources: Berkshire Hathaway's SEC Form 13F filed Feb. 14, 2022, for the reporting period ended Dec. 31, 2021; and WhaleWisdom.

• Action: Reduced stake
• Shares held: 61,412,910 (-0.01% from Q3 2021)
• Value of stake: $2.8 billion

Warren Buffett reduced Berkshire Hathaway's exposure to one of his more recent favorite stock picks by an immaterial amount in Q4. The holding company shed 350,000 shares, or less than 0.01% of its stake, in supermarket operator Kroger (KR, $45.69).

Buffett first bought Kroger in the fourth quarter of 2019 and quickly built on the position over the following two years. Shares are up by 57% on a price basis since Buffett initiated the position, boosted by the pandemic and operational tailwinds. Once you throw in dividends, the KR position has delivered a 66% total return.

Kroger operates roughly 2,750 retail food stores operating under such banners as Dillons, Ralphs, Harris Teeter and its namesake brand, as well as 1,585 gas stations and even 170 jewelry stores under banners including Fred Meyer Jewelers and Littman Jewelers.

With more than 61 million shares, Berkshire Hathaway is Kroger's third-largest stockholder, holding 8.4% of its shares outstanding. Only BlackRock (10.7%) and Vanguard (9.9%) have larger stakes in the supermarket chain.

It's only a middle-of-the-pack position at just 0.8% of Berkshire's equity portfolio. But the old-economy value play is a natural Buffett stock, right in line with the Oracle's traditional interests.

• Action: Reduced stake
• Shares held: 3,986,648 (-7.0% from Q3 2021)
• Value of stake: $1.4 billion

Mastercard (MA, $374.16) was the idea of lieutenants Todd Combs and/or Ted Weschler (Buffett won't tell). And it has been a mighty successful idea, returning well more than 1,400% since Berkshire established the stake in the first quarter of 2011.

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But for a second straight quarter, Berkshire Hathaway lightened its exposure. The holding company reduced its stake by 7% in Q4 to just under 4 million shares. That followed a cut of 6%, or 276,108 shares, in the prior quarter.

Mastercard is a bet on the global growth of digital transactions, and happens to be a Wall Street and hedge fund darling as well. Analysts credit MA's long-term outperformance to its "powerful brand, vast global acceptance network and strong business model." Substantial barriers to entry, thanks to Mastercard's massive scale, global reach, security and data management skills, information intelligence and trust, have also served it well.

MA wasn't a particularly meaningful part of BRK.B's equity portfolio prior to the most recent sales, and it's even less material now. MA accounts for 0.43% of the holding company's total portfolio value, down from 0.51% in Q3.

Shares in Mastercard were essentially unchanged in 2021, lagging the broader market by about 26 percentage points. The spread of COVID-19 greatly curtailed cross-border spending, as well as billings related to travel and entertainment.

The new year has been a different story, however, with MA beating the S&P 500 by a wide margin through the first seven weeks of 2022.

• Action: Reduced stake
• Shares held: 3,828,941 (-8.0% from Q3 2021)
• Value of stake: $2.5 billion

Charter Communications (CHTR, $608.28) seems to have lost some of its shine for Warren Buffett over the past few years.

The company – which markets cable TV, internet, telephone and other services under the Spectrum brand – is America's second-largest cable operator behind Comcast (CMCSA). It greatly expanded its reach in 2016 when it acquired Time Warner Cable and sister company Bright House Networks.

And yet Buffett slashed BRK.B's stake by another 8% during the fourth quarter of 2021. That followed a cut of nearly 20% in Q3, as well as reductions in 2020 and 2017 as well.

The most recent sale of 371,685 shares leaves Berkshire Hathaway with 2.1% of the cable company's shares outstanding, down from 2.4% at the end of Q3 – though BRK.B remains a top-10 shareholder. The stake was worth $2.5 billion as of Dec. 31, 2021.

Charter now accounts for 0.75% of Berkshire Hathaway's total portfolio value, down from more than 1% in Q3.

• Action: Reduced stake
• Shares held: 8,297,460 (-13% from Q3 2021)
• Value of stake: $1.8 billion

Like Mastercard, the Visa (V, $225.34) stock pick was the brainchild of either Todd Combs or Ted Weschler. And also like Mastercard, Visa – the world's largest payments processor – is a bet on the global growth of digital transactions.

The stock gets high marks from Wall Street analysts and is a favorite among hedge fund managers and billionaires. And yet Berkshire Hathaway cut its stake in Visa for a second consecutive quarter.

The holding company reduced its Visa exposure by 13%, or 1.3 million shares, in Q4. That followed a cut of 4% in the previous quarter.

Berkshire's remaining stake of 8.3 million shares was worth $1.8 billion as of Dec. 31, and accounted for 0.5% of its total portfolio value. That's down from 0.7% at the end of Q3.

Berkshire Hathaway first bought Visa in the third quarter of 2011, and while he didn't specify whether it was Todd Combs or Ted Weschler, Buffett admitted that it was one of his lieutenants. He also has said that he wishes it was his own stock pick, and that Berkshire had bought even more.

"If I had been as smart as Ted or Todd, I would have (bought Visa)," Buffett told shareholders at the 2018 annual meeting.

• Action: Reduced stake
• Shares held: 8,648,268 (-34% from Q3 2021)
• Value of stake: $344.6 million

Berkshire Hathaway sure changed its mind in a hurry on Royalty Pharma (RPRX, $39.11). After all, the holding company initiated a stake in the company just one quarter ago.

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Buffett picked up RPRX in the third quarter, buying 13.1 million shares worth $475.0 million at the time. However, he turned around and slashed the stake by more than a third, dumping 4.5 million shares in Q4.

Buffett has been hot and cold – OK, mostly cold – with his bets in the healthcare sector for the past several quarters, which might help explain the abrupt volte-face.

Royalty Pharma, as the name might indicate, is focused on acquiring biopharmaceutical royalties. It doesn't research or develop drugs – it helps provide capital for the companies that do. Through that model, RPRX has gotten a piece of blockbuster drugs such as AbbVie's (ABBV) Imbruvica, Biogen's (BIIB) Tysabri and Pfizer's (PFE) Xtandi.

To be sure, RPRX was never a significant holding to begin with. It now accounts for just 0.1% of Berkshire Hathaway's equity portfolio, down from 0.16% at the end of Q3.

However, with more than 2.0% of the firm's shares outstanding, BRK.B remains a top-10 stockholder.

• Action: Reduced stake
• Shares held: 5,202,674 (-76% from Q3 2021)
• Value of stake: $324.4 million

Warren Buffett reversed course on Bristol Myers Squibb (BMY, $59.62) in a big way in the fourth quarter, cutting his company's stake by 76%. Berkshire Hathaway has now sold shares in BMY during every quarter of 2021.

The most recent sales amounted to 16.8 million shares, leaving the holding company with a stake worth just $324.4 million as of Dec. 31. That followed a 16% reduction in Q3, when Buffett shed 4.2 million shares in the pharmaceutical giant.

Altogether, the moves represent a 180 for Berkshire Hathaway, which first bought BMY in the third quarter of 2020 and immediately added to the position in Q4.

The moves come as part of a general retreat by Berkshire Hathaway's on bets in the pharmaceutical industry. In the case of BMY, its late 2019 acquisition of biotech giant Celgene was thought to be a big part of Buffett's attraction to the stock. The deal brought in a pair of blockbuster multiple myeloma treatments: Pomalyst and Revlimid, the latter of which also treats mantle cell lymphoma and myelodysplastic syndrome.

A long track record of successful acquisitions has kept the pharma company's pipeline primed with big-name drugs over the years. But if the past four quarters of selling are any indication, Buffett seems to have reset his expectations for BMY – and the broader sector – going forward.

BMY now accounts for 0.1% of Berkshire Hathaway's portfolio value, down from 0.4% in Q3.

• Action: Reduced stake
• Shares held: 3,033,561 (-78% from Q3 2021)
• Value of stake: $410.7 million

Buffett first bought AbbVie (ABBV, $143.00) during the third quarter of 2020 as part of a wider bet on the pharmaceutical industry. But Berkshire has all but given up on the position, gutting it over the past four consecutive quarters.

The holding company dumped 11.4 million shares, or 78% of its ABBV stake, during the fourth quarter. That followed reductions of 29% in Q3, 10% in Q2 and 10% in Q1. AbbVie now accounts for just 0.1% of Berkshire's equity portfolio, down from 0.5% at the end of the third quarter.

The pharma giant is best known for blockbuster drugs such as Humira and Imbruvica, but analysts are also optimistic about the potential for its cancer-fighting and immunology drugs.

Another thing that puts ABBV among classic Buffett stocks is the biopharma firm's storied dividend history. AbbVie is an S&P 500 Dividend Aristocrat, by virtue of having raised its dividend every year for 50 years. The most recent hike – an 8.5% increase to the quarterly payment to $1.41 per share – was declared in October 2021.

• Action: Reduced stake
• Shares held: 404,911 (-85% from Q3 2021)
• Value of stake: $70.4 million

Berkshire Hathaway slashed its stake in Marsh McLennan (MMC, $151.71) yet again, this time by a whopping 85% in Q4.

Buffett sold more than a third of the position in Q3 after lightening up on it in Q2. The sales mark a stark reversal from Q4 2020 and Q1 2021, in which Berkshire initiated and then grew its stake in the insurance company.

Berkshire has plenty of insurance exposure in its core operations, of course, including Geico, General Re, MLMIC Insurance and Berkshire Hathaway Specialty Insurance, among others. But up until recently, the industry has never been a major factor in its equity portfolio. In fact, Buffett dumped what little of his Travelers (TRV) stake remained in early 2020.

The wind had changed direction for a couple quarters. Berkshire initiated a 4.2 million-share position in MMC worth just short of half a billion dollars during Q4 2020. It wasn't a major position, at just 0.2% of the total value of Berkshire's equity holdings. But by virtue of another 1 million shares or so purchased in Q1 2021, the stake had increased by 23% in just a few short months.

Cut to today, however, and Berkshire now holds what is essentially just a rump position. Its stake of less than 405,000 shares – worth $70.4 million as of Dec. 31 – accounts for 0.02% of its total portfolio value.

• Action: Exited stake
• Shares sold: 42,789,295
• Value of stake: $0

Berkshire Hathaway is out of the Teva Pharmaceutical (TEVA, $8.52) business, having sold the entirety of its stake – or 42,789,295 shares – in the firm.

The move comes amid Buffett's general multi-quarter retreat from bets across the healthcare sector.

During the fourth quarter of 2017, Berkshire initiated a stake in the Israel-based drug manufacturer, which was out of the market's favor at the time. A bloated balance sheet, mass layoffs and the looming expiration of drug patents had short sellers circling the stock. Needless to say, TEVA's valuation was depressed. Buffett apparently saw a bargain to be had.

Cheap? Yes. Value? Apparently not. The turnaround never materialized, leaving Teva's stock down roughly 75% over the past five years. This one looks like a bet Warren Buffett wishes he could take back.

• Action: Exited stake
• Shares sold: 43,658,800
• Value of stake: $0

Berkshire technically had three different investments in satellite-radio leader Sirius XM Holdings (SIRI, $6.17) as of Q3 2021. Not only did it hold a slug of SIRI shares – it also had positions via two different tracking stocks: Liberty Sirius XM Group Series A (LSXMA) and Liberty Sirius XM Group Series C (LSXMK) tracking stock.

At least these convoluted holdings gained a little clarity in Q4.

Buffett exited his stake in SIRI – which the holding company initiated during Q4 2016 – selling all of Berkshire Hathaway's 43.7 million shares. Thus, all of Berkshire's exposure to Sirius XM is now through Liberty-connected tracking stocks.

• Action: Added to stake
• Shares held: 1,816,547 (+1.0% from Q3 2021)
• Value of stake: $973.6 million

In Q4, Warren Buffett topped off BRK.B's stake in RH (RH, $408.62), which many readers know as Restoration Hardware.

The holding company upped its position by 1%, or 24,580 shares. Berkshire's total holdings of more than 1.8 million shares were worth more than $973 million as of Dec. 31. Berkshire, which was already positioned in home furnishings retail via its Nebraska Furniture Mart subsidiary, initiated the RH position Q3 2019.

RH operates 104 retail and outlet stores across the U.S. and Canada. It also owns Waterworks, a high-end bath-and-kitchen retailer with 14 showrooms.

While brick-and-mortar retailers have struggled mightily over the past few years thanks in part to the rise of e-commerce, RH has found success catering to the upper crust. And that success continued throughout the COVID pandemic as Americans, forced to work from home, decided to spend on improving their environs.

It's hard to tell whether this was an Oracle of Omaha buy, or a project of one of his lieutenants, Ted Weschler or Todd Combs. Buffett has been mostly mum on RH. Still, the stake fits broadly with the Oracle's worldview. Buffett stocks tend to be bets on America's growth, which certainly includes housing-related industries.

With 8.5% of RH's shares outstanding, Berkshire Hathaway is the company's third-largest stockholder.

• Action: Added to stake
• Shares held: 843,709 (+3% from Q3 2021)
• Value of stake: $109.7 million

Warren Buffett added 3% to Berkshire Hathaway's stake in Floor & Decor Holdings (FND, $104.85) in Q4, after initiating the position during the previous quarter.

The investment is very much in keeping with some of his other investments in home retail. Floor & Decor sells hard surface flooring and related accessories primarily through 133 company-operated warehouse store formats.

Buffett bought another 26,846 shares in the company to raise BRK.B's total position to nearly 844,000 shares.

True, it's basically still an immaterial holding, comprising just 0.03% of the portfolio. (For context, BRK.B's top 10 stocks account for nearly 90% of its portfolio value.)

But FND still fits nicely with some of Buffett's other holdings and investments. As we just said, Berkshire has also been building a position in homegoods retailer RH – formerly known as Restoration Hardware – since the third quarter of 2019. And Buffett has made no secret of his love for Berkshire Hathaway's wholly owned subsidiary Nebraska Furniture Mart.

Floor & Decor thus appears to be a way to play the housing market, albeit with a somewhat oblique, Buffett-style angle.

• Action: Added to stake
• Shares held: 38,245,036 (+33% from Q3 2021)
• Value of stake: $4.5 billion

It has been nearly impossible to get a bead on Buffett & Co.'s holdings in the energy sector over the past couple years.

Consider some of Uncle Warren's moves:

• Q4 2019: Sold off most of his Phillips 66 (PSX) position, but added more than 150% to his Occidental Petroleum (OXY) stake, and nearly 40% to a Suncor (SU) stake.
• Q1 2020: Fully exited Phillips 66.
• Q2 2020: Bailed out of his Occidental position, but upped Suncor by 28%.
• Q4 2020: Initiated a position in Chevron (CVX, $136.67), but dropped more than a quarter of the Suncor position.
• Q1 2021: Exited Suncor, sold more than half the Chevron position.

And now, after making another small trim to CVX during the second quarter of 2020 year, Buffett has come back and added a total of roughly 39 million shares over the past two quarters.

Berkshire upped its Chevron stake by 33% in the fourth quarter, adding more than 9.5 million shares. That followed a 24% increase, or nearly 29 million shares, in Q3.

Buffett now holds a total of more than 38 million shares in the energy supermajor, worth $4.5 billion. The stock, a component of the Dow Jones Industrial Average, has delivered a total return of 58% over the past 52 weeks, thanks to soaring crude oil prices.

• Action: Added to stake
• Shares held: 20,207,680 (+35% from Q3 2021)
• Value of stake: $1.0 billion

There's not really much to say as it pertains to Liberty Sirius XM Group, Series A (LSXMA).

Buffett has been involved with the Sirius XM tracking stock since the second quarter of 2016, and has been one of the stock's largest shareholders for some time. He added to that stake in a big way during Q4 2021, packing on more than 5.4 million shares, or 35%.

The most curious thing about the move is that it came during the same quarter Berkshire exited its position in Sirius XM's common shares.

So clearly, Buffett still wants to be involved with the world's top satellite radio provider. He apparently has just finally decided that the Liberty-tethered tracking shares are a more ideal way of doing so.

• Action: New stake
• Shares held: 2,118,746
• Value of stake: $134.0 million

Berkshire Hathaway initiated a miniscule stake in Formula One Group (FWONK, $62.29) in Q4. The purchase of 2.1 million shares, worth $134 million, represent 0.04% of the holding company's equity portfolio.

FWONK holds commercial rights for the Formula One world championship – a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship.

Formula One Group also is a subsidiary of John Malone's Liberty Media Corporation, making FWONK yet another of several Berkshire investments tied to the billionaire businessman.

• Action: New stake
• Shares held: 14,658,121
• Value of stake: $975.2 million

Berkshire Hathaway initiated a stake in video game publisher Activision Blizzard (ATVI, $81.50) during the fourth quarter.

Great timing.

In mid-January, Microsoft (MSFT) agreed to pay $68.7 billion, or $95 a share in cash, for the troubled video game publisher. At the time the deal was announced, the software titan was paying a premium of roughly 30% to the video game maker's most recent closing price.

BRK.B, however, bought more than 14.6 million shares in ATVI – worth $975.2 million as of Dec. 31 – during the fourth quarter at an estimated average price of $66.53 per share. That means Buffett likely made a quick 43% profit in very short order.

As we noted at the time, long-suffering shareholders — not to mention canny value investors — were rewarded for their patience in Activision Blizzard, which had a terrible 2021.

The developer of global hits such as World of Warcraft and the Call of Duty franchise saw its stock plunge amid allegations of sexual harassment, litigation, torrents of bad press and calls for CEO Bobby Kotick to step down. The company also faced tough year-over-year comparisons against 2020's pandemic-fueled growth.

Credit to Buffett or his lieutenants for buying a beaten-down stock on the cheap. Although at just 0.3% of Berkshire Hathaway's portfolio, the ATVI bet can't move the needle all that much.

• Action: New stake
• Shares held: 107,118,784
• Value of stake: $1.0 billion

Buffett-backed Nu Holdings (NU, $8.68) went public late last year, giving Berkshire Hathaway a stake worth $1 billion as of Dec. 31.

The Brazilian financial technology company, which offers digital banking services to 48 million customers in Latin America, was one of the largest initial public offerings (IPOs) of 2021. The fintech's hook is that most retail banks in Brazil charge extremely high fees while offering poor customer service to boot.

The chairman and CEO of Berkshire Hathaway, for the record, has never been a fan of IPOs. He's said so, on the record, and has notably turned up his nose at some of the most heavily hyped stock market debuts.

But that didn't scare him away from NU, the second widely touted IPO he's backed in the past two years. Berkshire Hathaway backed Snowflake's (SNOW) blockbuster IPO when the cloud infrastructure unicorn hit the public market in fall 2020.

There are three ways to receive your $1,400 third stimulus check (if you're eligible to receive one). You could have it deposited directly into your bank account, you could receive a prepaid debit card, or you could receive a paper check in the mail. Over 100 million Americans have already received electronic third stimulus payments from the IRS via direct deposit. About 5 million debit cards have been sent, and the IRS has already mailed paper checks over 15 million more people.

If you end up getting a paper stimulus check, you can either cash it or deposit it into your existing bank account. But what if you don't have a bank account—what are your options? Assuming you don't want to open a bank account with your stimulus check, here are a few other ideas to consider. (Use our Third Stimulus Check Calculator to see how much you should get.)

Since government checks are considered "safe," some banks will cash stimulus checks for non-customers—but you might have to pay a fee. While many banks are waiving fees for stimulus checks, it's best to call ahead to make sure. If there is a fee, it could run anywhere from $5 to over $20. Also make sure you bring at least two photo IDs with you (e.g., driver's license, passport, military ID, etc.).

The Federal Deposit Insurance Corporation (FDIC), which helps regulate banks and insures bank deposits, has encouraged financial institutions to work with people impacted by the coronavirus crisis, including by waiving fees and easing restrictions on cashing non-customer checks. So, hopefully, there's a bank (or credit union) near you that will cash your stimulus check without a fee.

Some large retailers will cash your stimulus check for you. Expect to pay a fee, though. Walmart, for example, will cash a government check of up to $5,000. Their fee is $4 for a check up to $1,000; $8 for a check above that amount. You can also have the amount of your stimulus check added to a Walmart "MoneyCard," which is a prepaid debit card.

Your neighborhood grocery store might cash your check, too. For example, if you shop at Kroger, Dillons, King Soopers, Smith's, Fry's Food, or another affiliated grocery store with a Money Services counter, you can cash your stimulus check for a small fee (restrictions may apply). Other grocers across the country cash government checks—so touch base with your local store to see if they offer this service.

PayPal has a service that lets you cash checks and have the amount credited to a PayPal "Cash Plus" account. You can do it all on your phone or other mobile device using the PayPal app. Just take a picture of the check and send it for approval. You pay a fee if you want the money credited to your account immediately, but there's no fee if you can wait 10 days. And now for the good news—PayPal is waiving the fees for paper stimulus checks, so you can get the money into your PayPal account right away for free.

Convenience story giant 7-Eleven also has a debit card program that you can use. Anyone with a Trans@ct Card can cash a check and apply the funds to your debit card account using a smart phone. Undisclosed fees may apply, though (see the cardholder agreement for details).

Netspend, Ingo Money, Venmo, and others provide similar services that let you cash a stimulus check using your phone. Again, make sure you understand the fees before you sign up.

Every city and even many small towns have cash-checking businesses that will handle a stimulus check for you. However, there's a good chance you'll pay higher fees at these stores than if you use one of the other options discussed above. For some people, though, the extra cost is worth it because of the store's hours, location, or additional services—and you don't have to have a pre-existing relationship with them.

Some states limit the fees charged by check-cashing businesses. Pennsylvania, for example, limits the charge for cashing a government check to 1.5% of the check's face value (or $21 for a $1,400 stimulus check). In California, the maximum fee for cashing a government check is $3. In other states, like Michigan or Texas, check-cashing businesses are not regulated. As a result, there is no limit on the fees businesses in these states can charge for their services.

Thanksgiving is late this year, which means shoppers will have less time to cruise the malls. But if you’re getting a late start, you have reason to rejoice: More retailers than ever are offering fast and speedy shipping. The Kiplinger Letter forecasts that online purchases will surge 24% during this year’s holiday season from a year earlier.

But there’s a catch: You’ll have to pay an annual fee at many retailers to take advantage of the fastest delivery. Amazon recently announced that Prime members, who pay $119 a year, will be able to receive their orders in one day instead of two. (Keep in mind that you can still snag free shipping from Amazon on many purchases of $25 or more without a Prime membership. Delivery on those orders usually takes five to eight days, though.) Target recently announced that it will offer free, same-day delivery on orders of $35 or more made via Target.com for shoppers who buy a $100 membership (nonmembers pay $10 per order). Macy’s has announced plans to test free, same-day delivery for orders of $75 or more.

Need groceries for your holiday festivities? Walmart has announced plans to expand its same-day grocery delivery service to more than 1,600 stores by year-end for subscribers who pay $98 a year. Walmart is also testing a service that will allow customers to have fruit, milk and other perishable items delivered directly to their refrigerators. The cost is $20 a month (plus the cost of groceries). Kroger is testing 30-minute grocery delivery in some markets for $5.95 per order.

Shoppers will also likely see more seasonal offers for free, fast shipping during the holiday season, says Rachel Dalton, a director at Kantar Consulting. But you will still need to leave some lead time when buying gifts or placing other time-sensitive orders. Amazon and big brick-and-mortar retailers are in a good position to get orders in on time, says Dalton. But retailers who haven’t beefed up behind-the-scenes systems—including supply chain and inventory tracking—may not be able to manage the volume and deliver on their shipping promises.

SEE ALSO: 25 Best Kirkland Products You Should Buy at Costco

For many shoppers who are serious about spending less on groceries, a trip to discount supermarket Aldi is a weekly ritual. The chain, founded in Germany, credits its rock-bottom prices to low labor and operating costs, a limited selection of mostly inexpensive private brands, and a no-frills store design. Merchandise is often stacked in the aisles and sold straight from the cardboard box it was shipped in. Essentially, it's a grocery store that's the size of a convenience store.

If there isn't an Aldi near you, don't be surprised if one pops up soon. With 2,500 stores already up and running in 39 states, the discount grocery chain has embarked on an aggressive growth strategy. It includes remodeling existing storefronts and expanding. Aldi is also increasing its fresh food selection with vegan options, organic meats and refrigerated beverages. Never shopped at Aldi before? Here's what you need to know before your first trip.

Trader Joe's and Aldi are owned by sister companies Aldi Nord and Aldi Sud. Aldi Nord owns Trader Joe's, which it acquired in 1979, and operates Aldi stores in Europe. Aldi Sud operates Aldi stores in the U.S. The first one opened in Iowa in 1976.

Aldi was founded in Germany by brothers Albert and Theo Albrecht. The brand name is a combination of the first two letters of their last name and the first two letters of the word discount. The brothers, now deceased, launched their grocery empire right after World War II but chose to split the business in 1961 reportedly due to a dispute over whether to sell cigarettes.

Aldi might not be a household name in the U.S., but it's well-known around the globe. The National Retail Federation (NRF) took a look at the top 50 most impactful international retailers and Aldi ranked fourth globally, finishing ahead of Costco and Home Depot. Walmart topped the list with Amazon coming in second. 

In the U.S., Aldi's 2,500 locations outnumber better-known supermarket chains including Whole Foods, Trader Joe's, Publix, Meijer, Food Lion and Giant. Albertsons (thanks to its acquisition of Safeway) and Kroger each operate more locations than Aldi.

As part of its low-price business model, Aldi keeps a limited number of staff on the clock at any given time (typically just three to five people). This means that certain conveniences common at larger supermarket chains, such as having groceries bagged for you, is the responsibility of the customer.

• You'll want to bring your own reusable shopping bags to pack up everything you've purchased. Otherwise, you'll have to buy shopping bags when you're ready to check out. At Aldi, a paper bag costs 12 cents, while insulated plastic grocery bags range from 69 to 98 cents each. 

While shopping carts at most grocers are free for the taking, Aldi requires a 25-cent deposit to use a cart. 

The cart rental system is simple: To release a cart for your use -- the carts are chained together — insert a quarter in the coin slot on the cart and the locking mechanism will disengage. When you return the cart and reinsert the chain, the quarter is returned. 

Why all the fuss over a quarter? Aldi says it saves money, which it passes along to shoppers in the form of lower prices, because it doesn't have to pay employees to wrangle stray shopping carts from the parking lot. If you want to avoid the 25-cent deposit altogether, it's OK to bring your own collapsible cart.

More than 90% of the products found at Aldi stores are private brands, including organic and gluten-free brands. The company gets many of its store-brand products from the same food manufacturers that make name-brand products, says frugal living expert Lauren Greutman, meaning quality and taste are often comparable.

Aldi carries far fewer products than a typical supermarket -- 1,300 items versus 30,000 — so stores are smaller and cheaper to operate, allowing the savings to be passed along to customers. "[Aldi] typically focuses on the most popular product items and package sizes," says Jon Springer, retail editor for Supermarket News.

Shoppers can find a small inventory of name-brand products, too. Name brands stocked by the chain include Coca-Cola, Oscar Mayer, Gatorade and Tide, says Liz Ruggles, the company's director of public relations.

Aldi claims that shoppers can save 25% by opting for its store brands over national brands. To test this, we compared a selection of similar products at Aldi and Walmart. 

For example, a can of Summit Popz Prebiotic Soda at Aldi was priced at $1.59, while the equivalent Poppi Strawberry Lemon Prebiotic Soda at Walmart cost $1.96. 

Similarly, Aldi's Berryhill Hazelnut Spread, priced at $2.79 for a 13-ounce jar, was significantly cheaper than Walmart's Nutella Hazelnut Spread with Cocoa, which cost $4.47 for the same size. 

Additionally, Aldi’s Clancy's Snack Combo, an 18-count variety pack of Doritos and Cheetos, was priced at $7.39, while the same-sized pack at Walmart retails for $9.98. 

Overall, Aldi’s prices were notably lower across these items, offering savings of roughly 28% compared with Walmart.

However, everything isn't always cheaper at Aldi. Since you can't use coupons at Aldi, Cindy Livesey, founder of website LivingRichWithCoupons.com, says you may be able to find better deals on such items as cereal and paper goods at a grocery store that does accept them. This is especially true when you combine manufacturer coupons with supermarket sales.

Aldi's "Double Guarantee" policy is designed to ensure that customers are completely satisfied with their purchases. Say you buy a box of store-brand cereal from the discount grocer and end up hating it compared to your usual name-brand cereal. Simply return the cereal, including original packaging, to the store manager to receive a full refund and a replacement item.

Note that Aldi's guarantee does not apply to certain items including alcohol and national name-brand products.

You'll notice that all of Aldi's store-brand products have multiple barcodes on them. This is intentional, says Ruggles, the Aldi spokeswoman. The design allows for a quicker checkout, because Aldi cashiers don't have to waste time searching for a single barcode to scan on each item in your shopping cart.

That's not the only way Aldi shoppers can save time. Since product selection is limited, stores are smaller than traditional supermarkets, and layouts are consistent from store to store, it can be faster to find everything on your shopping list at Aldi.

If you're planning a trip to Aldi, remember to leave your checkbook at home. As part of its effort toward speedier checkout, the grocer only accepts cash, debit cards, credit cards and contactless payment methods such as Apple Pay and Google Pay. Remember, too, that manufacturer coupons aren't accepted.

If it's any consolation, these restrictions can get you through the line faster since the person in front of you won't waste time filling out a paper check, fishing for an ID or scanning multiple coupons.

Read more: 15 Ways to Save on Groceries Without Clipping Coupons

Aldi locations operate during peak shopping hours, which typically means they aren't open as early or late as larger competitors. The company's rationale: "Staying open later would simply add to labor costs — and raise our prices."

Read more: Supermarket Showdown: Aldi vs. Whole Foods

For busy families on the go, carving out an hour or two for grocery shopping in between soccer practice and piano lessons can be difficult. Aldi has made knocking out that weekly task a bit easier by offering online grocery delivery through Instacart in select cities. 

If you’re not already registered for Instacart, you’ll need to do so before placing your first order. Once you've signed up, you can load up your virtual shopping cart with many of the same items you’d find in-store, though note that the online prices won’t always be the same as in-store prices.

When you’re ready to check out, you’ll need to schedule delivery and Aldi offers a couple of options. Get your groceries as soon as the same day for a $3.99 delivery fee for orders over $35 for non-members. Instacart members have $0 delivery fees on orders over $35.

Read more: 15 Things Retirees Should Buy at Costco

Select Aldi locations sell beer and wine. The reason why all stores don’t sell alcohol is because the discount grocer must obtain special licenses on a store-by-store basis, which can be a lengthy process, the company says. 

For shoppers who live near an Aldi location that carries beer and wine, you can expect to find locally sourced and imported options ranging from hard cider and lager beer to cabernet sauvignon and Riesling wines.

The discount grocer’s wine selection has won several beverage industry awards including the World Wine Championship’s Best Buy and Gold Medal awards. Prices vary depending on where you live, but generally range from $5.99 to $14.99 per bottle. Aldi offers several types of beer that are available in four- and six-packs. Per-pack prices typically range from about $5 to $7.

To find out if the Aldi location near you sells alcohol, use their store locator tool at aldi.us/stores. It lets you search nearby stores according to the features they offer -- for example, you can choose to view only stores that sell beer or stores that sell wine or stores that have parking lots.

If you don’t eat meat or dairy or prefer organic produce, you’re in luck. You don’t have to spend a small fortune at a pricey specialty supermarket to find suitable options. Aldi has a variety of budget-friendly food items for vegans and vegetarians alike — or those who simply want to make healthier food choices.

The discount grocer’s Earth Grown line is free of animal-based ingredients and includes vegan cheese and various meat alternatives (kale and quinoa crunch burgers anyone?) at affordable prices compared to other stores. 

Aldi also has a gluten-free line of products called LiveGFree that includes cereal, baking mixes, frozen pizza, bread and pasta.

Read more: Things You Can Get at Costco Without a Membership

Heading to the supermarket for some basics, say a gallon of milk, a dozen Grade A eggs, a loaf of white bread and a jar of peanut butter? Strictly judging by the bottom line, you may want to give Aldi a shot.

Below we priced kitchen staple items from Aldi, Kroger and Walmart:

• Eggs: Aldi, $3.99; Kroger, $4.09; Walmart, $4.92
• Bread: Aldi, $1.55; Kroger, $1.79; Walmart, 1.42
• Peanut butter: Aldi, $2.19; Kroger, $1.99; Walmart, $1.94
• Milk: Aldi, $2.89; Kroger, $2.79; Walmart, $2.66

Savings experts say it’s best to steer clear of most toys, home goods, cleaning supplies and other non-food items at Aldi. But if you’re tempted -- every so often, Aldi will score national-brand products and put what appears to be amazing prices on them -- first pull out your smartphone and price-compare.

“Make sure you check the price on these as they tend to be higher prices on lower quality items at Aldi,” says money-saving expert Brent Shelton. “Plus, you can often find coupons for these types of items at other stores, even grocers, which would make buying them elsewhere a smart thing to do.” Reminder: Aldi doesn’t accept coupons.

When we compared prices on a roll of paper towels, for example, Aldi’s price of 99 cents was the same as the price at Giant and Target. However, coupons and loyalty discounts could’ve brought down the price more at the latter retailers. (Aldi doesn’t have a loyalty program, either.)

Like many of Aldi’s goods, fruits and vegetables are often sold from the bulk boxes they were shipped in. No fancy, bountiful horn-of-plenty displays. And unlike major chains, many Aldi stores, especially older locations, don’t refrigerate produce. 

“Produce [from Aldi] can spoil more quickly,” says Tracie Fobes, a money-saving expert at the website Pennypinchinmom.com, “so buy only what you can eat within a few days.”

Also, Aldi pre-packages many of its fruits and vegetables in bulk, so if you want, say, an apple you need to buy an entire bag. Most big supermarket chains sell similar produce loose. The latter approach allows shoppers to pick out the freshest individual items available.

However, Aldi is rolling out changes at new (and newly remodeled) stores aimed at fending off competitors. On top of better lighting and wider aisles, Aldi’s new store format puts fresh produce center stage and includes refrigerated units for the likes of greens, perishable fruits, and premade soups and dips. 

Bulk packaging still rules at new stores, but that’s a big reason why Aldi can keep produce prices so low.

Read more: Secrets to Shopping at Costco

The economy's as strong as it's been in years, and corporate earnings have collectively been even better than expected. By all accounts, companies—all companies—should be thriving. And most are.

Not every company though. A handful of notable outfits are strangely struggling, choosing to play defense rather than offense. Some are laying workers off. Others are shuttering locations. Still others are selling off underperforming businesses.

Retreating isn't necessarily a bad move. Sometimes it makes strategic sense to take a step back and regroup. Most of the time when a company back-pedals, however, it's a less-than-encouraging clue.

To that end, here's a look at seven noteworthy corporations in retreat mode. For some, the ultimate result may well be a healthier business. Keep an eye on each company's progress to judge for yourself. In none of the cases, though, should shareholders be thrilled about the underlying reasons for the defensiveness.

Stock prices as of Aug. 22. As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

• Share price: $52.82
• 52-week range: $47.37-$61.94

The oft-recycled joke about a Starbucks (SBUX) being found on every street corner in America isn't funny because it's true. Numbering over 14,000, the coffee chain now has more locations in the U.S. than McDonald's (MCD).

The saturation formula worked for a long, long time. As culture changed though, so did health-minded habits. So did consumer preferences for socializing. So did the public's perception of premium-priced coffee. The end result is slowing sales growth, and as of late last year, shrinking operating income. The business just isn't what it used to be, and the company seems unable to give itself a much-needed caffeine jolt.

The next best option is now in play, at least for the time being. Before throwing away good money after bad, in June Starbucks announced it was planning to close approximately 150 stores in 2019, or three times as many as it would normally shutter. It's only a drop in the bucket, so to speak, but it does point to an acknowledgement of a problem that may well accelerate store closure plans in the foreseeable future.

• Share price: $31.74
• 52-week range: $19.69-$31.99

Once the name to beat in the grocery business, the past few years have proven tough ones for the nation's largest grocer, Kroger (KR). The reason for the weakening profitability since 2015 is complicated, but it involves better competition including Amazon (AMZN), a growing consumer preference for less mainstream brands, food inflation that can't entirely be passed along to its shoppers, and even food deflation that forces the supermarket chain to dramatically cut prices on certain goods.

The company has navigated around and survived all those pitfalls in the past. But, somehow the impact of them this time around is different in that it's prodded divestitures. Early this year Kroger opted to sell 784 of its convenience stores to British gas-station operator EG Group for a little more than $2 billion, and it recently announced it might sell its Turkey Hill Dairy brand. Kroger is even abandoning hyper-competitive markets, closing all of its remaining Raleigh and Durham, N.C., locations this month rather than looking for new ways to compete.

The business reconfiguration may ultimately streamline Kroger for the better. Given the choice though, many shareholders might prefer management to work to rekindle struggling stores, divisions and brands rather than simply letting go of them.

The demise of Sears Holdings' (SHLD) namesake stores, as well as its Kmart division, can't be terribly surprising. It was struggling to keep up with competitors even before the rise of Amazon.com. The king of online retailing simply exacerbated the problem.

What is surprising, however, is how long the company has managed to hang on as it sells pieces of itself to raise much-needed cash, with CEO Eddie Lampert still insisting there's a turnaround in store. "Let me be the first one to acknowledge we are on the right path but we haven't gotten over the hump. We need to convert our vision into reality," Lampert said at this year's annual shareholder meeting in May, adding that the matter has been "made much more difficult because the operating performance isn't where it needs to be."

It's true that operating performance isn't where it needs to be, but just as problematic is the fact that Lampert continues to shrink the company's capacity to drive cash flow by selling stores rather than fixing them.

In June, the retailer upped its store-closure plans from 68 to 78 locations, but that was in addition to the 166 closures it had announced last year for 2018. On Thursday, it announced plans to close 13 additional Kmart stores and 33 additional Sears stores. That should pare the count down to below 800 stores, versus the 2,000 Sears and Kmart stores (not counting Sears Canada) that were up and running just four years ago.

• Share price: $12.47
• 52-week range: $11.94-$25.30

General Electric (GE) was once an industrial icon. As the world increasingly became a digital place, though, GE struggled to maintain its relevance. Indeed, it's largely been left behind, and it's got the shrinking top and bottom lines to prove it.

What went wrong? It's easy to say the absence of the legendary Jack Welch at the helm is the core problem. Such an explanation oversimplifies the matter, however. Far more problematic may be the fact that conglomerated organizations once benefited from being in a myriad of business lines, but now that complexity has become a liability.

At least that's how relatively new CEO John Flannery seems to see things. Most recently it's been rumored that the company is mulling the sale of a power-conversion business it acquired in 2011, but willing to dump it at half the price it paid for it. Meanwhile, it's been confirmed that Starwood Property Trust (STWD) is going to purchase part of GE Capital's energy finance arm. That sale follows May's news the GE Transportation would be sold off to Westinghouse Air Brake Technologies (WAB).

It remains to be seen if all the deal-making will make the remaining pieces of GE a more effective operation.

• Share price: $83.39
• 52-week range: $70.73-$94.67

Procter & Gamble (PG) is another conglomerate that leveraged its size and diversity for decades, but found that the advent of the internet and the way it changed consumerism undercut those advantages. Innovation by smaller, hungrier companies is now faster, and it's never been easier for consumers to find alternative products.

So, like GE, P&G has slowly but surely realized it would be better off by not being in so many businesses.

The divestiture party started in earnest in late 2016, when it sold its specialty beauty brands to Coty (COTY), though one could argue 2014's sale of its Duracell battery brand to Berkshire Hathaway (BRK.B) was the beginning of a long streak of business exits.

CEO David Taylor, who took the helm in late 2015, hasn't pushed asset sales as firmly as his predecessor did, though he didn't need to. And, he certainly didn't undo the plan to shed as many as 100 of P&G's brands either... a plan that's for the most part completed. In fact, Taylor has directed a couple of acquisitions. In April, for instance, the company announced it would be acquiring the consumer health business of Germany's Merck.

As was the case with GE, it's not clear if the reconfigured P&G is better than the old one.

• Share price: $38.57
• 52-week range: $29.53-$47.82

Generic drugmaker Mylan (MYL) isn't in full-blown retreat mode yet. But, that certainly seems to be the shape of things to come. Following the release of another round of disappointing quarterly numbers, CEO Heather Bresch established a strategic review committee to evaluate "all alternatives." That's the indirect way of acknowledging the company would probably be better off by breaking itself up and letting each piece become hyper-focused on doing one thing very well.

It's certainly a dramatic turnaround for a company that was not only a feared name within the generic drugs arena, but an operation that appeared to thrive on acquisitions and deal-making.

Morningstar's pharmaceuticals sector strategist Michael Waterhouse notes of the reversal of fortune: "While we previously thought Mylan's global economies of scale and vertical integration helped give the firm a low-cost edge, we think the continual rise of new entrants, particularly from low-cost emerging markets, continues to diminish the cost advantage of larger peers."

It could take weeks, if not months, for the review committee decide Mylan's best course of action, but it's unlikely such a committee would be formed—or such a comment would have been made by Bresch—if significant changes weren't on the horizon.

• Share price: $37.22
• 52-week range: $32.16-$39.43

Add food giant Conagra Brands (CAG) to the list of companies aiming to shrink their way to greater prosperity. It sold its private label foods business in 2015, and followed up the next year by spinning off its potato outfit Lamb Weston. In 2017 it announced it would be selling its Wesson cooking oil brand to J.M. Smucker (SJM). Early this year Conagra decided to sell its Canadian processed fruit and vegetable division—operating under the Del Monte moniker—to Bonduelle Group.

The deal-making is part of a much bigger shakeup within the increasingly competitive food industry. Most companies in this space are looking to sell brands they can't operate effectively, and looking to buy brands that play to their core strengths. Conagra is currently working to finalize a $10.9 billion deal to acquire Pinnacle Foods, and in February it closed on the purchase of Sandwich Bros. of Wisconsin.

Conagra is arguably moving in the right direction; most of its major sales and purchases have likely already been completed. Analysts are at least mindful that the company will end up healthier as the reconfiguration takes hold. To what extent or when Conagra will be better off, though, isn't yet certain.

Haven’t heard of Lidl? You will soon. The German supermarket chain opened its first U.S. stores in June 2017, and it expects to have 1,400 locations nationwide by 2023. Lidl (rhymes with needle) operates 10,000 stores in 27 countries. Here are three reasons to give the discount grocer a try.

1. Prices are low

Lidl’s biggest selling point is savings. Its prices on a selection of everyday grocery items undercut Kroger’s prices by nearly 15%, Walmart’s by as much as 10% and Aldi’s by about 5%. Shoppers should benefit as rival retailers lower prices to stay competitive.

2. The wine is good

Lidl’s Allini Prosecco was recently named “Sparkling Wine of the Year” at a blind tasting run by Purdue University. In all, Lidl’s wines, which start at $2.89 a bottle, took home 104 medals. Wines are categorized by price: Everyday Collection (under $5); Wine Club ($5-$10); and Sommelier Selection (above $10).

3. Aisles are full of surprises

Lidl offers more than groceries. Every Monday and Thursday it rolls out what it calls “surprises.” These are while-supplies-last deals on an eclectic mix of non-grocery items. Recent surprises included a duvet set (king- or queen-size bed) starting at $17.99 and girl’s leopard print jeggings for $4.99.

Learn about more ways Lidl is disrupting the grocery business in the U.S.

There’s a fresh-to-the-U.S. supermarket chain with a funny name that has some very serious plans for American shoppers. Germany-based Lidl (rhymes with needle) is a deep-discount retailer that started rolling out stores in June. Several locations are already up and running in Virginia, North Carolina, South Carolina and Delaware. Lidl’s goal is to open another 100 stores along the East Coast within a year and operate 1,400 across the nation by 2023. The U.S. headquarters is in Arlington, Va.

Lidl may be new to you, but the company is no newcomer. It operates 10,000 stores in 27 countries, and has famously squared off against rival German grocery discounter Aldi in Europe, where it has found immense popularity. (Pub denizens even sing a ballad about Lidl in Ireland.) The success of Lidl’s business strategy relies on small-but-attractive stores, high-quality store brands, eclectic non-grocery offerings and, above all, super-low prices. If U.S. shoppers embrace the concept, the chain could quickly become a serious threat to a wide swath of retailers, from traditional supermarkets to dollar stores, warehouse clubs to sporting goods stores.

“Lidl’s entry into the U.S. is going to be the greatest thing to raise shoppers’ standard of living since World War II, more than Amazon, more than plunging energy prices; Lidl will precipitate a price war of unprecedented proportions,” says Burt P. Flickinger III, managing director of Strategic Resource Group, a consulting firm specializing in retail and consumer goods.

There’s a lot more to learn about Lidl. Sneak a peek.

A pricing study conducted by Deutsche Bank soon after Lidl started opening U.S. stores in June showed that Lidl’s prices undercut Walmart by as much as 10% and Kroger by nearly 15%. We visited a new Lidl store in Culpeper, Va., and an Aldi supermarket in Chantilly, Va., in August to compare prices using our own shopping list of 28 common items, from ground beef and hot dogs to cereal, milk, eggs, diapers and bottled water. Lidl’s prices beat Aldi’s on 12 of the items. The two stores tied on nine. Aldi was cheaper with seven of the items. In all, we found Lidl to be more than 5% cheaper than Aldi.

“Shoppers, and consuming families, will save $5,000 to $5,500 per year (for a family of five) because Lidl will create dramatic, ongoing price declines,” says Flickinger, whose consulting firm just completed studies of Lidl’s impact in the United Kingdom, the European Union and the United States.

Don’t expect competitors to take Lidl’s aggressive push into the U.S. lying down. At the same time Lidl was preparing to open its first stores in June, Aldi announced plans to open 900 more stores in the U.S. over five years – it currently has about 1,600 – and spend $1.6 billion to remodel 1,300 of its existing stores.

Those bargain prices are tucked into small spaces. Lidl’s U.S. stores are about 21,000 square feet. The median size of a traditional full-line supermarket is about 46,000 square feet, according to the Food Marketing Institute. And that’s the median, or middle point, meaning half of all supermarkets are bigger than 46,000 square feet.

You’ll navigate only six aisles at Lidl, which makes finding what you’re looking for a lot easier. Traditional supermarkets might have four times as many aisles. Lidl stores have high ceilings, natural wood accents and huge, bright windows. It’s a stark contrast to the sparse, warehouse-like spaces you’ll encounter at most Aldi stores.

• A signature touch of Lidl is the front-of-the-store bakery, which Aldi doesn’t have. Lidl stores bake their own doughnuts, breads, Bavarian (of course) pretzels, croissants and pastries daily. Expect free samples. You’ll also be greeted at the entrance by fresh produce, though no one is paid to arrange it all pretty. As at Aldi, most of it is left in the box it was shipped in, to save time and money.

And once you’ve seen one Lidl, you’ve seen them all. There’s a single store design.

The initial crop of grand openings over the summer featured balloon archways, long lines and stiff competition for shopping carts. The earliest arrivals were given free shopping bags – like at Aldi you need to bring your own bags or get charged for bags at checkout – and a chance to win Lidl gift cards. Some shoppers were even greeted by costumed characters including a human-size, logo-emblazed strawberry.

• Once Lidl hits in or around your market, you’ll hear about it. A lot. Says Flickinger, “Lidl has the best 360-degree use of marketing and advertising we’ve seen anywhere in the world.” The company knows how to effectively place advertising on multiple platforms (print, online and broadcast), he says, to reach its target customers.

“Other than Home Depot and Ace Hardware,” says Flickinger, “Lidl is the only power retailer left anywhere in the world that looks at advertising as an investment rather than an expense.”

Ninety percent of the items in a Lidl store are store brands – one store brand to look for is Preferred Selection – with a scattering of national brands. The focus on store brands keeps prices low. It also limits selection. In other words, you won’t find five brands of ketchup on the shelves. That’s either a pro or a con, depending on your brand loyalty and your thirst for choice.

• As at Aldi and Trader Joe’s, Lidl’s packaging for store brands is cleverly designed. The Lidl potato chip bags look like Lay’s; the Lidl country style baked beans cans look like Bush’s. I’ll admit I was fooled by a two-liter bottle of “Diet Cola,” for 82 cents. The label was so similar to actual Diet Coke I thought the Diet Cola was Diet Coke, which was nearby and selling for $1.56.

But low prices on store brands don’t necessarily equate to low quality. What goes inside is an upgrade from the generics of yore. Otherwise, customers wouldn’t be returning. I tried Lidl’s store-branded dried and canned pasta, pasta sauce and two of the wines and can personally attest to the quality and tastiness.

Lidl is upping the ante in the alcohol department. Not only is the wine inexpensive, starting at $2.89 a bottle, but it’s also good. Adam Lapierre, a certified Master of Wine (there are only 365 people who have that title), is Lidl’s wine director. He estimates he tasted approximately 10,000 bottles of wine to settle on who would bottle Lidl’s brands.

For example, Lidl’s Allini Prosecco from Italy was recently named “Sparkling Wine of the Year” at a blind tasting run by Purdue University. Its Sinful Grin Petite Sirah from California was chosen best of class. In all, Lidl’s wines took home 104 medals from the 2017 INDY International Wine Competition. Wines are organized on store shelves in three categories by price: Everyday Collection (typically under $5); Wine Club ($5-$10); and Sommelier Selection (above $10).

Then, there’s beer.

Craving a Bud Light? You can find it at Lidl, right next to the…what’s this?...knockoff Bud Light? Indeed. Lidl has its own line, in packaging that looks like Bud Light, parked next to the real thing. Maybe you’re into craftier beers, like Blue Moon. Lidl has its version, dubbed Blue Key. In a nod to U.S. shoppers’ tastes, beer is sold cold, which is uncommon in Europe.

Yes, Lidl is more than a discount supermarket. It’s also a house of fashion. That’s thanks to style icon Heidi Klum of “Project Runway” fame. Klum’s exclusive fashion clothing line, Esmara by Heidi Klum: Heidi and the City, went on sale at U.S. stores in September.

It’s part of Lidl’s efforts to enhance its non-grocery offerings. Like its groceries, prices are low for Heidi-wear, mostly in the $6.99 to $29.99 range (though you’ll be able to strut in a real leather jacket if you pony up $60).

Leather shoes, business-wear slacks, leopard-print hoodies, blouses and more are included in the Esmara by Heidi Klum line, which is only sold at Lidl during periodic “Fashion Weeks,” when collections go on sale to Lidl shoppers.

Twice a week, on Mondays and Thursday, Lidl rolls out what it calls “surprises” – while-supplies-last deals on an eclectic mix of non-grocery items. When I was there, the Culpeper Lidl was featuring back-to-school merchandise including notebooks, sneakers and kids’ clothing.

• Sometimes the surprises are seasonal; other times, just quirky. I’ve recently seen deep discounts in stores on pressure washers, vacuum sealers and charcoal grills. A quick scan of the latest surprises listed on Lidl.com revealed everything from paella pans for $9.99 to Esmara by Heidi Klum cardigans for $12.99.

“[Lidl is] the most revolutionary retailer I’ve seen in 35 years,” says Flickinger. “Even Dick’s Sporting Goods [is at risk], because you can get a soccer ball or baseball bat at Lidl for $3.50 and very high-quality sneakers and footwear, even basic tools that will affect Lowe’s and Home Depot.”

The most celebrated grocery chain in the nation is 100 years old, but you’ve probably never heard of it. And even if you have, you’ve probably never set foot in one of its stores. The retailer recently dethroned Trader Joe’s as America’s favorite supermarket, yet you won’t find its stores in 44 states.

But don’t fret for Wegmans. What the Rochester, N.Y., company lacks in name recognition and geographic reach, it makes up for in other ways. Wegmans stores are bigger and more abundantly stocked than those of rival chains, and its shoppers exhibit a cult-like devotion to its products and service. Case in point: You might need a reservation – a reservation! – to eat at one of Wegmans’ in-store restaurants.

I’m no stranger to Wegmans. I shopped there frequently during my many years living in Upstate New York. I also covered Wegmans and the Wegman family for two decades in my job as a business journalist in Syracuse, getting an inside look at what makes the company tick. Here’s what you’ll want to know before you make your first trip.

The shopping experience at Wegmans is rich. And textured. And huge. Stores range in size from 75,000 square feet to 140,000 square feet, versus 46,000 square feet for a typical supermarket, according to the Food Marketing Institute, a trade group for food retailers and suppliers. The open, airy layout begins with a signature produce section that evokes a European market. Bins are piled high with fruits and vegetables that often are in season and locally sourced.

Choices abound. Wegmans stocks up to 70,000 products in its larger stores, while the average supermarket carries about 42,000 products. Expect to be bombarded with free samples (along with cooking demonstrations and recipes) on the busiest shopping days.

The approach is paying off for Wegmans. Annual per-store sales at its Boston-area locations top $80 million, while competitors’ sales average $30 million, Andrew Wolf, managing director for BB&T Capital Markets, told the trade publication Supermarket News.

“So each [Wegmans] location is doing the equivalent of two or three other stores,’’ says Wolf.

Wegmans’ stores might be big, but the company’s national footprint is small. There are just 89 locations in six states: Maryland, Massachusetts, New York, New Jersey, Pennsylvania and Virginia. Live anywhere else and you’re out of luck. By comparison, Kroger operates 2,778 grocery stores in 35 states.

Founded in Rochester, N.Y., a century ago, Wegmans didn’t even expand outside of its hometown until the 1960s. Its first out-of-state store, in Pennsylvania, opened in 1993. Since then, the company has slowly spread in the Northeast and Mid-Atlantic.

Thirteen new Wegmans stores are in development, including five in Virginia; two each in New Jersey, Pennsylvania and Massachusetts; one in Maryland; and one in Brooklyn, the first foray into New York City. As for new states, Wegmans is exploring expansion into North Carolina.

The downside of Wegmans’ huge selection and abundant product displays is the perception that its prices are higher than competitors’ prices. According to Jim Hertel, senior vice president at Willard Bishop, a retail industry consulting firm owned by Inmar Analytics, that’s not necessarily the case. In particular, Wegmans’ store-branded products can be a bargain.

“The quality is as good as the national brand,’’ says Hertel. “And if a national brand costs $1, a typical store brand costs 82 cents.”

• We puts Wegmans’ store brands to the test against the store brands of three competitors in Northern Virginia: Giant, Harris Teeter and Whole Foods. We compared regular non-sale prices on a basket of eight everyday items: a can of diced tomatoes, a jar of pasta sauce, a box of dried spaghetti, a can of tuna, a half-gallon of 1% milk, a large container of plain yogurt, a dozen Grade A eggs and a package of frozen corn. We didn’t factor in savings from coupons or store loyalty programs.

The winner: Wegmans. Of the four stores, the basket of eight store-brand items cost the least at Wegmans ($14.62), followed by Giant ($15.03), Harris Teeter ($20.00) and Whole Foods ($21.13).

Wegmans is more than just a supermarket. Many visitors to its stores are hanging out, eating a meal and socializing, in addition to stocking up on groceries. Analysts who track the industry call this trend destination retailing.

“Most supermarkets are around 45,000 square feet, and shoppers can’t wait to get out,” says Phil Lempert, a supermarket industry analyst who runs SupermarketGuru.com. “Wegmans’ stores are double that size and more, and shoppers want to spend the day there -- to shop, to see their friends and to enjoy the wonderful prepared foods.”

• To encourage lingering, the company has been rolling out restaurant concepts located within or adjacent to its stores. Some locations even accept reservations. The Pub, for example, serves craft beers and dressed-up bar fare. Amore specializes in Italian food and wine. The menu at Next Door ranges from seared fois gras to sushi. There’s also a Burger Bar and a Seafood Bar.

“The culture of shopping has changed,” says Lempert. “Millennials shop differently than baby boomers or Gen X. They never want to eat the same thing twice in their lifetime.”

Wegmans has been piling up accolades for years. As an employer, it’s been on Fortune’s “100 Best Companies to Work For” list every year since 1998, ranking No. 4 in 2016. (It was No. 1 in 2005.) It also ranks fourth on Forbes’ list of “America’s Best Employers” for 2016. Wegmans employs more than 46,000 workers.

Customers like it, too. Wegmans was picked as America’s favorite grocer in a recent survey of 10,000 shoppers by Market Force Information. Publix finished in second place, followed by Trader Joe’s, which had held the top spot for four years in a row. Wegmans also ranked first among supermarkets in the latest American Customer Satisfaction Index, ahead of Trader Joe’s.

Need more proof of its popularity? Wegmans says more than 4,000 people contacted the company in 2015 asking for stores to be opened in their communities.

Even if you’ve never been to a Wegmans, you’ve likely seen Wegmans’ influence in your local supermarket. The chain’s practices are widely imitated in the industry.

“We go around the country, and we see evidence that other retailers have visited a Wegmans,” says Hertel, the retail industry consultant. “There are signs all over the place.’’

Those covered shopping cart corrals in your grocer’s parking lot? The Wegmans effect, he says. The design protects the expensive carts during harsh Upstate New York winters. If you walk into the produce section and see bananas selling for 39 cents a pound, that’s a Wegmans touch, too. Hertel says displaying the cheap fruit front and center creates an impression of value for shoppers entering the store. Tilt tables showcasing mounds of fresh produce? Wegmans, again.

• “Many, many grocers have gone to school on Wegmans,” says Hertel.

Wegmans traces its origins to 1916, when brothers Walter and John Wegman were peddling fresh produce to the citizens of Rochester. The company has been privately owned and family operated ever since. Robert Wegman, son of Walter, joined the business full time in the 1930s. He assumed leadership in 1950 and guided Wegmans’ expansion as chairman until his death in 2006.

Wegmans’ current CEO is Danny Wegman, son of Robert. He joined the company in 1964. One of Danny’s two daughters, Colleen, is president of Wegmans (pictured here on a store tour). The other daughter, Nicole, is a senior vice president. Both are in their forties, planting the Wegmans name firmly in the executive lineup for years to come.

• Independence is unusual in the rapidly consolidating supermarket industry. Among the latest grocery-store mergers: Albertsons snatched up Safeway in 2015, and Kroger acquired Harris Teeter in 2014. But Wegmans seems to be in good hands. Annual sales hit $7.9 billion last year, up from $7.4 billion in 2014, placing Wegmans at No. 33 on trade publication Supermarket News’s “Top 75 Supermarkets” list based on sales volume.

Many Wegmans shoppers rave about the cheese selection. And why not? Visit the “Cheese Shop” on Wegmans.com and you’ll find more than 300 kinds to choose from. And we’re not talking Kraft Singles. Wegmans’ fancy cheeses venture into the gourmet realm of cave-ripened bries, camemberts and triple cremes.

• The secret to Wegmans’ success? It operates its own cheese caves -- sort of. There are no stalagmites sticking up or bats hanging down. Rather, Wegmans built a high-tech facility near Rochester to replicate the effect that cave ripening has on cheese.

Aging cheese in natural caves is a long-established practice in Europe. The controlled climate allows “good” bacteria and mold to go to work on cheese and enhance (ripen, in cheese-speak) the flavor. Wegmans’ eight artificial cheese caves housed within the facility perform the same function.

“Our customers will get a cheese that’s absolutely perfect, with the taste and texture they prefer, every time,” Cathy Gaffney, who oversees cheese for Wegmans, said when the cheese caves went into operation in 2014.

If you had to name stores known for their large selection of organic items, you’d likely say Whole Foods, The Fresh Market or perhaps Trader Joe’s. Walmart probably wouldn’t come to mind, though. The retail giant is known for its low prices. But organic food?

Walmart actually offers 1,600 organic grocery items, including a line of packaged goods from the Wild Oats brand, which once was a chain of natural-food stores that was bought by Whole Foods. And its size and scale allows the retailer to make organic items available at affordable prices, says Walmart spokesperson Molly Blakeman. “We don’t think people should have to pay more to put organic on the table,” she says.

Walmart started carrying the Wild Oats brand in 2014. Now about 3,800 of its stores stock at least 30 Wild Oats products and 2,200 stores have more than 70 of the brand’s items on shelves, Blakeman says. The prices are on par with similar conventional items and at least 25% lower, on average, than national organic brands, she says. Walmart also offers 50 organic produce items under its Marketside private-label brand along with a variety of other organic items from national brands.

We wanted to find out if the prices on Walmart’s organic offerings were lower, so we did some comparison shopping at several grocery stores (Kroger, Meijer, Trader Joe’s and Whole Foods). On the whole, the organic produce prices were almost the same at the Walmart Supercenter and the supermarkets we checked. Trader Joe’s had lower prices on several of its organic fruits and vegetables (see Best and Worst Buys at Trader Joe’s). Prices on organic dairy products and eggs also were consistent across the stores we checked – with the exception of milk. The Whole Foods 365 Everyday Value Brand was about $1 less than a gallon of organic milk at Walmart and the other stores we checked (see Best Things to Buy at Whole Foods).

Standout items in terms of price at Walmart were, indeed, the Wild Oats organic offerings. The prices on many (but not all) of these organic products were lower than competitors’ prices and often not much higher than the prices on their conventional counterparts at Walmart. The following 10 Wild Oats organic items, in particular, were a good deal at Walmart. Because they are pantry-stable packaged items, the quality should be consistent from store to store.

Applesauce. At $2.14, a 23-ounce jar of Wild Oats applesauce was about $1 less than organic applesauce at the supermarkets we checked. Considering that conventional apples are at the top of the Environmental Working Group’s Dirty Dozen list of produce items with the highest pesticide loads, applesauce might be a good item to buy organic.

Canned beans. A can of Wild Oats organic beans (all varieties) costs just 20 cents more than a can of Walmart’s Great Value brand conventional beans, about the same as other brand-name conventional beans and at least 40% less than organic brands at the other supermarkets we checked.

Coconut oil. This oil can be used for cooking as well as skin and hair care. A 29-ounce jar of Wild Oats organic coconut oil was $2 to $4 less than brands sold at other supermarkets we checked.

Fruit spread. Strawberries are another item on the Dirty Dozen list. So if you like to add a little jelly to your toast, an 11-ounce jar of Wild Oats organic strawberry fruit spread was almost $2 less than a similar jar of organic jelly at Kroger.

Ketchup. Tomatoes also make the list of produce that test high for pesticides, so you might want to consider ketchup made with organic tomatoes. A 24-ounce bottle of Wild Oats organic ketchup costs about 65% less than a bottle of Annie’s brand organic ketchup and 10 cents less than a 20-ounce bottle of Kroger’s Simple Truth brand ketchup.

Olive oil. A 17-ounce bottle of Wild Oats organic extra virgin olive oil was about $1 less than brands at other supermarkets we checked.

Pasta. Organic penne, spaghetti and other pastas sold in 16-ounce packages under the Wild Oats brand were more than 25% cheaper than Kroger’s and Meijer’s private-label brands of organic pasta.

Pasta sauce. Wild Oats marinara sauce was the only organic pasta sauce we found priced less than $2 at the stores we checked. At $1.95 for a 25-ounce jar, the Wild Oats sauce was at least 15% cheaper than brands at other supermarkets.

Salsa. At $2 for a 16-ounce jar, Wild Oats organic salsa was about $1 less than organic salsas sold at the other supermarkets we checked.

Soup. Wild Oats organic soups in 18.6-ounce cans were at least $1 less than 17-ounce cartons from Campbell’s line of organic soups in stores we checked.