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NEW YORK (TheStreet) -- Kroger (KR) - Get Free Report and other traditional grocery stores could be nearing the end of their fight against superstores like Costco (COST) and Walmart (WMT), Wells Fargo said on Monday in a note cited by Barron's.

"Maybe the grocery industry has seen the worst in terms of lost market share vs. the warehouse clubs and superstore industry," the firm said, especially when compared to the department store industry.

"Growth in the warehouse clubs and superstore industry has slowed down considerably since the Great Recession and compared to the pre-Great Recession period," the firm said.

Wells Fargo added that demographic and generational changes could be slowing growth, as millennials choose to live in downtown areas away from warehouse clubs and superstores.

Kroger, a grocery retailer based in Cincinnati, will report second quarter earnings on September 9. Citigroup said that investors could have an opportunity to buy the stock on "potential downside" after it posts results, according to Barron's.

Shares of Kroger closed down on Monday.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: KR

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