Kroger says 'high' interest in convenience stores

Kroger disclosed a "high level of interest" by prospective buyers for its convenience stores business that it is considering selling as the grocery industry grows more competitive.

Kroger officials said they continued to evaluate whether to cash out of its 784 convenience stores located across 18 states. The company operates several convenience store brands, though none locally: Turkey Hill Minit Markets, Loaf ’N Jug, KwikShop, Tom Thumb and QuickStop.

Last month, the company disclosed it might sell or spin-off the operations that generate $4 billion in annual sales.

"This process is ongoing," said Kroger chief operating officer Mike Schlotman.

The update came as Kroger reported solid third quarter results on Thursday.

Despite Amazon's Whole Foods takeover and ongoing price pressure from Walmart, U.S. food deflation came to an end in the latter half of 2017. Kroger has also taken a number of steps to combat the changing grocery landscape.

Wall Street analysts predicted it would report a $360 million profit before one-time items on sales of $27.3 billion, according to Zacks Research. Last year, the grocer reported a $391 million profit on sales of $26.6 billion.

"Customers are recognizing our efforts to redefine the customer experience and rewarding us with their loyalty," CEO Rodney McMullen said. "We continue to accelerate our digital and e-commerce offerings, to grow our brands, to lower prices for customers, and to invest in our associates."