While Kroger's results are disappointing, Target announces plans to hire 20% more for the holidays

Kroger Co.'s shares fell after the supermarket chain missed analysts' estimates and margins continued to decline in the company's second quarter.

Kroger's poor results contrast with those of its competitors Walmart Inc. and Target Corp., who have raised their expectations for 2018.

Same store sales increased 1.6% excluding gasoline sales. This is lower than the 1.8% estimate of Consensus Metrix.

A consumer-friendly environment has put retailers in the lead, with Target and Dollar General CEOs saying the conditions are the best they have been in for more than a decade. As a result, investors have punished companies that have not been able to take advantage of the favorable climate.

All temporary workers hired by Target after this Sunday will start with an hourly wage of $ 12 and will also receive benefits such as a 10% discount on Target.com and a 20% discount on wellness items like fruits, vegetables and equipment. Press release. Target will also set aside $ 2 million to reward seasonal workers as part of its worker appreciation program.

Target plans Thursday to double the number of temporary positions dedicated to the fulfillment of online orders during the holidays. This means that he plans to hire 120,000 seasonal workers for the end – of – year holidays, an increase of 20% over last year.

Kroger's online sales have increased by more than 50%. The company has expanded home delivery and curbside options, while entering into agreements with Home Chef Meal Kits manufacturer and U.K. Ocado online grocer. The idea is to strengthen its defenses against Amazon.com Inc. and other competitors.

Kroger's investments weighed on profitability and gross margins continued to contract.

Grocery chains have been under constant pressure from competition, especially as German discounters Aldi and Lidl are expanding in the United States.

Kroger shares fell 11% to $ 28.22 early in the session after the earnings release. The title gained nearly 16% this year at Wednesday's close.

If the current stock pullback continues after the opening of the shares, it will be the largest decline for the company's stock in six months.

Associated Press contributed to this report.