Kroger (NYSE:KR) is buying Harris Teeter for $2.5 billion, but is Kroger making a smart bet? With only 200 locations, Harris Teeter expands Kroger's store count by just 10%. Motley Fool analyst Jason Moser discusses the competitive landscape in the grocery business and how Kroger is caught between Whole Foods (NASDAQ:WFM) and Wal-Mart (NYSE:WMT). Although shares of Kroger rose on the news, Jason believes investors can do better than jumping in today.

Chris Hill owns shares of and Whole Foods Market. Jason Moser owns shares of The Motley Fool recommends and owns shares of and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.