Progressive Grocer - December 2008 - (Page 20)

Retailer of the year 2008 The Kroger Co. The standout among conventional grocers in a tough year, Taking in sync with customers. —Barney Kroger, 1860-1938 (quoted on the Careers page of Kroger’s Web site) The Kroger Co. stays several steps ahead because of years spent moving By Meg Major “Success isn’t measured by how much merchandise you sell. Real success is found in the development of, and opportunities you provide for, the people who are selling it.” ood retailing is a marathon, playing out on a brutally congested floor, and it demands of its contenders an assortment of essential skills even just to keep moving in time. But the moves that routinely serve the front-runners best—proper preparation and pacing, ample stamina, light-footedness, and an indefatigable spirit of commitment—are the admirable traits exhibited by PROGRESSIVE GROCER’S 2008 Retailer of the Year, The Kroger Co. Having perfected its technique in recent years with a laser-focused, customer-centric strategy that makes all the right moves, the nation’s largest pureplay grocer has maintained an extraordinarily strong footing, especially compared with the industry it competes in, but also in relation to the larger realm of public companies. Kroger’s stock price has far outperformed both the food retailers and wholesalers index, as well as the Dow Jones U.S. total market index, over the past several years. The company today controls 9 percent of the U.S. 20 • Progressive Grocer • December 2008 F retail food industry; only Wal-Mart surpasses it. Kroger posted revenues of $70.2 billion in 2007, an increase of 6.2 percent over 2006. Operating profit was $2.3 billion, up almost 3 percent compared with the year before. What’s more, it achieved identical sales, excluding fuel, of 5.3 percent for the fiscal year, bettering its own original expectations. The grocer’s roots date back to 1883, to a single grocery store in Cincinnati—a city that’s become synonymous in the trade with the company’s flagship banner. Today, of course, Kroger is a giant casting its shadow far beyond its hometown, operating nearly 2,500 supermarkets and multidepartment stores under a variety of wellKroger’s success consists of giving shoppers what they want, including a broad selection of fresh produce. known and respected retail brands in 31 states, as well as nearly 800 convenience stores and 400 jewelry stores. Kroger is also solidly positioned to exert control over its profit margins in a variety of key categories, thanks to ownership of 42 food-manufacturing plants in 17 states. A third of the company’s supermarkets, and nearly all of its c-stores, sell gasoline. However, groceries continue as the chain’s bread and butter, good for nearly 95 percent of its revenues last year. The numbers tell a solid story, for sure—that in the face of aggressive competition and against an economic backdrop as challenging as any this industry has faced in decades, Kroger stands out from the pack as the sharpest conventional grocer in the land. There’s another story beyond the numbers and balance sheets, but nonetheless as real a testament to the company’s power, and as crucial to any under- A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - December 2008

Progressive Grocer - December 2008
Contents
Front End: Onstead Becomes Interim Bi-Lo C.E.O.
Nielsen’s Shelf Stoppers/Spotlight: Shelfstable Juices/Vegetable Juices and Drinks
Market Snapshot: .Seattle-Tacoma,Wash
Retailer of the Year: Taking the lead
Lempert Report: Obama Prepares to Tackle Food Industry Issues
Independents Report: What Grocers Need to Know About Market Day
Consumer Research: Reason for Relevance
Shopper Culture: Reimagining Convenience Foods
Wake-up Call: The Ballad of The Egg Man
Eggs: A Kinder, Gentler Egg
Shelf-Stable Juice: Making a Splash
Post-PMA Show Analysis: High Yield
Niche Pork: Go Whole Hog for Local
Pharmacy: Chronic Customer Service
Technology: A Small-Town Grocer Discovers Digital DIY
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - December 2008