Kroger 2007 Annual Report Download - page 15

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The Kroger Co. Page 15
synergies in backstage operations in order to maximize operating
efficiencies and minimize operating costs.
In areas that directly affect the customer, Kroger’s decentralized structure
places substantial authority for merchandising and operating decisions in
our supermarket divisions. Divisional managers are able to respond
quickly to changes in competition and customer preferences within each
local market.
For backstage processes that offer economies of scale or are invisible to
the customer (such as procurement, accounting, treasury operations, etc.),
Kroger leverages its size and centralizes those functions to create value for
customers and better returns for shareholders.
Kroger’s 18 supermarket operating divisions include:
Division Headquarters # Stores
Ralphs Los Angeles, CA 268
Kroger Atlanta Atlanta, GA 215
Kroger Southwest Houston, TX 209
Kroger Mid-South Louisville, KY 162
Kroger Central Indianapolis, IN 154
Food 4 Less Los Angeles, CA 145
King Soopers/City Market Denver, CO 141
Kroger Michigan Novi, MI 136
Smith’s Salt Lake City, UT 133
Fred Meyer Stores Portland, OR 128
Kroger Mid-Atlantic Roanoke, VA 128
Kroger Columbus Columbus, OH 125
Fry’s Phoenix, AZ 118
Kroger Delta Memphis, TN 110
Kroger Cincinnati Cincinnati, OH 109
Dillon Stores Hutchinson, KS 100
Quality Food Centers (QFC) Seattle, WA 75
Jay C Seymour, IN 30
TOTAL 2,486
Major Markets
At year-end 2007, Kroger operated stores in 44 major markets. A major
market is one in which Kroger operates nine or more stores. Kroger holds
the #1 or #2 position in 39 of those major markets.
At least 35 of Kroger’s 44 major markets are located among the nation’s
top 100 Metropolitan Statistical Areas (MSAs) ranked by population.