Kroger 2007 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2007 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 55

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55

ACQUISITION STRATEGY
As the supermarket industry continues to consolidate, Kroger reviews
potential acquisition candidates and carefully analyzes their potential to
enhance shareholder value.
Kroger’s acquisition strategy focuses primarily on existing markets. Such
“in-market” acquisitions have lower risk and generally produce a high
incremental return because they require little investment in overhead,
advertising, and distribution.
Mergers/Acquisitions Date
#
Stores
(A)
Location Banner
Change?
Food Town
Eagle Food
Cub Food
[Individual stores]
June 2003
Sept. 2003
Oct. 2003
2003
13
6
4
7
Toledo OH
Illinois
Denver CO
[Various]
Yes
Yes
Yes
Yes
Winn-Dixie
Albertson’s
[Individual stores]
June 2004
Sept. 2004
2004
8
3
7
Cincinnati OH
Omaha NE
[Various]
Yes
Yes
Yes
Winn-Dixie Mar. 2005 1 Cincinnati OH Yes
Buehler Food Markets April 2006 1 Louisville KY Yes
Scott’s Food & Pharmacy
Farmer Jack
[Individual stores]
April 2007
June 2007
2007
18
20
2
Ft. Wayne, IN
Detroit, MI
[Various]
No
Yes
Yes
(A) Represents stores acquired. Kroger may not operate all.
The Kroger Co. Page 20