Kroger 2007 Annual Report Download - page 24

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CORPORATE BRANDS
Corporate brand products play a central role in Kroger’s Customer 1st
strategy and provide a key competitive advantage to Kroger. We are using
our corporate brands to build and solidify customer loyalty. Our vision is to
inspire customers to choose our stores because of their exclusive,
preferred brands. Corporate brands such as “Private Selection®”,
“Everyday Living®”, plus our new “Active Lifestyle®” and “Private Selection
(PS) Organic™” brands are Kroger’s ultimate loyalty program because
customers can buy these brands only in our stores.
Our supermarket divisions typically stock approximately 14,400 private
label items. Kroger’s private label grocery items, in terms of dollars,
represent approximately 26% of the Company’s grocery sales. Our share
in terms of units is approximately 32%. High-velocity, lower retail items –
such as bread, canned tuna, and canned vegetables – explain a substantial
portion of the difference between these two figures.
In addition to the grocery category, Kroger carries a wide selection of
corporate brand products in other departments throughout our stores. We
continue to expand and refine our offering in meat, seafood, deli, floral,
produce, health & beauty care, and general merchandise in support of our
corporate brands vision.
Corporate Brands: Product Quality
Consumer research, the finest ingredients, and our rigorous testing
produce the quality behind our corporate brands. This is an important part
of the everyday value that is found in all our products. All corporate brand
items, whether manufactured or procured, are held to the same high
standards. This consistent focus on quality provides the foundation of our
corporate brands program.
Kroger’s corporate brands strategy focuses on providing choices to our
customers through a “three-tier” offering of price points and product
experiences:
The Kroger Co. Page 24
1. Private Selection® is our premium quality brand, made from only the
finest ingredients to provide our customers with an extraordinary
experience that makes bliss-filled moments out of everyday meals.