Kroger 2007 Annual Report Download - page 42

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CUSTOMER 1st STRATEGY
Kroger delivered another year of strong financial results in 2007, thanks to
the contributions of our associates in every area of our business as they
continue to execute Kroger’s Customer 1st strategy.
Listening closely to our customers is the foundation of our Customer 1st
strategy. We focus intently on its four keys:
Our people are great!
I get the products I want, plus a little.
The shopping experience makes me want to return.
Our prices are good.
This is a journey that we began over six years ago. Since then, our
strategy has helped us strengthen our connection with customers.
Our business model is straight-forward: increase annual earnings per
share through strong and sustainable identical sales growth, slightly
improved operating margins, and fewer shares outstanding. Investments in
our customers’ shopping experience help us drive strong and sustainable
identical sales growth. These investments can take several forms –
including improved customer service, better product quality and selection,
and lower prices. We are able to fund these investments through operating
cost reductions and productivity enhancements in several areas of our
business.
A cornerstone of our business strategy is balance. We seek to consistently
deliver strong financial results in the near-term while making meaningful
investments for our future. We believe our Customer 1st strategy can serve
customers, associates, and shareholders well in a variety of economic and
competitive conditions.
The Kroger Co. Page 42
This year, Kroger is honored to celebrate our 125th anniversary. Our
longevity is a testament to our ability to change along with our customers.
We have been fortunate as a company to welcome change – decade after
decade – and use it to benefit our customers, associates, and
shareholders.