Kroger 2007 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 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

MARKET SHARE
Kroger serves customers in 44 major markets, which we define as a
metropolitan area in which we operate nine or more stores. Over 70% of
our stores are located in these markets. The 2007 market share figures
reported below are based on internal estimates. We include all retail
outlets that sell merchandise comparable to our own – including
supercenters and other non-traditional retail formats.
For 2007, Kroger held the #1 or #2 share in 39 of our 44 major markets.
According to our estimates, Kroger’s share increased in 37 of these 44
major markets in 2007, declined in six, and remained unchanged in one.
On a volume-weighted basis, Kroger’s overall market share rose
approximately 65 basis points during 2007 in our 44 major markets.
Kroger competes against a total of 1,340 supercenters. There are 36 major
markets where supercenters have achieved at least a #3 market share
position. In 2007, Kroger’s market share increased in 31 of those 36
markets, declined in four, and remained unchanged in one. On a volume-
weighted basis, Kroger’s market share expanded 95 basis points in those
36 markets during 2007.
Kroger competes against 1,065 Wal-Mart supercenters. This reflected an
increase of 65 stores compared to the prior year. Wal-Mart supercenters
have achieved at least a #3 share in 34 of the 36 major markets where we
have significant supercenter competition. Kroger’s market share increased
in 30 of those markets, declined in three, and remained unchanged in one.
On a volume-weighted basis, Kroger’s market share grew over 80 basis
points in those 34 markets during 2007.
The Kroger Co. Page 43
Despite the growing number of competitors in the grocery business, we
have increased our market share on top of strong gains in 2005 and 2006.
During the last three fiscal years combined, Kroger’s share in our major
markets has increased approximately 165 basis points. These consecutive
year-over-year gains in market share are significant because they show
that Kroger’s long-term strategy is working as we continue to deliver value
to both our customers and our shareholders.