Kroger 2008 Annual Report Download - page 19

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The Kroger Co. Page 18
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 higher
incremental return because they require little investment in overhead,
advertising, and distribution.
Mergers/Acquisitions
Date
# Stores
(A)
Location
Banner
Change?
Winn-Dixie
Albertson‟s
[Individual stores]
June 2004
September 2004
2004
8
3
7
Cincinnati OH
Omaha NE
[Various]
Yes
Yes
Yes
Winn-Dixie
March 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
Fort Wayne IN
Detroit MI
[Various]
No
Yes
Yes
[Individual stores]
2008
9
[Various]
Yes
(A) Represents stores acquired. Kroger may not operate all.