Kroger 2008 Annual Report Download - page 23

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The Kroger Co. Page 22
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 own brands to build and solidify customer loyalty. Our vision is to
inspire customers to choose our stores because of our exclusive, preferred
brands. Corporate brands such as “Private Selection®”, our Banner
brands, and “Comforts®” are Kroger’s ultimate loyalty program because
customers can buy these brands only in our stores.
Our supermarket divisions typically stock approximately 14,000 corporate
brand items. During the fourth quarter of fiscal 2008, 27% of Kroger’s
grocery sales came from our own brands, and grocery unit sales of Kroger
brands reached a record-high 35%. 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 our
own 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.
Product Quality
Consumer research, the finest ingredients, and our rigorous testing
produce the quality behind Kroger’s own brands. This is an important part
of the everyday value that is found in all our products. This consistent
focus on quality provides the foundation of our strong corporate brands
program.
Our own brand strategy focuses on providing choices to our customers
through a three-tier offering of price points and product experiences:
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.
We now offer more than 1,000 unique Private Selection® items.
2. Our “banner brand” (Kroger, Ralphs, King Soopers, etc.), which
represents the majority of our own brand items, is designed to be the
great quality our customers and their families expect, with a wide
breadth of products to meet their many needs. As with all of our own