Kroger 2008 Annual Report Download - page 41

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The Kroger Co. Page 40
CUSTOMER 1st STRATEGY
The Kroger team did an outstanding job in 2008 of consistently delivering
results in an increasingly difficult economic environment. Our efforts to
help customers and their families navigate the difficult economy are driven
by our Customer 1st strategy.
Listening closely to our customers is the foundation of this approach. 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 seven 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 the combination of strong, sustainable identical sales growth
and slightly improved operating margins, both excluding our retail fuel
operations. Investments in our customer’s 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 investors well in a variety of economic and
competitive conditions.