Kroger 2008 Annual Report Download - page 9

The Kroger Co. Page 8
Combination Food & Drug Stores
Banners
 Baker‟s
 City Market
 Dillons
 Fry‟s
 Gerbes
 Hilander
 Jay C Food Stores
 King Soopers
 Kroger
 Owen‟s
 Pay Less Super Markets
 QFC
 Ralphs
 Scott‟s
 Smith‟s
The combination store (combo) is Kroger‟s primary format. This format
typically draws customers from a 2.0 – 2.5 mile radius and offers them the
advantage of “one-stop shopping” in convenient locations. Combo stores
are designed to be a flexible format with a product selection tailored to
meet the specific needs of the neighborhood‟s demographics. Combo
stores feature a complete supermarket and pharmacy – most include
service bakeries, delis, seafood, meat, and floral shops; expanded general
merchandise; “whole health” sections and organic produce; and pet
centers. Many include a supermarket fuel center. Combination stores that
were opened during the last two years average 73,000 square feet and
required an average investment of $13 million, including real estate.
Individual locations may vary widely from the average, depending upon the
geography of the store. Our combo stores have proven successful in
competing against all formats, including supercenters.
In certain markets, we have also introduced our “Fresh Fare” approach to
our combo stores. In these select locations, the emphasis is on high
quality perishables and top-notch customer service. At the end of 2008, we
characterized 105 of our combo stores as “Fresh Fare” locations.