Kroger 2014 Annual Report Download - page 5
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Wearequicklybecomingatop destinationforcustomerslookingfor affordable, accessible organic
and natural foods.NaturalFoodscontinuestobethefastest-growingdepartmentinourstoresonapercentage
basis.Ourleadingnaturalandorganicsstorebrand,Simple Truth,reachedamilestone$1.2billioninannual
salesin2014.Andthiswithintwoyearsoflaunchingthebrandexclusivelyinourstores!Duringtheyear,more
than20millionhouseholdsboughtoneofourmorethan2,600SimpleTruthorSimpleTruthOrganicitems.
Investing to Grow
OurmergerswithHarrisTeeterandVitacosthavealsoopenednew markets that present meaningful
growth opportunities for Kroger. In fact, Vitacost today sells direct to consumers in all U.S. states and
territories,andmorethan160countriesworldwide.
We are currently pursuing our fill-in markets strategy, as outlined in 2012, and are making good
progress.Fill-inmarketsareexistingmarketswhereweareinvestingcapitaltogrowsquarefootage,primarily
throughnewandexpandedstoresandremodels,inordertoincreaseourmarketshare.
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The Kroger Difference
Increasingly,shopperscareaboutprice,productselectionandquality,thestoreexperienceand how
wellcompaniestakecareoftheirassociates,communitiesandtheplanet.
Taking Care of Our Associates
IamproudtosaythatKrogerisinthefoodbusinessandthepeoplebusiness. Our people are our
greatest asset.
We want our workforce to be the healthiest in America. To improve workplace wellness, we give
associatesavarietyoftools,includinganincentiveprogramwithmeasurableoutcomes.Overthelastfour
years,wehaveseenademonstratedimprovementinthehealthofourworkforcethroughlowercholesterol,
bloodpressureandbloodglucosescores.And,ourworkplacewell-beingprogramreceiveda‘BestEmployers
forHealthyLifestyles’awardfromtheNational Business Group on Health,andthecompany’scommitment
toemployeehealthandwellnesswasrecognizedbytheAmerican Heart Association.
Our goal is to provide our associates a total compensation package that includes solid wages, good
quality,affordablehealthcare,andretirementbenefits.In2014,Krogerinvested$1.8billioninourassociates’
health care.
Kroger is also one of the safest companies in our industry. Associate engagement in innovative
safetyprogramshasreducedaccidentratesinourstoresandmanufacturingplantsby77percentsince1995.
In2014,649retaillocationsandthreemanufacturingplantswenttheentireyearwithoutarecordableinjury.
We continue to do our part to create jobs and opportunity.Weemploy25,000moreassociatestoday
thanwedidlastyear.Morethan90percentofthesenewjobsareinoursupermarketdivisions,rangingfrom
full-timedepartmentheadsandassistantstoremanagerstopart-timecourtesyclerksandcashiers.Overthe
lastsevenyears,Krogerhascreatedmorethan65,000newjobsinourlocalcommunities.Weareparticularly
proudthatwehiredmorethan6,000veteransin2014andmorethan29,000veteranssince2009.
Weprideourselvesonouropportunity culture,whereallassociateshaveanopportunitytogrow,build
newskillsandturnajobintoacareer.Morethantwo-thirdsofourstoremanagersstartedtheirKrogercareers
aspart-timeclerks.IbeganmyowncareeratKrogerasapart-timestockclerkwhileearningmydegreeatthe
UniversityofKentucky,soIknowfirst-handtheopportunitiesthatareavailabletoourassociates.
OneofthethingsthatmakesKrogersospecialishowweextendouropportunityculturetoeveryone.
Wehavealongtraditionofhiringpeoplewithdisabilities,especiallyonourfrontlinesservingcustomers.
Lastyear,KrogerwasrecognizedbytheMarriott Foundation for People with Disabilities and separately
bythe Ohio Governor’s Council on People with Disabilitiesforsignificantlycontributingtoemployment
opportunitiesforthedisabilitycommunity.