Kroger seroy 2014

25
Southeast Retailer of the Year 2014 Kroger Atlanta e opening of Kroger’s new Marketplace stores and its $2.5 billion acquisition of Harris Teeter have been headline-generators for the nation’s largest full-service grocery retailer, but there’s more to discover behind the scenes, particularly in Kroger’s fast-growing Atlanta Division, now operating nearly 200 stores across Georgia, eastern Alabama and South Carolina. Join e Shelby Report for a look beyond the headlines and find out how the Atlanta Division has positioned itself with customers, the community and the local economy. Meet the decision-makers behind Kroger Atlanta’s growth and sustainability strategies along with some of the philanthropic partners who depend on the brand’s strong and longtime support. Kroger Atlanta President Bruce Lucia at the opening of the Kroger Marketplace store in Gainesville, Georgia, in March 2014. Kroger SEROY copy.indd 71 11/10/14 10:03 AM

description

 

Transcript of Kroger seroy 2014

Page 1: Kroger seroy 2014

Southeast Retailer of the Year 2014 Kroger Atlanta

The opening of Kroger’s new Marketplace stores and its $2.5 billion acquisition of Harris Teeter have been headline-generators for the nation’s largest full-service grocery retailer, but there’s more to discover behind the scenes, particularly in Kroger’s fast-growing Atlanta Division, now operating nearly 200 stores across Georgia, eastern Alabama and South Carolina.

Join The Shelby Report for a look beyond the headlines and find out how the Atlanta Division has positioned itself with customers, the community and the local economy. Meet the decision-makers behind Kroger Atlanta’s growth and sustainability strategies along with some of the philanthropic partners who depend on the brand’s strong and longtime support.

Kroger Atlanta President Bruce Lucia at the opening of the Kroger Marketplace store in

Gainesville, Georgia, in March 2014.

Kroger SEROY copy.indd 71 11/10/14 10:03 AM

Page 2: Kroger seroy 2014

72 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

Kroger Atlanta Works to Earn Customers’ Business in aVariety of Ways, Every Dayby Carmel G. HearnFor The Shelby Report

The Kroger Co. recently has generated its share of headlines, not the least of which include:• Its $2.5 billion acquisition of Harris Teeter• Forbes’ “Most Generous” company in the U.S. distinction• Expansion of its Kroger Marketplace format

Kroger’s Atlanta Division is making strides, too, leveraging its gains in the markets and communities it serves. Kroger Atlanta now operates 186 stores across Georgia, eastern Ala-bama and South Carolina, including three Marketplace stores in Carrollton, Gainesville and Savannah, with a fourth under way in Athens. The division’s charitable efforts focus on hun-ger relief, K-12 education, women’s health initiatives and local organizations.

“For these reasons and more, The Shelby Report is pleased to announce Kroger’s Atlanta Division as our Southeast Re-tailer of the Year,” said Ron Johnston, president and publisher of Shelby Publishing Co. “When Bruce Lucia was named At-lanta president in 2000, David B. Dillon, now chairman, said, ‘We are confident that under his strong leadership, Kroger’s Atlanta division will achieve further success as the premier food retailer in the Southeast.’ It is no surprise, then, that the 39-year Kroger veteran has led his division to claim The Shelby Report’s Retailer of the Year honors.”

Seizing the opportunity to delve beyond the headlines, The Shelby Report is taking a rare look inside Kroger Atlanta’s op-erations in this report. By examining brand strategies and poli-cies in key areas that have led to company growth and industry leadership, evidence suggests that the road to Kroger’s success story may be paved as much by altruism as economics.

Growth Avenues for growth include the Marketplace format, Fuel Centers and a new Distribution Center.

Kroger was founded in 1883 and incorporated in 1902. The Kroger Co., which is headquar-tered in Cincinnati, Ohio, is one of the largest retailers in the Unit-ed States based on annual sales and, according to its 2013 Fact Book, holds the No. 23 ranking on the Fortune 100 list published in May 2013.

Kroger’s Atlanta Division an-nounced in September it was hiring for 2,000 new perma-nent positions to supplement its 26,000-plus work force. Kroger Atlanta also is planning an 82,000-s.f. store near the Lind-bergh City Center in Atlanta and a 1-million-s.f. distribution center on the city’s south side.

“Kroger’s Atlanta Division ac-tively seeks opportunities to fulfill the shopping needs of communi-ties across Georgia and the rest of the Atlanta Division,” said Fahmi Hashish, real estate senior man-ager. “When potential growth opportunities are identified, we conduct a thorough evaluation of the surrounding and broader community to determine the type

of store that would best serve a particular area. This process in-cludes a variety of assessments, including consumer research and extensive strategic planning to ac-count for a wide number of fac-tors—including location, ease of access, product selection, store features and more. This is an on-going process.”

On Jan. 28, 2014, the merger between Kroger and Harris Tee-ter was completed, bringing 227 new stores to the Kroger family. These stores are located in fast-growing and southeastern and mid-Atlantic markets and have increased Kroger’s supermarket footprint by three states (Florida, Delaware and Maryland) plus the District of Columbia.

“Kroger has long admired Har-ris Teeter,” noted Hashish. “We are pleased that our integration is going well and that we are bring-ing together the best of both companies to benefit all of our customers.”

Kroger Atlanta operates 133 fuel centers and recently opened

the chain’s 2,000th Fuel Center in Decatur, Georgia. Despite low margins, the fuel centers can de-liver a high return on investment and seem to have a positive effect on overall store sales. For exam-ple, in 2013, total fuel sales were $19 million and total store sales were $76.7 million. In 2011, those respective numbers were $16.9 million and $71 million.

“Kroger is committed to bring-ing the best products and services to the communities we serve,” ex-plained Kyle Branch, Kroger At-lanta Fuel Center manager. “As we actively sought, and still seek, op-portunities to provide our shop-pers with convenient locations and amenities, Kroger Fuel Cen-ters were established to provide yet another great service to en-hance our shoppers’ experience.

“Kroger customers have re-sponded extremely well to our Fuel Centers,” Branch added. “We constantly listen to the needs of the communities we serve, and in doing so, determined our

Please see page 74

“Kroger prides itself in providing a unique and enjoyable shopping experience for all our customers. This commitment, in addition to our Fuel program, ensures our fuel centers provide customers with another convenient, easy opportunity to save money.”

—Kyle Branch, Fuel Center manager

Kroger SEROY copy.indd 72 11/10/14 10:17 AM

Page 3: Kroger seroy 2014

Co

ng

ratu

latio

ns to

the

Kro

ge

r Atla

nta

Divisio

n fo

r win

nin

g th

e S

ou

the

ast R

eta

iler

of th

e Y

ea

r Aw

ard

from

An

he

use

r-Bu

sch

an

d th

e fo

llow

ing

Ge

org

ia W

ho

lesa

lers:

AB Beverage • Atlanta Beverage Company • Eagle Rock Distributing • Lagrange Grocery • Leon Farm

er Company • Southern Eagle Distributing

Anheuser-B

ush_Kroger S

E1214.indd 1

11/6/14 9:04 AM

page_73.indd 1 11/6/14 9:43 AM

Page 4: Kroger seroy 2014

74 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

Kroger and Geraldine’s®…Entertaining Friends since 1998

Flavor of Georgia winner “Best Snack Food”

The Classic Southern Snack

Bodacious KroberROY SE 122014.indd 1 10/21/14 1:55 PM

shoppers would benefit from the convenience of purchasing fuel as part of a one-stop shopping experience. Customers who pur-chase gas at Kroger Fuel Centers can take part in the fuel points program and in-stantly save up to $1 per gallon when using a Kroger Plus Card, and they can track their fuel points histo-ry through the Kroger mobile app.

“Kroger prides itself in providing a unique and enjoyable shop-ping experience for all our customers,” Branch said. “This commit-ment, in addition to our Fuel program, ensures our fuel centers provide customers with another convenient, easy op-portunity to save money.”

Distribution centers focus on efficiency

Kroger’s logistics network in-cludes 36 distribution centers, employing a rigorous program of lean process en-gineering to con-tinuously improve the efficiency of the supply chain. The company will soon open a state-of-the-art distribution center on the nearly 1,000-acre Fort Gil-lem property, a for-mer U.S. Army base near Atlanta.

“The new distri-bution center, which will service existing operations in Alabama, Georgia, South Carolina and Tennessee, will create 120 new jobs and be a more than $175 million investment over the next five years,” observed Glynn Jen-kins, public relations director for Kroger’s Atlanta Division. “The new jobs at the Forest Park facil-ity will include warehouse, secu-rity, transportation management

and other maintenance positions.“The new facility will improve

efficiencies, help local economy in the communities we serve and de-liver products to our stores much more quickly,” Jenkins added.

The perishables and frozen food section of the warehouse is tenta-tively scheduled to open in late 2015, and dry grocery will open in the summer of 2016. The new distribution center is expected to improve efficiencies, help the local economy and deliver products to stores more expedi-tiously (see more on the new DC on page 76).

Kroger’s Atlanta Di-vision also operates

four Marketplace stores in Ath-ens, Carrollton, Gainesville and Savannah.

Gainesville was the first Kroger store in Georgia with an apparel department, and also the larg-est Kroger, at 123,000 s.f., in the Southeast, until the Savannah store opened just a few weeks

later, on April 2. It is 125,000 s.f.The Marketplace format rang-

es from 100,000 to 130,000 s.f. and offers shoppers full-service grocery, pharmacy and health & beauty care departments as well as an expanded perishable food offering and a general merchan-dise area that includes depart-ments such as home goods, toys, furniture, apparel and jewelry (see more on this format on page 78).

Kroger Atlanta President Bruce Lucia, Georgia Gov. Nathan Deal and Forest Park Mayor David Lockhart gather at the August groundbreaking for the new distribution center in Forest Park.

Source: The Kroger Co. 2013 Fact Book

Glynn Jenkins, Kroger Atlanta public

relations director

From page 72

“The new facility will improve efficiencies, help local economy in the communities we serve and deliver products to our stores much more quickly.”

—Glynn Jenkins

Kroger Fuel Sales on the Rise

Kroger SEROY copy.indd 74 11/10/14 9:41 AM

Page 5: Kroger seroy 2014

page_75.indd 1 11/5/14 1:47 PM

Page 6: Kroger seroy 2014

76 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

Georgia Gov. Nathan Deal says that Georgia is the ideal lo-cation for Kroger to establish its newest distribution facility. Our interconnected highway and railway system, low cost of do-ing business and highly skilled workforce create a solid foun-dation to better serve Kroger’s markets in the Southeast.”

The city of Forest Park as-sisted Kroger with this new fa-cility. The Fort Gillem property, where the Kroger facility will locate, was officially transferred from the Department of De-fense to the city of Forest Park for this project. The city of For-est Park partnered with master developer Forest Park/Fort Gil-lem Implementation Local Re-development Authority (ILRA) to redevelop the former Army base to be named Gillem Logis-tics Center.

“The city of Forest Park will

see 1,500 new jobs over the next two years, plus new revenue to support critical services for our residents,” said Forest Park Mayor David Lockhart. “Gillem Logistics Center will be the re-gion’s premier, world-class, in-stitution grade, and regional and e-commerce distribution park.”

Kroger has a significant pres-ence throughout Georgia and currently employs more than 24,000 Georgians. The com-pany’s existing operations in-clude two food manufacturing facilities, distribution centers and numerous retail locations in Georgia. Charlie Moseley, se-nior project manager on the lo-gistics, energy, agribusiness and food (LEAF) team at the Geor-gia Department of Economic Development (GDEcD), assisted the company on behalf of the state.

“Leading companies such as Kroger are finding Georgia to be the best place for their distri-

bution operations,” said GDEcD Commissioner Chris Carr. “We are fostering growth in this area and are seeing companies in this industry thrive, thanks to our pro-business resources and competitive business climate.”

Added Kroger’s Glynn Jen-kins, “Kroger is excited to close on 253 acres of property to build a new state-of-the-art distribu-tion center. The 1 million-s.f.

facility will improve efficiencies, help the economy in the com-munities we serve and deliver products to our stores much more quickly. We thank Gov. Deal, the Georgia Department of Economic Development, For-est Park Mayor Lockhart and the city of Forest Park for support-ing Kroger with this project.”

Gov.: Georgia ‘the Ideal Location for Kroger to Establish’ Its New DC

Georgia Gov. Nathan Deal and Kroger Atlanta President Bruce Lucia (center) are among those celebrating the groundbreaking for Kroger Atlanta’s new distribution center south of the city.

Empire Marketing Strategies would like to congratulate the Kroger Atlanta division as

the 2014 Southeast Retailer of the Year.

Your excellence will never expire.

EmpireKrogerROY-122014.indd 1 11/5/14 9:51 AM

“Georgia is the ideal location for Kroger to establish its newest distribution facility. Our interconnected highway and railway system, low cost of doing business and highly skilled workforce create a solid foundation to better serve Kroger’s markets in the Southeast.”

—Georgia Gov. Nathan Deal

An artist’s rendering of the new distribution complex in Forest Park.

Kroger SEROY copy.indd 76 11/10/14 9:41 AM

Page 7: Kroger seroy 2014

page_77.indd 1 11/5/14 1:45 PM

Page 8: Kroger seroy 2014

78 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

by Kristen Cloud/staff writer

Kroger opened what was then its largest store in the Southeast on March 12, 2014—in Gaines-ville, Ga.—just northeast of At-lanta. The 123,000-s.f. Market-place also was the first Kroger store in Georgia with an apparel department and only the sec-ond Kroger Marketplace format store in the Peach State. Kroger has since opened Marketplace stores in Savannah and Athens. The Savannah store, at more than 125,000 s.f., is now consid-ered the largest Kroger in the Southeast.

The grand opening celebra-tion featured Kroger Atlanta

Division President Bruce Lucia, Fred Meyer Jewelry Presi-dent Pete Engel, Georgia Gov. Nathan Deal and other dignitar-ies as well as the local business community.

“Kroger is very excited to open our Marketplace store in Gainesville,” Kroger’s Glynn Jenkins told The Shelby Report then. “The store provides a unique one-stop shopping ex-perience for our customers and has positive economic impact in the community. We are proud to bring 275 new jobs in the area.”

The $22 million Kroger Marketplace in Gainesville aims to be a one-stop destination for

Southeast’s Largest Kroger Opens in Georgia

Gov. Nathan Deal, Store Manager Rex Thayer, Georgia First Lady Sandra Deal and others cut the ceremonial ribbon on

Gainesville’s Kroger Marketplace.

Gainesville’s Kroger Marketplace was the first Kroger in Georgia with an apparel department.

The Fred Meyer Jewelry store is up front in the Gainesville Marketplace.

Please see page 80

Kroger SEROY copy.indd 78 11/10/14 9:42 AM

Page 9: Kroger seroy 2014

page_79.indd 1 11/5/14 4:09 PM

Page 10: Kroger seroy 2014

80 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

home fashion and décor, bed and bath, kitchen and small appliances, home office and toys, in addition to traditional fresh food and groceries. Its ap-parel department offers name brand products like Levi’s and Skechers.

The store also features a num-ber of upscale elements, includ-ing a bistro with a Kroger execu-tive chef, locally owned Pannus Bakery, Nature’s Market, Fred Meyer jewelry, drive-thru phar-macy, extensive general mer-chandise, floral shop, Starbucks and Baby World as well as a fuel center with 18 fueling pumps, including eight diesel.

One of the highlights of the store is its meat and seafood department. Bruce Thomas, division meat specialist, said the seafood department alone boasts 60 varieties.

The store’s manager, Rex Thayer, told the crowd gathered for the grand opening that he looked forward to serving the community.

“In my 20 years of service to Kroger, the excitement ex-pressed from the Gainesville community surpasses anything I’ve experienced before,” he said.

The store was the first tenant in Gainesvlle’s newest shopping center, New Holland Market-place, which is off Jesse Jewell and Limestone parkways near Interstate 985.

Kroger is part of the 287,000-s.f. shopping center, which sits on 56 acres also bounded by White Sulphur Road.

The Gainesville Marketplace is open 6 a.m.-1 a.m.

Congratulationson being named

2014 southeast retailer of the Year!

CentennialFarms SE-ROY 122014.indd 1 11/10/14 10:05 AM

From page 78

The Kroger Marketplace at 1931 Jesse Jewell Parkway in Gainesville (above) was the second in Georgia. The store features a wide variety of produce and

health and beauty care products (shown), among others. The state now is home to four Marketplace stores.

Kroger SEROY copy.indd 80 11/10/14 10:06 AM

Page 11: Kroger seroy 2014

page_81.indd 1 11/5/14 1:49 PM

Page 12: Kroger seroy 2014

82 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

Kroger has a long history of bringing help and hope to the communities it serves. Last year, the Atlanta Division con-tributed more than $7 million in funds, food and products to support local communities. Kroger Atlanta is a commit-ted supporter of The Salvation Army, American Red Cross, The ALS Association, Susan G. Komen and the Muscular Dys-trophy Association (MDA) as well as organizations that pro-mote the advancement of wom-en and minorities.

“Through Kroger’s support, we have been able to provide tens of thousands of women and men in metro Atlanta with ac-cess to lifesaving breast screen-ings, mammograms, diagnostic testing and treatment support,” confirmed Cati Stone of Susan

G. Komen’s Atlan-ta office.

This October, Kroger collected donations from customers at checkout to help meet Komen Atlanta’s goal of raising $142,000 and is matching donations up to $150,000.

Through its Honor Our He-roes Campaign, Kroger Atlanta also encourages local commu-nities to remember their neigh-bors serving the country and engage in showing their sup-port.

“Through Kroger’s support and that of its customers, USO is able to continue to bring needed services to our troops, military, Wounded Warriors and transitioning vets,” said Mary Lou Austin, USO presi-dent. “When it comes to sup-port of local community causes, Kroger is indeed the benchmark of retailers. We at USO Georgia are so proud of our relation-ship with the Atlanta division and congratulate Kroger on be-ing awarded the Retailer of the

Year. This was so deserved.”Perhaps one of the Atlanta

Division’s most recognized partnerships is the Back 2 School program with the Chil-dren’s Restoration Network (CRN). This nonprofit agency focuses on the plight of home-less children and mothers in the Atlanta community, having helped nearly 35,000 children since being founded in 1993.

“Kroger has taken our Back 2 School campaign to a whole new level, putting collection boxes in every Kroger store in Atlanta,” commented Cliff Kin-sey, co-founder of Children’s Restoration Network. “This year, Kroger furnished pre-packaged school supplies that people could purchase at cost. It doesn’t get much bigger than Kroger helping children in their backyard. The Shelby Report

made a great choice in giving Kroger this rec-ognition.”

Also to sup-port education, Kroger spon-sors Teacher Supply give-ways each year,

recognizes Teachers of the Year in several counties and partici-pates in Partners in Education programs, among others.

Kroger also has been a long-time friend of The ALS Asso-ciation of Georgia.

“Every year we partner with Kroger on the Kroger ALS Golf Challenge,” said Liza Nord-mark, manager of corporate partnerships for the ALS Asso-ciation Georgia Chapter. “This year we celebrated the 15th anniversary of the event, rais-ing $173,250 and, to date, have raised over $1.7 million. We are so happy that Kroger is receiv-ing this much-deserved recog-nition for all their impactful ef-forts in the community.”

As food banks across the region look for more ways to meet rising needs of their

communities, Kroger’s Atlanta Division helps feed others in need through its annual “Can Hunger,” “Bringing Hope to the Table, and “Perishable Dona-tion Partnership” programs. The division’s customers, as-sociates and vendor partners helped provide nearly five mil-lion meals to local communities last year.

“Kroger has been a strong and longtime supporter of the Atlanta Community Food Bank (ACFB) in the fight against hunger for many years,” said Amy Hudson, senior commu-

“When it comes to support of local community causes, Kroger is indeed the benchmark of retailers.”

—Mary Lou Austin, president, USO Georgia

CommunityLast year, the Atlanta

Division contributed more than $7 million in funds, food and products to sup-port local communities.

Please see page 84

This year’s Can Hunger food drive runs through Dec. 24.

Kroger SEROY copy.indd 82 11/10/14 9:52 AM

Page 13: Kroger seroy 2014

page_83.indd 1 11/7/14 2:52 PM

Page 14: Kroger seroy 2014

84 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

nications manager for ACFB. ”Kroger’s annual ‘Can Hunger’ campaign runs every holiday season in November and Decem-ber. Last year alone, they provided more than 425,000 pounds of food, enough for 355,000 meals through the campaign.”

Customers purchase $1, $2 and $5 icons to support Can Hunger.

As an ongoing retail donor to ACFB, Kroger Atlanta also supplies meats, produce and non-perishable items on a regu-lar basis for the 80,600 people who seek food assistance every week from partner food pantries and meal programs.

“We recognize many people are hungry every day, and the needs are just as vital in the spring, summer and fall as they are during the holidays,” said Kroger Atlanta’s Glynn Jenkins. “Our Perishable Donation Partnership (PDP) is a proactive approach to relieving hunger and bringing healthy, nutritious food to the hungry. This initiative not only increases the amount of fresh food Kroger donates, it helps improve the diets of individuals and families who depend on hunger relief programs by giving food banks access to a variety of nutritious meats, fruits and vegetables.”

Kroger was the first company in the U.S. to develop a process for these perishable donations.

Approximately 25 years ago, Kroger began providing what was referred to as a “meat recovery” program to the Atlanta Community Food Bank, where the food bank received beef, poultry and pork in refrigerated vehicles.

In 2008, Kroger began operating an expanded version, the PDP.

“For far too long food banks have operated with the food people choose to donate, rather than being able to provide enough healthy, nutritious meals that include meat, fruit, veg-etables and other perishable foods,” said Jenkins.

From page 82

Also participating in the 2014 event: David Harrington, The Kroger Co.; Jessie Tuggle and D.J. Shockley, former Atlanta

Falcons; and Dan Kelly, Northeast Sales.

Golfing to Support the ALS Foundation

At the Kroger/ALS Golf Challenge in May 2014: Ron Coutu, Kyle Branch, Wayne Reynolds, Nancy Scott and Nick, Bruce & Tammy

Lucia, The Kroger Co.

“Every year we partner with Kroger on the Kroger ALS Golf Challenge. This year we celebrated the 15th anniversary of the event, raising $173,250 and, to date, have raised over $1.7 million. We are so happy that Kroger is receiving this much-deserved recognition for all their impactful efforts in the community.”

—Liza Nordmark, manager of corporate partnerships for the ALS Association Georgia Chapter

Kroger SEROY copy.indd 84 11/10/14 9:42 AM

Page 15: Kroger seroy 2014

a toastTO YOU

Thank you for supporTing our brands.Relax RespOnsiblY.®

Corona Extra® Beer. Imported by Crown Imports, Chicago, ILVisit us at www.cbrands.com©2014 Constellation Brands, Inc., Canandaigua, NY

ConstellationBrands SE ROY 122014.indd 1 11/4/14 1:50 PMpage_85.indd 1 11/5/14 1:50 PM

Page 16: Kroger seroy 2014

86 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

A hearty congratulations to Bruce, Charles, Ruben, Mike, Bettina, Anne,

Carla, and the Kroger Atlanta Family! Thank you for supporting local brands, local

people, and your local broker!

Koch & Associates • (770) 218-8911 • www.kochfoodbroker.com

Here’s to 2015, from our family to yours!

Koch SEROY 122014.indd 1 10/31/14 3:38 PM

Kroger strives for excellence in its product offerings, across the board, in every department, both fresh foods and dry goods.

Store brands revampedAfter the “Biggest Brand

Launch in the History of Kroger” in January 2013, Kroger’s natural food store brand, Simple Truth®, is now visible across the entire store, including the meat, pro-duce and deli departments.

Both Simple Truth and Simple Truth Organic were launched in September 2012 and have “been a huge success,” according to Fe-lix Turner, the division’s natural foods merchandiser. “Products marketed under the Simple Truth and Simple Truth Organic brands are free from more than 100 arti-ficial ingredients some customers

have said they do not want in their food.”

Simple Truth Or-ganic products are certified under the U.S. Department of Agriculture’s Nation-al Organic Program. Available Simple Truth items include milk, eggs, meats, produce, trail mix, cereals, sodas, yogurt, chips and grains, among others.

“Our high-quality, affordably priced choices like our Private Se-

lection and Simple Truth brands help us provide innovative products that enable our customers with their health and wellness goals,” said Ru-ben Fernandez, VP of merchandising. “For customers on a budget, we offer a new lineup of entry-level price-point brands, including P$$T… and Heritage Farm that are connect-

ing well with our customers.”“Our shoppers expect us to

provide premium products, at a low price that are equal to or better than na-tional brands in qual-ity,” noted Felix Turner, the division’s natural foods merchandiser. “Kroger is dedicated to fulfilling that expecta-tion, and we are con-stantly striving to intro-duce only the highest quality products.”

Home Sense is an-other brand that ap-pears on paper goods

and other household products.

Natural foods ahot category

The company’s most rapidly growing department, on a per-centage basis, is Kroger’s Natu-ral Foods, “and we it expect it to double in size company-wide in the next five years,” Turner said. “Kroger is committed to offer-ing customers a wide variety of items that are excellent in quality and affordable...Kroger is always listening to our customers for ways to provide the best shop-ping experience. As part of that ongoing evaluation, we learned customers wanted a straightfor-

ward solution to shopping or-ganic food. This is why we intro-duced Simple Truth and Simple Truth Organic.”

More than 400 items are of-fered in more than 45 catego-ries in the Simple Truth and Simple Truth Organic™ brands, and Turner says, “We plan to continue developing innova-tive products that solve unmet needs our customers won’t find anywhere else. Consumers can visit www.simpletruth.com for a list of affordable ‘Free from 101’ options.”

ProductsKroger seeks to provide its shoppers with the best products in every department.

Ruben Fernandez, VP of merchandising

Please see page 88

“Simple Truth’s green circular logo serves a beacon throughout Kroger stores, leading customers to a vast array of affordable organic options, free from more than 100 artificial ingredients.”

—Felix Turner, natural foods merchandiser

Products under Kroger’s P$$T... and Heritage Farm brand names.

Kroger SEROY copy.indd 86 11/10/14 9:42 AM

Page 17: Kroger seroy 2014

2014 Southeast

RETAILER OF THE YEAR

A TOAST

A toast...to the Kroger Atlanta team

from

GA Crown SE ROY 122014.indd 1 11/6/14 9:18 AMpage_87.indd 1 11/6/14 9:18 AM

Page 18: Kroger seroy 2014

88 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@ @

Southeast Retailer of the Year 2014

In addition, “Kroger partners with several local natural foods producers in conjunction with Destiny Organics, the only certified organic distributor in the state of Georgia,” said Turner.

Locally grown produceKroger also seeks to source locally

grown produce, which provides cus-tomers with fresh fruits and vegetables and helps support local economies.

“Kroger is dedicated to supporting locally grown produce to provide our customer with the freshest, most nu-tritious fruits and vegetables in the Southeast,” said George Harter, pro-duce merchandiser. “Consumers also recognize that purchasing vegetables and fruits grown by local farmers has significant advantages, including help-ing the economy in the communities we serve, and delivering produce to our stores much more quickly.”

Turner gave an example of that.“McClellan Farms, a family-owned,

125-acre farm in Cairo, Georgia, brings our stores the freshest squash, zucchini, green peppers, eggplant and cucumbers so that we provide our cus-tomers with local, organic and eco-friendly produce.”

Kroger sets up special displays for

“the best locally grown products we can find,” Turner said. “These fruits and vegetables are the best quality and at the best value for our custom-ers. This partnership ensures our lo-cal farmers are able to provide Kroger customers with the highest quality of fresh produce.”

By sourcing from area growers, the retailer also can deliver produce to its stores more quickly.

“Faster shipping means even fresher produce, because the items are picked and packed at a more mature stage, which ensures our fruits and vegeta-bles taste the best at time of purchase,” Harter said. “Locally grown food also means less fossil fuel burned during preparation and transport—and less energy to refrigerate during transpor-tation, which also promotes sustain-ability.”

Food safety also is a major concern, Harter added.

“Our quality assurance begins with clearly communicating our quality expectations to growers. We expect our suppliers to meet or exceed all in-dustry and regulatory standards. The process continues with quality inspec-tions at Kroger’s warehouse at the time of delivery, so our stores receive the freshest produce as soon as possible.”

From page 86

Kroger SEROY copy.indd 88 11/10/14 9:42 AM

Page 19: Kroger seroy 2014

More Coverage theshelbyreport.com@ DECEMBER 2014 • The Shelby Report of the Southeast 89

Southeast Retailer of the Year 2014

Please see page 90

Kroger is the fifth-largest U.S. pharmacy operator, operating units in 1,947 of its food stores. During fiscal 2013, Kroger phar-macists filled more than 164 million prescriptions at a retail value of approximately $8.3 bil-lion. The merger with Harris Teeter brought an additional

159 pharmacies to the Kroger family.

“Kroger has become a health-care destination where educat-ed and professionally trained pharmacists are easily acces-sible to assist and counsel pa-tients on their medications,” noted David Leitch, pharmacy merchandiser. “Our pharma-cists also provide informa-tion and recommendations for healthy, nutritious food choices.”

The range of services at Kroger pharmacies include im-munizations and health coach-ing services for smoking cessa-tion, diabetes education, fitness, nutrition and weight loss coun-seling.

Leitch says future goals will focus on personalized patient care where pharmacists sched-ule appointments with custom-ers to discuss their health and wellness.

Kroger also is devoted to nur-turing the next generation of pharmacists, who will help the grocer meet its goals of being a health and wellness source for customers.

“We are committed to post-graduate training by partner-ing with colleges of pharmacy to offer community pharmacy residencies, which helps us ex-pand our service to customers,” Leitch said.

Health & Wellness Kroger strives to be ‘a healthcare destination’ via pharmacies and Little Clinics.

“Kroger has become a healthcare destination where educated and professionally trained pharmacists are easily accessible to assist and counsel patients on their medications.”

—David Leitch, pharmacy merchandiser

Kroger SEROY copy.indd 89 11/10/14 9:43 AM

Page 20: Kroger seroy 2014

90 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@ @

Southeast Retailer of the Year 2014

From page 89

The Little ClinicKroger also operates 110 walk-in medical clinics inside

stores—with 55 more scheduled for 2014—through its wholly-owned subsidiary, The Little Clinic® (TLC). Total patient visits grew 38 percent in 2013 vs. 2012.

“The Little Clinic is meeting a need for convenient, af-fordable quality healthcare services in the communities we serve,” said Stephanie Buckley, VP of marketing for TLC, adding that the clinics are “part of Kroger’s commitment to providing our customers with a variety of convenient, low-cost options that make their lives easier.”

While TLC accepts insurance, it also is an affordable al-ternative for those without insurance or who have a high deductible plan, she added.

“We primarily provide care for common family illnesses

like sore throats, seasonal allergy care, cold, flu and other infections,” Buckley said. “The Little Clinic most promi-nently meets patients’ needs when their primary care pro-vider is not accessible or it’s the weekend or after hours. Because patients do not need an appointment, this conve-nience is the No. 1 reason our patients come to us.”

As a byproducts of the Affordable Care Act, more people have health insurance, which makes it “increasingly diffi-cult to schedule an appointment when we don’t feel well,” according to Buckley. “When people are sick, they just want to feel better, not wait hours—or sometimes days— for that appointment to become available. The Little Clinic is able to see patients quickly, determine a diagnosis, rec-ommend a course of treatment and get the patient on his or her way to feeling better fast.”

In fact, “People who would have perhaps previously vis-ited an urgent care or emergency room for a non-emer-gency issue can now receive quick and affordable treat-ment at a retail clinic.”

In addition to a prescription perhaps, TLC patients also can pick up “over-the-counter medications at the pharma-cy, plus all the other get-well supplies they may need like tissues and soup, in one convenient location.”

The level of care provided at Kroger is top-notch.“Our providers are trained and educated to provide a

high-level of comprehensive care,” Buckley said. “The Little Clinic is also focused on preventive and wellness care. Pa-tients can access the clinic for travel health services, health screenings, vaccinations, physicals and tobacco cessation.”

“The Little Clinic is part of Kroger’s commitment to providing our customers with a variety of convenient, low-cost options that make their lives easier. ”

—Stephanie Buckley, VP-marketing, The Little Clinic

Kevin Davis of Kroger store #619 in Griffin, Georgia, was Kroger Atlanta’s Best Bagger representative at the Georgia Food Industry Association (GFIA) convention in July 2014. Davis, a college student, won the contest and will

go on to compete at the NGA Show in Las Vegas in February.

Kroger Atlanta’s Kevin Davis Wins Statewide Best Bagger Contest

Kroger SEROY copy.indd 90 11/10/14 10:22 AM

Page 21: Kroger seroy 2014

More Coverage theshelbyreport.com@ DECEMBER 2014 • The Shelby Report of the Southeast 91

Southeast Retailer of the Year 2014

PET is a trademark of The J.M. Smucker Company, used under license.

Here’s to You, Kroger/Atlanta Southeast 2014 Retailer of the Year

Shelpby Report Ad - Kroger Atlanta 11.14 -edited.indd 1 11/5/14 9:51 AM

People Kroger is committed

to creating job opportunities for current and future employees and to recognizing its current employees for a job well done.

Kroger employs approxi-mately 375,000 full-time and part-time associates. Kroger At-lanta, which operates 186 stores across Georgia, eastern Ala-bama and South Carolina, re-cently hired for 2,000 new per-manent positions to supplement its 26,000-member workforce.

“Our stores also held em-ployment information days to provide interested applicants with more details on the em-ployment opportunities in our division,” said Lori Ennis, tal-ent manager-human resources. “Kroger is committed to creat-ing job opportunities for cur-rent and future employees. Our continued growth allows us to provide our communities with hard-working, customer-cen-tered associates who create the consistently exceptional shop-ping experiences our customers expect and deserve.”

Kroger also offers opportuni-ties for employee advancement, including management train-ing, scholarship and college tu-ition reimbursement programs for part-time and full-time as-sociates who meet eligibility requirements. The retailer has also instituted several employee recognition programs.

“We are committed to high-lighting those associates who consistently provide memo-rable shopping experiences to the communities we serve,” En-nis added. “Some of the ways we recognize our associates include The Shining Star Pro-gram, which showcases associ-ates who consistently exceed at Kroger’s Customer 1st strategy; Department Heads of the Year; Employee of the Month; and specialized name tags to ac-knowledge stellar associates.”

Bruce Lucia, president of Kroger Atlanta, poses in May 2014 with inductees into the company’s President Circle. From left: Brent Kidd, Ed Loy, Vicki Smith, Trish Wheeler, Ruben Fernandez, Bruce Lucia, Dan Portier, Charles Mitchell and Buck Moffett.

Kroger SEROY copy.indd 91 11/10/14 9:43 AM

Page 22: Kroger seroy 2014

92 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@ @

Southeast Retailer of the Year 2014

Since 2000, The Kroger Co. has reduced energy consump-tion by nearly 35 percent. The Kroger family of stores has 557 Energy Star certified locations, with 517 that are eligible to be-come certified.

The Atlanta Division is com-mitted to being on the forefront of sustainability initiatives in-corporating employee training and awareness, equipment opti-mization, and equipment retro-fits and upgrades.

“Energy conservation is un-

questionably of great importance to all of us, since we rely on energy for everything we do every single day,” said Richard Cohen, facility engineer. “Energy supplies are lim-ited and, to main-tain a good qual-ity of life, we must find ways to use energy wisely. We embrace energy conserva-tion because it benefits the lives of future generations, as well as our environment.”

New store construction in-volves designing stores to earn the Energy Star label for Build-ings as well as utilizing the most efficient refrigeration, HVAC and lighting equipment and controls available to the indus-try, Cohen added.

“Refrigeration equipment rep-

resents a significant area of en-ergy consumption in our stores,” he continued. “Therefore we focus on reducing energy con-sumption in the areas of refrig-eration. For example, Variable Speed Drive Motors (VSDs) on fan motors and compressors reduce energy consumption by operating at speeds that vary over time based on changing loads.”

Another important part of Kroger’s commitment to sus-tainability is managing waste.

The company has made sub-stantial invest-ments in tech-nologies that help improve food freshness and developed strong partner-ships with lo-cal food banks through its Perishable Do-

nation Partnership (PDP) pro-gram.

“This is a win-win program that helps our food bank part-ners feed people in need, and keeps product out of landfills,” explained Bill Lohr, retail opera-tions manager. “We have also been testing various methods of diverting organic materials that are unsuitable for donation to keep them out of the landfill as well.”

In the Atlanta area, about 60

stores currently participate in programs that convert waste into compost or animal feed, with that number expected to grow substantially in the future.

“It’s safe to say that whether due to landfill capacity or con-cerns about environmental im-pact, successful organizations will need to think differently about how they approach this part of the business in the fu-ture,” Lohr added. “The overall trend is towards much greater public awareness, not just of ‘waste’ but of ‘sustainability,’ and as customers become more aware of these issues they pre-fer to patronize merchants that recognize and address them. We believe that our commitment to freshness and sustainabil-ity will help set us apart from many competitors in the coming years.”

Kroger Sustainability Stats

Sustainability The Atlanta Division is

committed to being on the forefront of sustainability. It achieves this through equipment optimization, retrofits/upgrades as well as managing waste.

“We believe that our commitment to freshness and sustainability will help set us apart from many competitors in the coming years.”

—Bill Lohr, Kroger Atlanta retail operations manager

Kroger Atlanta:• Recycled 51,487 tons of cardboard in 2013—more than

100 million pounds, or more than 1,000 pounds per store per day. Kroger Atlanta’s recycling program keeps vast quantities of waste out of landfills.

• Recycled approximately 2.7 million pounds of plastic film last year, including plastic bags collected at the front end and wrap from the back room. Kroger encourages customers to use reusable bags, and recycles plastic bags so that these materials don’t end up as waste in a landfill.

• Encourages associates to help save paper by making sure that stores have automatic hand towel dispensers (bat-tery operated), and they are adjusted to the “medium” length setting. The medium setting reduces sheet length and conserves battery life, while dispensing plenty of towels for drying hands. The paper goods Kroger buys for in-store use all have substantial recycled fiber con-tent.

The Kroger Co.: • Has reduced energy consumption by 34 percent since

2000, progressing toward a goal of a 35 percent reduc-tion by 2015.

• Diverts 90 percent or more waste from landfills at more than three fourths of its 38 manufacturing plants.

• Has recycled 35 million pounds of plastic, through its national in-store Bag2Bag recycling program.

• Operates a one-of-a-kind anaerobic digester, which con-verts unsold organics into renewable energy. This system, at Kroger’s Ralphs/Food 4 Less divisions in California, offset an estimated 93 million pounds of food waste in 2013 and generated enough renewable energy to fuel ap-proximately 20 percent of the facility’s electricity needs.

• Has progressed toward its sustainable seafood goals in partnership with the World Wildlife Fund.

Kroger SEROY copy.indd 92 11/10/14 9:43 AM

Page 23: Kroger seroy 2014

More Coverage theshelbyreport.com@ DECEMBER 2014 • The Shelby Report of the Southeast 93

Southeast Retailer of the Year 2014

The NatioNal DistributiNg CompaNyand atlaNta Wholesale WiNe

congratulates the Kroger atlaNta team

2014 southeast retailer of the year!for being selected as the

NationalDistributing SE ROY 122014.indd 1 10/30/14 3:53 PM

The Kroger Co. has been ex-ecuting a business strategy it calls “Customer 1st” for more than a decade. As a result of this approach, the retailer has grown business by increasing customer loyalty to Kroger’s family of stores. The founda-tion of the approach is based on seeking out and listening to customer feedback on ser-vice, product availability, price points and the overall shop-ping experience.

“Our Customer 1st Strategy affords us to better connect with our customers and en-sure they have a great shopping experience every time they shop at Kroger,” said Charles Mitchell, VP of operations for Kroger Atlanta. “The strategy focuses on what matters most to our customers, and making Kroger the shopping destination of their choice. A ‘brand’ is a promise, and Customer 1st is as much as a promise to our customers as it is our business strategy.”

“While we are achieving our primary goals on Customer 1st, we continue to raise the bar on highly satisfying our customers,” noted Randy Waters, Customer 1st manager. “Our team continues to communicate and lead by example to more than 26,000 associ-ates, regardless of where they work in the Atlanta division. In addition, our associates are empowered to make decisions and quickly deliver on our Customer 1st Strategy.”

Kroger’s unprecedented 43 consecutive quarters of positive identical-store sales growth is perhaps the best indication that its Customer 1st Strategy is growing cus-tomer loyalty.

Because of initiatives such as the Customer 1st Strategy, Perishable Donations Pro-gram, Can Hunger, Back 2 School and others mentioned in this report, Kroger Atlanta has truly demonstrated a continual and increasingly strong commitment to customers, local economies and surrounding communities and therefore earned its place as The Shelby Report’s Retailer of the Year.

Charles Mitchell

In March, Kathleen Cates received a $500 gift card as theReceipt Survey Sweepstakes winner.

“Our Customer 1st Strategy affords us to better connect with our customers and ensure they have a great shopping experience every time they shop at Kroger.”

—Charles Mitchell, Kroger Atlanta VP of operations

Customer 1st For more than a decade,

Kroger has been executing its Customer 1st prom-ise, which has resulted in heightened customer loyalty, which has led to growth.

Kroger SEROY copy.indd 93 11/10/14 9:44 AM

Page 24: Kroger seroy 2014

94 The Shelby Report of the Southeast • DECEMBER 2014 More Coverage theshelbyreport.com@

Southeast Retailer of the Year 2014

TheKroger Co.

by theNumbers

• Approximately 40 percent of the corporate brand units sold in Kroger stores are produced in Kroger’s 38 manufacturing plants; the remain-ing corporate brand items are pro-duced to Kroger’s strict specifica-tions by outside manufacturers.

• Kroger’s 16 dairies and two ice cream plants produce all varieties of fluid milk, orange juice, cultured products such as yogurt and cottage cheese, ice cream, novelty treats and non-carbonated beverages.

• Kroger operates two cheese plants that produce natural and pro-cessed cheeses for stores. The Har-ris Teeter Dairy in High Point, North Carolina, was added in January 2014.

• A new facility in Denver to pro-duce milk and other fluid products, including small bottle extended shelf life dairy items, began supply-ing stores in spring 2014.

• Kroger’s two meat plants pro-duce packaged meats, retail meats, sausages and home meal replace-ments.

• Six Kroger bakeries supply bread, cakes, donuts, cookies, ba-gels, muffins, crackers, snacks and rolls to Kroger retail stores and out-side customers. Two frozen dough plants in Bowling Green, Kentucky, and Salt Lake City, Utah, supply frozen cakes and dough to Kroger’s retail stores.

Headquartered in Cincinnati, Ohio, The Kroger Co. is one of the largest retailers in the United States based on annual sales.

At the end of fiscal 2013, Kroger operated, either directly or through its subsidiaries, 2,640 super-markets, 1,240 of which had fuel centers.

Its supermarket banners, in addition to Kroger, include Ralphs, Fred Meyer, King Soopers, Scott’s Food & Pharmacy, Fry’s, Smith’s, QFC, Dillons, Bak-er’s, City Market, Food 4 Less, Harris Teeter, Foods Co., Jay C Food Stores, Ruler Foods and Owen’s. Ap-proximately 45 percent of these supermarkets were operated on company-owned facilities, including some company-owned buildings on leased land.

In addition to supermarkets, Kroger operates (by franchisees or through its subsidiaries) 786 conve-nience stores and 320 fine jewelry stores.

Did you know...Source: Kroger Co. 2013 Fact Book

Kroger SEROY copy.indd 94 11/10/14 9:44 AM

Page 25: Kroger seroy 2014

page_95.indd 1 11/7/14 2:54 PM