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.

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Southeast Retailer of the Year 2014 Kroger Atlanta Works to Earn Customers’ Business in a Variety of Ways, Every Day

by Carmel G. Hearn For 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 Alabama 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 hunger 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 Retailer of the Year,” said Ron Johnston, president and publisher of Shelby Publishing Co. “When Bruce Lucia was named Atlanta 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 operations in this report. By examining brand strategies and policies 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 headquartered in Cincinnati, Ohio, is one of the largest retailers in the United 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 announced in September it was hiring for 2,000 new permanent positions to supplement its 26,000-plus work force. Kroger Atlanta also is planning an 82,000-s.f. store near the Lindbergh City Center in Atlanta and a 1-million-s.f. distribution center on the city’s south side.

“Kroger’s Atlanta Division actively seeks opportunities to fulfill the shopping needs of communities across Georgia and the rest of the Atlanta Division,” said Fahmi Hashish, real estate senior manager. “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 includes a variety of assessments, including consumer research and extensive strategic planning to account for a wide number of factors—including location, ease of access, product selection, store features and more. This is an ongoing process.”

On Jan. 28, 2014, the merger between Kroger and Harris Teeter was completed, bringing 227 new stores to the Kroger family.

These stores are located in fastgrowing 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 Harris Teeter,” noted Hashish. “We are pleased that our integration is going well and that we are bringing 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 deliver a high return on investment and seem to have a positive effect on overall store sales. For example, 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 bringing the best products and services to the communities we serve,” explained Kyle Branch, Kroger Atlanta Fuel Center manager. “As we actively sought, and still seek, opportunities to provide our shoppers with convenient locations and amenities, Kroger Fuel Centers were established to provide yet another great service to enhance our shoppers’ experience.

“Kroger customers have responded 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

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Congratulations to the Kroger Atlanta Division for winning the Southeast Retailer of the Year Award from Anheuser-Busch and the following Georgia Wholesalers:

AB Beverage • Atlanta Beverage Company • Eagle Rock Distributing • Lagrange Grocery • Leon Farmer Company • Southern Eagle Distributing

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Southeast Retailer of the Year 2014 and other maintenance positions.

“The new facility will improve shoppers would benefit from the efficiencies, help local economy in convenience of purchasing fuel the communities we serve and deas part of a one-stop shopping liver products to our stores much experience. Customers who purmore quickly, ” Jenkins added. chase gas at Kroger Fuel Centers The perishables and frozen can take part in the fuel food section of the points program and inwarehouse is tentastantly save up to $1 tively scheduled to per gallon when using open in late 2015, and a Kroger Plus Card, dry grocery will open and they can track in the summer of 2016. their fuel points histoThe new distribution ry through the Kroger center is expected to mobile app. improve efficiencies, “Kroger prides itself help the local economy in providing a unique and deliver products and enjoyable shopto stores more expediping experience for all Glynn Jenkins, our customers,” Branch Kroger Atlanta public tiously (see more on the new DC on page 76). said. “This commitrelations director Kroger’s Atlanta Diment, in addition to vision also operates our Fuel program, ensures our four Marketplace stores in Athfuel centers provide customers ens, Carrollton, Gainesville and with another convenient, easy opSavannah. portunity to save money.”

Gainesville was the first Kroger store in Georgia with an apparel Distribution centers department, and also the largfocus on efficiency est Kroger, at 123,000 s.f., in the Kroger’s logistics network in- Southeast, until the Savannah cludes 36 distribution centers, store opened just a few weeks employing a rigorous program of lean process engineering to continuously improve the efficiency of the supply chain. The company will soon open a state-ofthe-art distribution center on the nearly 1,000-acre Fort Gillem property, a former U.S. Army base —Glynn Jenkins near Atlanta.

“The new distribution center, which will service later, on April 2. It is 125,000 s.f. existing operations in Alabama, The Marketplace format rangGeorgia, South Carolina and es from 100,000 to 130,000 s.f.

Tennessee, will create 120 new and offers shoppers full-service jobs and be a more than $175 grocery, pharmacy and health & million investment over the next beauty care departments as well five years,” observed Glynn Jen- as an expanded perishable food kins, public relations director for offering and a general merchanKroger’s Atlanta Division. “The dise area that includes departnew jobs at the Forest Park facil- ments such as home goods, toys, ity will include warehouse, secu- furniture, apparel and jewelry (see rity, transportation management more on this format on page 78).

From page 72

Kroger Fuel Sales on the Rise

Source: The Kroger Co. 2013 Fact Book

Kroger and Geraldine’s®…Entertaining Friends since 1998

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

Flavor of Georgia winner “Best Snack Food” The Classic Southern Snack

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.

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Southeast Retailer of the Year 2014 Gov.: Georgia ‘the Ideal Location for Kroger to Establish’ Its New DC Georgia Gov. Nathan Deal says that 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.”

The city of Forest Park assisted Kroger with this new facility. The Fort Gillem property, where the Kroger facility will locate, was officially transferred from the Department of Defense to the city of Forest Park for this project. The city of Forest Park partnered with master developer Forest Park/Fort Gillem Implementation Local Redevelopment Authority (ILRA) to redevelop the former Army base to be named Gillem Logistics 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 region’s premier, world-class, institution grade, and regional and e-commerce distribution park.”

Kroger has a significant presence throughout Georgia and currently employs more than 24,000 Georgians. The company’s existing operations include two food manufacturing facilities, distribution centers and numerous retail locations in Georgia. Charlie Moseley, senior project manager on the logistics, energy, agribusiness and food (LEAF) team at the Georgia Department of Economic Development (GDEcD), assisted the company on behalf of the state.

“Leading companies such as

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.

Kroger are finding Georgia to be the best place for their distri-

Your excellence will never expire.

Empire Marketing Strategies would like to congratulate the Kroger Atlanta division as the 2014 Southeast Retailer of the Year.

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 Jenkins, “Kroger is excited to close on 253 acres of property to build a new state-of-the-art distribution center. The 1 million-s.f.

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

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

“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

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Southeast Retailer of the Year 2014

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.

Southeast’s Largest Kroger Opens in Georgia

by Kristen Cloud/staff writer Kroger opened what was then its largest store in the Southeast on March 12, 2014—in Gainesville, Ga.—just northeast of Atlanta. The 123,000-s.f. Marketplace also was the first Kroger store in Georgia with an apparel department and only the second 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 considered the largest Kroger in the Southeast.

The grand opening celebration featured Kroger Atlanta

Division President Bruce ­Lucia, Fred Meyer Jewelry President Pete Engel, Georgia Gov. ­Nathan Deal and other dignitaries 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 experience 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 Please see page 80

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

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Southeast Retailer of the Year 2014

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.

Congratulations on being named

2014 southeast retailer of the Year!

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

The store also features a number of upscale elements, including a bistro with a Kroger executive chef, locally owned Pannus Bakery, Nature’s Market, Fred Meyer jewelry, drive-thru pharmacy, extensive general merchandise, 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 expressed 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 Marketplace, which is off Jesse Jewell and Limestone parkways near Interstate 985.

Kroger is part of the 287,000s.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.

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Southeast Retailer of the Year 2014 Community Last year, the Atlanta Division contributed more than $7 million in funds, food and products to support local communities.

Kroger has a long history of bringing help and hope to the communities it serves. Last year, the Atlanta Division contributed more than $7 million in funds, food and products to support local communities.

Kroger Atlanta is a committed supporter of The Salvation Army, American Red Cross, The ALS Association, Susan G. Komen and the Muscular Dystrophy Association (MDA) as well as organizations that promote the advancement of women and minorities.

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

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

G. Komen’s Atlanmade a great choice in giving ta office.

Kroger this recThis ­O ctober, Kroger collected ognition.” donations from Also to supcustomers at port education, checkout to help Kroger spon—Mary Lou Austin, president, USO Georgia meet ­Komen sors Teacher Atlanta’s goal of ­ Supply giveYear. This was so deserved.” raising $142,000 ways each year, Perhaps one of the Atlanta recognizes Teachers of the Year and is matching donations up Division’s most recognized in several counties and particito $150,000. partnerships is the Back 2 pates in Partners in Education Through its Honor Our HeSchool program with the Chil- programs, among others. roes Campaign, Kroger Atlanta dren’s Restoration Network also encourages local commuKroger also has been a long(CRN).

This nonprofit agency time friend of The ALS Assonities to remember their neighbors serving the country and focuses on the plight of home- ciation of Georgia. engage in showing their sup- less children and mothers in “Every year we partner with the Atlanta community, having Kroger on the Kroger ALS Golf port.

“Through Kroger’s support helped nearly 35,000 children Challenge,” said Liza Nordand that of its customers, USO since being founded in 1993. mark, manager of corporate “Kroger has taken our Back partnerships for the ALS Assois able to continue to bring needed services to our troops, 2 School campaign to a whole ciation Georgia Chapter. “This military, Wounded Warriors new level, putting collection year we celebrated the 15th and transitioning vets,” said boxes in every Kroger store in anniversary of the event, raisMary Lou Austin, USO presi- Atlanta,” commented Cliff Kin- ing $173,250 and, to date, have dent. “When it comes to sup- sey, co-founder of Children’s raised over $1.7 million. We are port of local community causes, Restoration Network. “This so happy that Kroger is receivKroger is indeed the benchmark year, Kroger furnished pre- ing this much-deserved recogof retailers. We at USO Georgia packaged school supplies that nition for all their impactful efare so proud of our relation- people could purchase at cost. forts in the community.” ship with the Atlanta division It doesn’t get much bigger than As food banks across the and congratulate Kroger on be- Kroger helping children in their region look for more ways ­eport to meet rising needs of their ing awarded the Retailer of the backyard. The Shelby R

communities, Kroger’s Atlanta Division helps feed others in need through its annual “Can Hunger,” “Bringing Hope to the Table, and “Perishable Donation Partnership” programs.

The division’s customers, associates and vendor partners helped provide nearly five million 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 commuPlease see page 84

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

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Southeast Retailer of the Year 2014 From page 82

nications manager for ACFB. ”Kroger’s annual ‘Can Hunger’ campaign runs every holiday season in November and December. 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 regular 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, vegetables and other perishable foods,” said Jenkins.

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“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 muchdeserved recognition for all their impactful efforts in the community.”

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

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.

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.

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a toast

TO YOU

Thank you for supporTing our brands.

Relax RespOnsiblY.®

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

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Southeast Retailer of the Year 2014 Products

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

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

Store brands revamped

After 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, produce and deli departments.

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

lection and Simple Truth have said they do not brands help us provide want in their food.”

Simple Truth Orinnovative products that ganic products are enable our customers certified under the with their health and U.S. Department of wellness goals,” said RuAgriculture’s Nationben Fernandez, VP of al Organic Program. merchandising.

“For Available Simple customers on a budget, Truth items include we offer a new lineup milk, eggs, meats, of entry-level priceproduce, trail mix, point brands, including Ruben Fernandez, cereals, sodas, yogurt, P$$T… and Heritage VP of merchandising chips and grains, Farm that are connectamong others. ing well with our customers.”

“Our high-quality, affordably “Our shoppers expect us to priced choices like our Private Se- provide premium products, at a low price that are equal to or better than national brands in quality,” noted Felix Turner, the division’s natural foods merchandiser.

“Kroger is dedicated to fulfilling that expectation, and we are constantly striving to introduce only the highest quality products.”

Home Sense is another brand that apProducts under Kroger’s P$$T... and Heritage pears on paper goods and other household Farm brand names. products.

“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

Natural foods a hot category

The company’s most rapidly growing department, on a percentage basis, is Kroger’s Natural Foods, “and we it expect it to double in size company-wide in the next five years,” Turner said.

“Kroger is committed to offering 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 shopping experience. As part of that ongoing evaluation, we learned customers wanted a straightfor-

ward solution to shopping organic food. This is why we introduced Simple Truth and Simple Truth Organic.”

More than 400 items are offered in more than 45 categories in the Simple Truth and Simple Truth Organic™ brands, and Turner says, “We plan to continue developing innovative 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.”

Please see page 88

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!

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

Koch & Associates • (770) 218-8911 • www.kochfoodbroker.com Kroger SEROY copy.indd 86 Koch SEROY 122014.indd 1

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A toast... to the Kroger Atlanta team

2014

Southeast

RETAILER OF THE YEAR

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Southeast Retailer of the Year 2014 From page 86

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 produce

Kroger also seeks to source locally grown produce, which provides customers 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 nutritious fruits and vegetables in the Southeast,” said George Harter, produce merchandiser. “Consumers also recognize that purchasing vegetables and fruits grown by local farmers has significant advantages, including helping 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 customers with local, organic and ecofriendly produce.”

Kroger sets up special displays for

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“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 customers. This partnership ensures our local 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 vegetables 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 transportation, which also promotes sustainability.”

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 industry and regulatory standards. The process continues with quality inspections at Kroger’s warehouse at the time of delivery, so our stores receive the freshest produce as soon as possible.”

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Southeast Retailer of the Year 2014 Health & Wellness

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

Kroger is the fifth-largest U.S. pharmacy operator, operating units in 1,947 of its food stores.

During fiscal 2013, Kroger pharmacists filled more than 164 million prescriptions at a retail value of approximately $8.3 billion. The merger with Harris Teeter brought an additional

159 pharmacies to the Kroger family.

“Kroger has become a healthcare destination where educated and professionally trained pharmacists are easily accessible to assist and counsel patients on their medications,” noted David Leitch, pharmacy merchandiser. “Our pharmacists also provide information and recommendations for healthy, nutritious food choices.”

The range of services at Kroger pharmacies include immunizations and health coaching services for smoking cessation, diabetes education, fitness, nutrition and weight loss counseling.

Leitch says future goals will focus on personalized patient care where pharmacists schedule appointments with customers to discuss their health and wellness.

Kroger also is devoted to nurturing 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 postgraduate training by partnering with colleges of pharmacy to offer community pharmacy residencies, which helps us expand our service to customers,” Leitch said.

Please see page 90

“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

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Southeast Retailer of the Year 2014 From page 89

The Little Clinic

Kroger 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, affordable 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 alternative 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 prominently meets patients’ needs when their primary care provider is not accessible or it’s the weekend or after hours.

Because patients do not need an appointment, this convenience 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 difficult 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, recommend 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 visited an urgent care or emergency room for a non-emergency issue can now receive quick and affordable treatment at a retail clinic.”

In addition to a prescription perhaps, TLC patients also can pick up “over-the-counter medications at the pharmacy, 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. Patients 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

Kroger Atlanta’s Kevin Davis Wins Statewide Best Bagger Contest

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.

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Southeast Retailer of the Year 2014 People Kroger is committed to creating job opportunities for current and future employees and to recognizing its current employees for a job well done.

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 employs approximately 375,000 full-time and part-time associates. Kroger Atlanta, which operates 186 stores across Georgia, eastern Alabama and South Carolina, recently hired for 2,000 new permanent positions to supplement its 26,000-member workforce.

“Our stores also held employment information days to provide interested applicants with more details on the employment opportunities in our division,” said Lori Ennis, talent manager-human resources.

“Kroger is committed to creating job opportunities for current and future employees. Our continued growth allows us to provide our communities with hard-working, customer-centered associates who create the consistently exceptional shopping experiences our customers expect and deserve.”

Kroger also offers opportunities for employee advancement, including management training, scholarship and college tuition reimbursement programs for part-time and full-time associates who meet eligibility requirements. The retailer has also instituted several employee recognition programs.

“We are committed to highlighting those associates who consistently provide memorable shopping experiences to the communities we serve,” Ennis added. “Some of the ways we recognize our associates include The Shining Star Program, which showcases associates who consistently exceed at Kroger’s Customer 1st strategy; Department Heads of the Year; Employee of the Month; and specialized name tags to acknowledge stellar associates.”

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

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

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Southeast Retailer of the Year 2014 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.

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

The Atlanta Division is committed to being on the forefront of sustainability initiatives incorporating employee training and awareness, equipment optimization, and equipment retrofits and upgrades.

“Energy conservation is un-

The company questionably of has made subgreat importance to all of us, since stantial investwe rely on energy ments in technologies that for everything we help improve do every single food freshness day,” said Richard and developed Cohen, facility engineer. “Energy strong partnersupplies are lim—Bill Lohr, Kroger Atlanta retail operations manager ships with loited and, to maincal food banks tain a good qualthrough its ity of life, we must Perishable Doresents a significant area of enfind ways to use energy wisely. ergy consumption in our stores,” nation Partnership (PDP) proWe embrace energy conserva- he continued. “Therefore we gram. tion because it benefits the lives focus on reducing energy con“This is a win-win program of future generations, as well as sumption in the areas of refrig- that helps our food bank partour environment.” eration. For example, Variable ners feed people in need, and New store construction in- Speed Drive Motors (VSDs) on keeps product out of landfills,” volves designing stores to earn fan motors and compressors explained Bill Lohr, retail operathe Energy Star label for Build- reduce energy consumption by tions manager. “We have also ings as well as utilizing the most operating at speeds that vary been testing various methods of efficient refrigeration, HVAC over time based on changing diverting organic materials that are unsuitable for donation to and lighting equipment and loads.” controls available to the indusAnother important part of keep them out of the landfill as try, Cohen added.

Kroger’s commitment to sus- well.”

In the Atlanta area, about 60 “Refrigeration equipment rep- tainability is managing waste.

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

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 concerns about environmental impact, successful organizations will need to think differently about how they approach this part of the business in the future,” 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 prefer to patronize merchants that recognize and address them. We believe that our commitment to freshness and sustainability will help set us apart from many competitors in the coming years.”

Kroger Sustainability Stats 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 (battery 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 content.

The Kroger Co.:

• Has reduced energy consumption by 34 percent since 2000, progressing toward a goal of a 35 percent reduction 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 converts 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 approximately 20 percent of the facility’s electricity needs.

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

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Southeast Retailer of the Year 2014 The Kroger Co. has been executing a business strategy it calls “Customer 1st” for more For more than a decade, than a decade. As a result of Kroger has been executing this approach, the retailer has its Customer 1st promgrown business by increasing ise, which has resulted customer loyalty to Kroger’s in heightened customer family of stores. The foundaloyalty, which has led to tion of the approach is based growth. on seeking out and listening to customer feedback on service, product availability, price Charles Mitchell points and the overall shopping experience.

“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,” 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 associates, 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 customer loyalty.

Because of initiatives such as the Customer 1st Strategy, Perishable Donations Program, 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.

Customer 1st

The

“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

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

NatioNal DistributiNg CompaNy and atlaNta Wholesale WiNe congratulates

the

Kroger atlaNta team for being selected as the

2014 southeast

retailer of the year!

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Southeast Retailer of the Year 2014

The Kroger Co. by the Numbers 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, Baker’s, City Market, Food 4 Less, Harris Teeter, Foods Co., Jay C Food Stores, Ruler Foods and Owen’s. Approximately 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 convenience stores and 320 fine jewelry stores.

Source: Kroger Co. 2013 Fact Book

Did you know...

• Approximately 40 percent of the corporate brand units sold in Kroger stores are produced in Kroger’s 38 manufacturing plants; the remaining corporate brand items are produced to Kroger’s strict specifications 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 processed cheeses for stores. The Harris Teeter Dairy in High Point, North Carolina, was added in J­anuary 2014.

• A new facility in Denver to produce milk and other fluid products, including small bottle extended shelf life dairy items, began supplying stores in spring 2014.

• Kroger’s two meat plants produce packaged meats, retail meats, sausages and home meal replacements.

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

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