The Kroger Co.

The Kroger Co.

 

The Kroger Co., incorporated in 1902, operates retail food and drug stores, multi-department stores, jewelry stores and convenience stores throughout the United States. The Company also manufactures and processes some of the food for sale in its supermarkets. As of February 3, 2007, the Company operated, either directly or through its subsidiaries, 2,468 supermarkets and multi-department stores under two dozen banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith's, Fry's, Fry's Marketplace, Dillons, QFC and City Market. Of these stores, 631 had fuel centers. Approximately 39% of these supermarkets were operated in Company-owned facilities, including some Company-owned buildings on leased land. As of February 3, 2007, The Kroger Co., either directly or through subsidiaries, operated 779 convenience stores and 412 fine jewelry stores.

 

The Company's supermarkets are generally operated under formats, which include combination food and drug stores (combo stores), multi-department stores, price impact warehouses or marketplace stores. The combo stores are the primary food store format. The combo stores offers specialty departments, which include natural food and organic sections, pharmacies, general merchandise, pet centers, and perishables, such as seafood and organic produce. Many combo stores include a fuel center. Multi-department stores are significantly larger in size than combo stores. In addition to the departments offered at a typical combo store, multi-department stores sell a selection of general merchandise items, such as apparel, home fashion and furnishings, electronics, automotive, toys and fine jewelry. Many multi-department stores include a fuel center. Price impact warehouse stores offer a no-frills, low-cost warehouse format and feature everyday low prices plus promotions for a selection of grocery, and health and beauty care items. Meat, dairy, baked goods and fresh produce items are also offered. The average size of a price impact warehouse store is similar to that of a combo store.

The Kroger Co.'s fine jewelry stores are substantially operated in leased locations. As of February 3, 2007, its subsidiaries operated 687 of the convenience stores, while 92 were operated through franchise agreements. Approximately 44% of the convenience stores operated by subsidiaries were operated in Company-owned facilities. The convenience stores offer a limited assortment of staple food items and general merchandise, and in most cases, sell gasoline. As of February 3, 2007, the Company operated 42 manufacturing plants, which supplied approximately 55% of the corporate brand units sold in the Company's retail outlets. These plants consisted of 18 dairies, 11 deli or bakery plants, five grocery product plants, three beverage plants, three meat plants and two cheese plants.