For those that are interested (if any..ha) here is a link to the transcript of Kroger's 9/14/10 second quarter earnings report. In the transcript, CED David Dillon says "The competitive environment remains challenging. During the quarter, we saw significant and aggressive promotional pricing at several competitors. Our customers tell us that while price is important, it is not the only factor that influences their shopping decisions. The customer experience matters and that’s why Kroger's strategy incorporates all elements that are important to our customers". Kroger calls their strategy that on focuses on customers their "Customer 1st Strategy" This strategy is desgined to reward loyal customers and is based on listening to what customers and associates say is important to them and acting on their feedback. This strategy focuses on four keys areas of Kroger: employees, prices, products and services, and the overall shopping experience. I believe that this focus on the customer helped Kroger to beat analysts projections for the second quarter. While Kroger could have gained more one time customers by slashing prices on certain products they feel their strategy of focusing on the repeat customer would be more advantageous and profitable. I tend to agree with their strategy.
http://seekingalpha.com/article/225174-kroger-ceo-discusses-q2-2010-results-earnings-call-transcript
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