Source: Company reports

Rodney McMullen, CEO

• McMullen’s four priorities + digital for capital investment are 1) “friendly and fresh” (focusing on friendly service and fresh products), 2) fill-in markets (adding additional stores to existing markets and improving assets), 3) productivity (investing in technology, such as a new temperature monitors that alert employees when product is not at the desired temperature), 4) “What’s for dinner?” (improving customer offerings) and +digital.

Michael Schlotman, CFO and EVP

• Schlotman expects capital investment to be at the high end of the $3.0 to $3.3 billion range. Investments include approximately 75 to 85 major projects covering new stores, expansions and relocations; 180 to 200 major remodels; and other investments in technology and infrastructure.

Michael Donnelly, EVP of Merchandising

• Donnelly focused on Kroger’s ability to use analytics to make decisions and listen to customers. Simple Truth—a line of natural and organic food products—was launched based on customer requests for more healthy and organic alternatives at an affordable price. Three years later, Simple Truth is expected to be a $1.5 billion brand, with millennials driving the greatest growth. Donnelly also said that, at this point in the quarter, Kroger is at the higher end of its 4% to 5% same store sales growth guidance.

Stuart Aitken, CEO of 84.51°

• 51° is an analytics company acquired by Kroger in April 2015. The company is focused on using analytics to enable better digital decision making. For example, purchasing data can help Kroger provide customers with relevant digital coupons. Aitken said, “We see a 15% increase in downloads when the coupons are personally sorted.”

Kevin Dougherty, Group VP of Digital and Vitacost

• Dougherty discussed the strong progress the company has seen in the digital channel. He stressed the importance of tapping into the smartphone market and investing in consumer analytics such as the company has done through the 84.51° acquisition.

Tim Massa, Group VP of Human Resources and Labor Relations

• Massa articulated Kroger’s “people strategy,” which relies on hiring quality candidates faster; enabling new hires for success; retaining, engaging and developing associates at all levels; and appreciating associates for making a difference.