The Kroger Co. (NYSE:KR) Q3 2017 Earnings Conference Call Transcript

Nov 30, 2017 • 10:00 am ET


The Kroger Co. (NYSE:KR) Q3 2017 Earnings Conference Call Transcript


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Good morning, everyone and welcome to The Kroger Company's Third Quarter Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, today's event is being recorded.At this time, I'd like to turn the conference call over to Ms. Kate Ward, Director of Investor Relations. Ma'am, please go ahead.

Kate Ward

Thanks, Jamie. Good morning and thank you for joining us. (Forward-Looking Cautionary Statements) Both our third quarter press release and our prepared remarks from this conference call will be available on our website at

While there, we encourage you to visit the Events & Presentations page to find the full slide deck outlining Restock Kroger as laid out at our Annual Investor Conference on October 11. Restock Kroger will be the framework we will be using over the next few years to clearly communicate how we plan to serve America through food, inspiration and uplift; and as a result, create shareholder value. After our prepared remarks, we look forward to taking your questions. In order to cover a broad range of topics from as many of you as we can, we ask that you please limit yourself to one question, and one follow-up question, if necessary. Thank you.I will now turn the call over to Kroger's Chairman and CEO, Rodney McMullen.

Rodney McMullen

Thank you, Kate, and good morning, everyone, and thank you for joining us today. With me to review Kroger's third quarter 2017 results is EVP and CFO, Mike Schlotman.

I'd like to thank you for joining us at our 2017 Investor Conference in New York last month where we outlined Restock Kroger, our plan to create shareholder value by redefining how America eats. Food retailing is more exciting than ever, more Americans identify as foodies and customers have more food choices than ever before. In the past, we've defined our market as share of untraditional grocery stores; today we've redefined our market as shared stomach. This sharpens our focus when we look at our industry and our customers. We see anyone who sells food as competitors which doubles the size of our market to $1.5 trillion.

If you're eating, we want to serve you that meal. The fact that Kroger is trusted by more than 60 million households is an incredible competitive advantage. Kroger has competed in an ever-changing retail landscape for 134 years because our touchstone has always been the customer. We place the customer at the center of everything we do, and because of our relentless focus on serving customers, Kroger is uniquely positioned to be the partner they turn to for meals. Restock Kroger has four main drivers; redefine the grocery customer experience, expand partnerships to create customer value, develop talent and live our purpose. These pillars combined will create shareholder value.

Going forward, I plan to highlight an item or two each quarter that we've made headway on. This quarter I'd like to begin by talking about how we're