Jun 21, 2018 • 10:00 am ET

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Presentation
Executive
Rodney McMullen

with Home Chef.

We believe the future of retail will include both physical and digital customer experiences. Everything we are doing today will enhance our ability to provide everyone in America with convenience of shopping for anything, anytime, anywhere. We are incredibly excited that it is Kroger who is bringing Ocado technology to the US for the first time.

The platform includes online ordering, automated fulfillment and home delivery capabilities, so it's a perfect fit with our vision and strategy. We look forward to innovating together with Ocado to enhance Kroger's digital and robotics capabilities. And we are already working to identify the first three sites for development of the new automated warehouse facilities in the US to deploy Ocado's proprietary technology and distribution expertise.

Customers want convenience, simplicity and personalized food experience. Our planned merger with Home Chef will accelerate our ability to deliver exactly this. There is a lot that we admire about Home Chef, their creativity and entrepreneurial energy, and their use of data to connect with customers to name just a few. We believe that by taking over Kroger's meal solutions portfolio, Home Chef will bring our customers even more innovation and delicious offerings so customers can be the hero at meal time.

Pat and his team at Home Chef will be able to leverage Kroger assets both our physical stores and data to drive their business even more, and by joining forces, we can grow bigger together than either of us could have done alone. We continue to execute our digital strategy through our core business as well.

As I said before, the households that participate in our seamless offerings, those who engage with our digital platforms and our physical stores spend more per week than households that do not. And households that purchase from us online spend even more.

We've aggressively growing our existing seamless coverage to reach approximately 75% of our customers. This includes our network of ClickList locations, stores offering home delivery through Instacart and other partners, as well as ship to home capabilities. Our goal is to reach a 100% of our customers with the seamless experience and over time to reach all across America. All the changes we are making to transform our business will make it even easier for families to share meals together. This business strategy enables us to live our Kroger purpose because we know that family who spend share meals together have even a better relationship and if they have children they do better in all aspects of their lives.

Our brand is another example of how we are redefining the grocery customer experience. Kroger customers choose to put more of our brands in their basket and pantries every day. Our brands grew faster than the national brands in nearly every department and gain significant share overall. In the first quarter, our brands made up 28.7% of unit sales and 26.7% of sales dollars. In fact, our brands set the record for the highest ever retail