barclays-apr11

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Barclays Capital Retail & RestaurantsConference

April 26, 2011


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1

This presentation includes forward-looking statements which are

subject to risks and uncertainties. Actual results might differ

materially from those projected in the forward-looking statements.

Additional information concerning factors that could cause actual

results to materially differ from those in the forward-looking

statements is contained in our Securities and Exchange

Commission filings.

Forward-Looking Statements


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Significant scale with +2,400 stores in 31 states driving $80+billion annual revenues

#1 or #2 market share in 38 of our 42 major markets

Proprietary consumer insights driving strong customer loyalty

Outstanding positive identical store sales momentum

Consistent record of rewarding shareholders through sharerepurchases and dividends

Highly experienced and proven leadership team

Strong balance sheet with significant financial flexibility

Best-In-Class Retailer

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National Presence Across Banners And Formats

3

Supermarkets

Convenience Jewelry Personal FinanceManufacturingPharmacy Prepaid Wireless
http://www.jaycfoods.com/


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4

38 markets With #1 or #2 Share

Note: Figures in brackets represent number of supermarkets per state.

Nearly 85% of the households in the markets where Kroger operates have shopped at aKroger store during the most recent fiscal year

Unparalleled Reach With Leadership In Key Markets

AK(11)

WA

(126)

OR

(55)

MT

(4)

CA

(375)

NV

(55)

UT

(48)

ID

(14)

WY

(9)

AZ

(126)

NM

(27)

TX

(201)

ND

SD

MN

MI

(134)

IL

(61)

OK

OH

(212)

PA

NY

KY

(109)

VA

(62)

TN

(121)

MO

(18)

LA

(9)

IA

IN

(145)

WI

KS

(67)

AR

(35)

NC

(18)

SC

(11)

GA

(175)

WV

(46)

CT

MS

(34)AL

(10)

VT

NH

MA

RI

NJ

DEMD

ME

NE

(12)


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Strengthening Our Competitive Position In Todays

Environment

5

Challenging macro environmentcontinuing to affect consumerbehavior

Increasing importance of privatelabel sales for US food retailers

Re-emergence of inflation followinga deflationary period

Industry Trend Kroger Positioning

Krogers consumer insights andcompetitive pricing have increasedloyal households and driven marketshare gains

Krogers industry leading threetiered private label programdifferentiates Kroger from peersand increases customer loyalty

Krogers ability to pass on productcost inflation has been a modesttailwind for top-line performance Moderate inflation is generally

positive for Krogers business


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Source: Nielsen Homescan Fiscal Year Sales Trends January 29, 2011Note: Figures may not add to 100% due to rounding

19.1%

30.6%23.5%

10.9%

4.3%

1.7%10.1%

FY2007

Kroger Other Food Retailers Mass Warehouse Drug Dollar Other

20.6%

29.6%22.4%

11.2%

4.3%

1.9%

9.9%

FY 2010

(+150bps)

(-100bps)(-110bps)

(+40bps)

(0bps)

(+20bps)

(-20bps)

6

Growing Share In A Highly Competitive Sector


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Invest in ShoppingExperience

Improve Connectionwith Customers

Strong ID SalesGrowth

Operating CostLeverage

7

Customer 1st: A Cycle Of Value Creation


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8

Drives loyal household growth 90% of transactions involve loyalty

card 50% of households in the United

States carry a Kroger card 85% of penetration in Kroger

markets

Global leader in data management,customer analysis and insight-ledplanning Partnership since 2003

Provides significant competitiveadvantage Ability to segment customer

base and design customizedofferings

Ability to target promotionalspending towards mostprofitable customers

Relationship and insightscontinue to evolve

Industry Leading Loyalty Program Provides Unique

Customer Insights

Kroger Plus Card dunnhumby Relationship


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9

Offers our pricesensitivecustomers achoice of basic

products, pricedto fit their budget

Offers practical,economicalsolutions for

everyday needs

Represents themajority of Krogerbranded goods

Great quality ourcustomers expectwith wide breadthof products tomeet their needs

Premium qualitybrand, made fromonly the finest

ingredients

Offers more than1,000 productsranging fromgourmet tomainstream

Compelling Tiered Private Label Strategy Is A

Significant Driver Of Value Creation

Value Banner Brands Private Selection


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Source: Private Label Manufacturing Association 2Q10 data as reported in Barclays Capital U.S. Supermarket Industry Review Fall 2010 and Company Reports

10

Differentiating Kroger From Our Competitors

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Supermarket Industry Kroger

Unit Share Dollar Share


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0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Q4-

03

Q1-

04

Q2-

04

Q3-

04

Q4-

04

Q1-

05

Q2-

05

Q3-

05

Q4-

05

Q1-

06

Q2-

06

Q3-

06

Q4-

06

Q1-

07

Q2-

07

Q3-

07

Q4-

07

Q1-

08

Q2-

08

Q3-

08

Q4-

08

Q1-

09

Q2-

09

Q3-

09

Q4-

09

Q1-10

Q2-10

Q3-10

Q4-10

11

29 Consecutive Quarters Of Positive ID Sales Growth

Kroger ID Supermarket Sales Growth (ex fuel)


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Expand earnings through steady increases in identical sales

together with modest growth in operating margin (ex fuel)

Target annual EPS growth averaging 6% to 8% over a rolling

three- to five-year time horizon Including dividend, target a total shareholder return of ~8% to

10%

Generate an average annual return for shareholders that matches

or exceeds the S&P 500 index with less volatility

1212

Our Growth Strategy


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$ 1.31

$ 1.76

FY2005 FY2010

$60.6

$82.2

FY2005 FY2010

13

5 Year Sales Growth ($bn) 5 Year EPS Growth ($)

Strong Financial Performance Through Downturn

1. Represents Diluted EPS excluding extraordinary items


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2.3 x

1.9 x

FY2000 FY2010

$8.3

$7.3

FY2000 FY2010

Krogers Strong Investment Grade Credit Rating Provides Significant Financial Flexibility

10 Year Net Total Debt

Reduction ($bn) 10 Year Deleveraging 10 Year Share Count Reduction (m)

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Attractive Cash Generation And Capital Structure

1. Defined as Net Total Debt/EBITDA

846

638

FY2000 FY2010

Weighted Avg Shares O/S (Diluted)


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12.6% 17.1%17.9% 21.2% 22.2%

56.8%

120.4%

50.3%

19.4%

48.3%

FY2006 FY2007 FY2008 FY2009 FY2010

Total: $773

Total: $1,623

Total: $864

Total: $456

Total: $795

15Note: Kroger initiated dividend policy in May 2006. Net income excludes extraordinary items

Consistent Record Of Rewarding Shareholders

Through Share Repurchases And Dividends

Yearly Cash Deployment as a % of Net Income ($m)

Dividends Repurchase

Total Payout To Shareholders Has Averaged ~70% Of Net Income Over Past 5 Years


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1616

Fiscal 2011 Annual Guidance

ID supermarket sales growth (ex fuel): 3% to 4%

EPS: $1.80 to $1.92

Q2 & Q3 growth rates below the annual growth rate

Q2 growth rate the lowest of the year


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Significant scale with +2,400 stores in 31 states driving $80+billion annual revenues

#1 or #2 market share in 38 of our 42 major markets

Proprietary consumer insights driving strong customer loyalty Outstanding positive identical store sales momentum

Consistent record of rewarding shareholders through sharerepurchases and dividends

Highly experienced and proven leadership team

Strong balance sheet with significant financial flexibility

Best-In-Class Retailer

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Forward-Looking Statements

The accompanying slides contain certain forward-looking statements about the future performance of the Company. These

statements are based on managements assumptions and beliefs in light of the information currently available to it. These

forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially. Our

ability to achieve identical supermarket sales and earnings growth and earnings per share goals, the timing that those earnings

occur within the year, our ability to deliver shareholder return of 8-10% and to match or exceed that of the S&P 500, and our

ability to continue to deliver shareholder value through dividends and share repurchases, may be affected by: labor disputes,

particularly as the Company seeks to manage health care and pension costs; industry consolidation; pricing and promotional

activities of existing and new competitors, including non-traditional competitors, and the aggressiveness of that competition; our

response to these actions; unexpected changes in product costs; the state of the economy, including interest rates and the

inflationary and deflationary trends in certain commodities; the extent to which our customers exercise caution in their

purchasing behavior in response to economic conditions; the number of shares outstanding; the success of our future growth

plans; goodwill impairment; volatility in our fuel margins; and our ability to generate sales at desirable margins, as well as the

success of our programs designed to increase our identical sales without fuel. In addition, any delays in opening new stores, or

changes in the economic climate could cause us to fall short of our sales and earnings targets. Our ability to increase identical

supermarket sales also could be adversely affected by increased competition and sales shifts to other stores that we operate, aswell as increases in sales of our corporate brand products. Earnings and sales also may be affected by adverse weather

conditions, particularly to the extent that hurricanes, tornadoes, floods, and other conditions disrupt our operations or those of

our suppliers; create shortages in the availability or increases in the cost of products that we sell in our stores or materials and

ingredients we use in our manufacturing facilities; or raise the cost of supplying energy to our various operations. Our results

also will be affected by the inconsistent pace of the economic recovery, consumer confidence, and changes in inflation and

deflation in product and operating costs. Please refer to Krogers reports and filings with the Securities and Exchange

Commission for a further discussion of these risks and uncertainties.

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