Diversity

We value America's diversity and constantly strive to reflect the diversity of the communities where we operate, in our associates and the companies who are our business partners.

We are committed to creating a Customer 1 st inclusive business culture where associates are engaged in putting every customer first in all we do. This Customer 1 st inclusive business culture welcomes and embraces our differences, encourages involvement and provides equal access to opportunities and information. Having a diverse workforce is an essential first step in creating an inclusive culture.

Every Kroger division and business unit has programs in place to ensure fairness and equal opportunities for all. Inclusion training is provided to all associates. Every division has an inclusion council composed of associates from various levels. These councils work on many projects that reflect our core values of honesty, integrity, respect, diversity, inclusion and safety.

Women and people of color are slightly more than half of the managers and 60% of the professionals in our Company. We are committed to continuous improvement in the representation of women and people of color in our management ranks, including the highest levels of the Company and our Board of Directors. Our successor planning process requires managers and department heads to provide annual updates on progress made in the placement and promotion of women and people of color.

Key job categories with the percentage of female and minority associates as of late 2005 are: