KROGER DETAILS THREE-YEAR GROWTH PLAN

CINCINNATI -- Following a record-setting year, Kroger Co. has established an aggressive three-year plan to deliver substantial value to shareholders, Joseph A. Pichler, chairman and chief executive officer, said here last week at the company's annual meeting.

rofitability of existing Kroger facilities.

Implementing programs that reduce costs and operating expenses while allowing Kroger operators the flexibility to meet local competition.

Pichler noted that first-quarter results produced record sales, earnings, operating cash flow and earnings per share, "so, clearly, the company's strategy is working very well." Kroger's business objective is to generate annual increases of 13% to 15% in earnings per share averaged over each three-year period, Pichler said, "and management is confident Kroger can produce this consistent growth because our company possesses several strategic advantages."

One advantage, he said, is the combination-store format -- "the most effective format for today's time-pressed shoppers."

He said Kroger will invest $750 million to $800 million in its store base and real estate this year, compared with $646 million a year ago. The money will be used to open, relocate or expand 90 to 100 supermarkets and remodel 60 stores, compared with 96 new or expanded stores and 48 remodelings a year ago, he said.