May 2012 www.greatpeople.me

N E W S A N D I N F O R M A T I O N F O R G R E A T P E O P L E L I K E Y O U

great people

Each quarter we survey our customers to find out what they’re saying about us and our competitors in each of our markets. We also invite every customer to comment on each transaction by providing opportuni-ties for feedback at the bottom of every receipt. Between the phone and online surveys, we measure our customer satisfaction results and rate our performance in all of our key markets. Throughout the second half of 2011 we saw steady gains across the company - which is incredible! In the first quarter of this year, however, we’ve held on to last year’s improvements, but have stayed fairly flat.

In our latest customer tracker survey, our Las Vegas-area stores pulled solid gains while Albuquerque stores showed modest improvement. The Salt Lake City-area stores declined in select areas of measurement, but we are committed to addressing these areas of concern to restore our positive momentum across the board.

As a company, we will be successful if we focus on our Customer 1st strategy and the 4-Keys: get the products customers want, plus a little; good prices; providing a shopping experience that makes our customers want to return; and focusing on our great people. Smith’s associates are truly great people. We recognize your hard work and appreciate all that you do for our company and our customers. At the end of the day, we know that it’s our associates that bring our cus-tomers back to our stores. Whether you’re in the deli, a checkstand, the dairy or anywhere in between, your interactions with our customers determine their satisfac-tion. Thank you for making Smith’s a great place to work and shop. We realize together we all make the difference.

Each quarter we survey our customers to find out what they’re saying Each quarter we survey our customers to find out what they’re saying

Mark Tuffin,President

Smith’s is committed to providing the freshest products, best customer service and fastest check-out in the industry and our customers are noticing the difference.

Together we makethe Difference

great peopleDaniel Allen, Store #346

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At Smith’s, we care about our great people. That’s why we want our associates to be stron-ger, healthier and happier. To help promote better health and integrate healthy habits, Smith’sFit was introduced across the division last spring.

To date, more than 5,000 associates throughout Smith’s have lost more than 32,000 pounds – and losing has never felt so good!

To participate, employees must sign up for the 14-week program in teams of three to five. Each team must have a name and submit all necessary paperwork and release forms to local champions at each store or office location. Champions will weigh all participants each week and chart each team’s progress.

Employees within healthy ranges of their Body Mass Index (BMI) may enroll in the maintenance program for a chance to win cash prizes, too!

At the end of each Smith’sFit session, the teams and individual participants who lost the most weight win cash prizes and other incentives.

During each session, our associates have had phenomenal success with their weight-loss main-tenance goals and they are eager to see others reach equal levels of success.

“This is a great program,” said Andy Hale, an em-ployee at the Layton dairy facility. “My friends and family outside of Smith’s, some who have weight to lose, are so jealous that a company like Smith’s would have a program for their employees like this. It is such a motivator and so effective. I hope you guys can keep it going.”

Smith’sFit was designed to help make associates healthier and happier by providing a fun, safe environment to lose excess weight or encourage maintenance of a healthy weight. Now, as Smith’s

launches its fourth session this month, we are adding another program, “I Quit with Smith’s Fit,” to support associates who want to quit using to-bacco products, too.

This challenge offers associates who use nicotine products a motivating way to become nicotine free. Associates develop their own quit plan and work that plan over the course of the Smith’sFit Challenge.

As part of their plan, employees set a date to be tobacco free and then work towards their goal. Associates may include Step Therapy (Chantix), and nicotine-replacement products (gum, candy, etc.) or can quit “cold turkey.”

Similar to the weight loss program, there will be incentives for associates who test nicotine free by the end of the program as well as a chance at win-ning cash prizes!

More than 5,000 Associates Have Lost 32,000 LBS.

Andy Hale, Layton Dairy

Lost 73 lbs.Callie Ward, Store #87

Lost 16 lbs.Josiah Howarth, Store #376

Lost 105 lbs.

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More than 5,000 Associates Have Lost 32,000 LBS.

Almost everyone who wants to lose weight wants to do it quickly. This might not be the best way, however. The safest way to lose weight, and the one most likely to keep the weight off once lost, is a slower, more consistent weight-loss plan. Remembering your body’s needs is the best way to lose weight. After all, in the long run, losing weight is all about your health!

Important Things To Remember:1) Adults need 30 minutes of physical activity most days to maintain weight.2) Adults need 60-90 minutes of physical activity most days to lose excess weight.3) Eat plenty of low-calorie vegetables to help you feel full.4) Drink plenty of water (limit soda, beer and other alcohol).5) Remove tempting treats and foods from your home.6) Stay busy.7) Always eat three meals and one snack daily – no skipping meals!

source - WebMD.com

2012 Spring and Summer Smith’sFit

Top 10 Weight Loss Participants 1) Morris Blowers - Layton DC - 26.06% 2) Andrew Hale – Layton Dairy Mfg. – 25.26% 3) Casey Forsberg – Layton Dairy Mfg. – 25.00% 4) Michael Langford – Layton Dairy Mfg. – 24.17% 5) Briant Katilus – Store #63 – 21.52% 6) Wendy Bittner – Store #182 – 21.02% 7) Leanne Carver – Store #87 – 20.08% 8) Evelyn Martinez – Store #338 – 19.63% 9) Josiah Howarth – Store #376 – 17.90%10) Christopher Carrasco – Store #496 – 17.83%

Drawing Weight Maintenance Winners 1) Dustin Underwood - Store #172 2) David Huffer – Store #377 3) Marie Penrod – Store #144 4) Lisa Nye – Store #344 5) Jesus Sandoval – Layton Bakery 6) Walter Washington Jr – Store #377 7) Sharlene Bailey – Store #495 8) K Bowman – Store #172 9) Timothy Barney – Layton Distribution 10) Teresa Martinez – Store #66

CONGRATULATIONS!

Nicotine-FreeProgram Incentives

Drawing for ten lucky winners $250 each

Weight Maintenance Program Incentives

Drawing for ten lucky winners $250 each

**All locations are combined for the overall maintenance individual awards.**

Weight LossProgram Incentives

1st Place = $1000

2nd Place = $900

3rd Place = $800

4th Place = $700

5th Place = $600

6th Place = $500

7th Place = $400

8th Place = $300

9th Place = $200

10th Place = $100

**Top 10 weight loss participants will receive cash prizes**

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Max joined the grocery business in 1952 as a bagger for Grand Central in Salt Lake City; he was 16 years old.

Over the last six decades he’s worked in five different stores and seen the company he loves evolve through three different acquisitions and mergers (Fred Meyer, Smith’s and Kroger).

During his time with the company, he’s served our customers as a bagger, cashier, and grocery associate (stocking produce, dairy, to-bacco, candy and frozen foods) but his favorite position, is being a cashier.

“I love checking out customers and visiting

with everyone,” Max said. “But I don’t care what I’m doing, I love working and I love the people. Doesn’t matter if I’m bagging or greet-ing people, I’m glad to be here!”

Max has had a big influence on his store and the customers he serves, too.

All of his fellow employees and his manage-ment team are glad to see him and appreciate the strong example of customer service with a friendly smile.

Mark Tuffin, Smith’s president, congratulated Max on this incredible achievement and thanked him for his dedicated service.

“We’re glad to have Max working at Smith’s,” Tuffin said. “He’s a wonderful example of hard work and commitment. We are grateful for the service he provides our customers and recognize his lifetime of contribution to our business.”

SIXTY YEARS OF SERVICE

Max Moore, Store #133, SLC, UT

For many, 60 years is a lifetime. For Max Moore, however, it’s just how long he’s been with the company – and he’s not quitting any time soon!

Here’s to you, Max! Thank you for your lifetime of hard work and dedication. And, when you do decide to retire, we wish you, and your wife and kids, all the best. It’ll be sad when you leave but when you do, catch a fish or two for the rest of us!

Dee Smith, Founder, presents an award to Max Moore.

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When it comes to creativity and safety, Linda Lowther-Waters, Smith’s division safety manager, has it covered with the help of her trusted superhero sidekick, ZAP – Zero-Accident-Power!

In fact, Linda has been so successful in her safety efforts at Smith’s, she was recognized as the 2011 Kroger Leadership Award recipient.

Linda, along with ZAP, is empowering employees across Smith’s by providing them with the tools they need to remain safe and accident free at work.

Most recently, Linda has helped associates in the meat and bakery departments by addressing the ever-present concerns of cuts and lac-erations. She’s doing all she can to ensure our associates always have the appropriate personal protective equipment.

Linda has also been bringing ZAP to our fuel centers by adding safety vests for all associates and a lighted cone for the station to keep our asso-ciates safe during darker business hours. The safety of our great people is truly our number one concern and Linda is leaving no stone unturned!

Stores throughout the company also held P-10 Safety Awareness Events over Seven Days of Safety to help raise awareness and empower our associates with the necessary information to be safe at work.

During the events, each district of Smith’s stores created games to play to highlight best safety practices and ensured that all associates participated on some level.

These activities were successful across the board and showed that as-sociates can truly have fun while working safely. Congratulations to Linda and all of our associates for making Smith’s a great, SAFE place to work!

Division Safety Manager ReceivesKroger Leadership Excellence Award

(Left to right): Brent Butterfield, Retail Operations Manager; Linda Lowther-Waters, Division Safety Manager; Harry Hollifield, Kroger Regional Safety Manager and Zane Day, VP Operations

Check out these results through year end, compared to last year: • 15.1% reduction in OSHA injuries (99 less injuries) • 58% reduction in OSHA injuries in focus stores • 98% of stores meeting observation goals • 50% of Stores are STAR Team Certified

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Each year Kroger recognizes an outstanding associate for his or her contributions to their local community.Congratulations to this year’s service award recipient, Pamela Harris. Thank you for your dedicated service to Casting for Recovery and your local community!

Casting for Recovery was founded in 1996 in Manchester, Vermont. It be-gan as a local grassroots group with a big heart and an original national vision and quickly received endorsements from medical and psycho-social experts for its innovative healing program model.

Because of the program’s unique approach, it has gained significant inter-est from the media and has grown to include programs across the United States, Canada and parts of Australia and the Pacific.

The retreats incorporate counseling, educational services, and trained facilitators that staff each event, including a psycho-social therapist, a health care professional (e.g. physical therapist, nurse), as well as fly-fishing instructors and river helpers.

The event also requires the love and involvement of many volunteers throughout the weekend which is where Pamela Harris, a 27-year long Smith’s associate from store #413 in Rio Rancho, New Mexico, joins the picture.

Harris is one of those loving and dedicated volunteers who is committed to the ongoing success of this program in her community. In 2011 Pam helped to raise enough money for 14 breast cancer survivors to attend the unique event at Philmont Scout Ranch in Cimarron where she spent the entire weekend teaching other women how to fly fish and served as their river guide.

Pamela believes in this opportunity so much that she canvasses medical offices in the community to place information about Casting for Recovery in their waiting areas so that more women will learn of this fun and excit-ing resource.

In addition to her award of recognition, Smith’s is also donating an additional $500 to Casting for Recover in her honor. “This is wonderful,” Harris said. “This donation will help another woman attend the retreat in 2012!”

Pamela Harris named2011 Smith’s Community

Service Award Winner

Pam Harris, Store #413, Rio Rancho, NM

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Did you know that Smith’s stores donate enough food to make more than two million

meals every year?On top of that, we find as many opportunities as we can to contribute to the communities we serve through monetary and in-kind donations.

Giving back to our communities is an integral part of Smith’s and Kroger’s commitment to corporate responsibility and, in October 2010, under the suggestion of the Smith’s Cultural Council, we pledged our support to local family shelters through the company’s Neighbor to Neighbor donation fund.

The Neighbor to Neighbor program allows associates to voluntarily donate through weekly payroll deductions and, throughout 2011 alone, Smith’s employees raised more than $38,000 for local charities.

In March 2012, associates from across the company met with shelter leaders and toured local facilities. While touring the facilities, associ-ates gained a greater appreciation of the impact that our contributions make and they were able to see what other opportunities are available.

“Jan and I were very humbled after presenting the check to the Barrett House,” said Michelle Gonzales, District 6 administrative assistant. “It’s amazing to see what the Barrett House does for local women and children. After touring the place we know we can do so much more for them!”

The Neighbor to Neighbor program is a great opportunity for associ-ates to engage in our communities and more fully understand the impact Smith’s has in the towns and cities we serve. Together we make a difference!

Jan Wittington, district manager, and Michelle Gonzales, administrative assistant, from District 6 in Albuquerque deliver donated funds to the Barrett House for Women and Children.

Associates from Store #183 delivering a check to the Good Samaritan Center.

Cultural Council members from stores 94, 44 and 85 delivering the total contributions from the Salt Lake area to the Road Home Shelter.

SUPPORTING THE HOMELESSASSOCIATE GIVING:

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Twenty years ago, Smith’s stores across Utah launched the first-annual Primary Children’s Medical Center fundraiser. That first year, associates and customers donated $27,000 to the hospi-tal’s charity care foundation for families needing help.

Two decades later, in the spring of 2011, Smith’s associates raised an all-time high of $649,000 during the company’s annual campaign through employee-run events and check stand solicitations.

This month, store associates in southern Nevada, northern Arizona and New Mexico will be joining the fun by raising money for their communi-ties’ local children’s hospitals.

The four-week promotional period will benefit the University of New

Mexico Children’s Hospital in Albuquerque as well as the St. Rose Do-minican Hospital’s Pediatric Unit in Las Vegas.

These two hospitals already received gifts of $130,000 each from Smith’s annual Primary Focus Golf Tournament held in 2011 to demonstrate our commitment to their organizations.

In addition to the income generated from the store launch this month, a portion of the proceeds from the 2012 tournament will also go these hospitals.

“It was time to include our New Mexico and southern Nevada store as-sociates in this great activity,” said Mark Tuffin, Smith’s president. “We have many customers who will be touched through our support of these two additional children’s hospitals.”

Expanding Our Support of Children’s Hospitals(Left to right): Assemblyman Mark Sherwood; Rod A. Davis, president of St Rose Dominican Hospitals; Mark Tuffin, Smith’s president; Senator Joe Hardy, M.D.; and Charlie Guida, hospital foundation president

Community Service Spotlight

St. Rose Dominican Hospital’s Pediatric Unit - Las VegasPrimary Children’s Medical Center - Salt Lake City University of New Mexico Children’s Hospital - Albuquerque

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We are excited to announce that “Las Vegas Review-Journal” has awarded Smith’s Food & Drug the 2012 Readers’ Pick Award for Best Grocery Store Chain – AGAIN!Looks like what ‘happens in Vegas doesn’t always stay in Vegas!’ When we found out our southern Nevada stores had won this award for

the seventh year running, we knew we needed to celebrate their success and share this exciting news with all of our associates!

As this award is given by the Review-Journal’s readers, it is clear that our Customer 1st strategy is working; and it’s only going to get better.

“As far as neighborhood grocery stores go, the large, wide aisles at Smith’s don’t have shoppers bumping grocery carts constantly,” the journal stated. “And, these stores stay very well-staffed, which means you can’t get through an entire magazine while waiting to

reach the front of the line. In fact, they often have helpers expediting the lines.”

As we begin promoting QueVision and continue to rollout our aggressive meat and produce pro-grams, we know that our customers are going to be even more satisfied!

“It’s exciting to see our associates and stores nominated for awards like this,” said Mark Tuffin, Smith’s president. “But when we win year after year, it shows how committed our employees are to making Smith’s the best place to shop in all of our markets. Thank you for all that you do!”

Vegas smith’s are Customer Favorites

Years Running7

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As a company, we are committed to being “Market Fresh and Money Smart” and, as a result, we make every effort to provide our customers with the freshest meat and produce available at competitive prices. In fact, we are so confident in our products, we are giving our customers a 100 percent guarantee.

If our customers aren’t completely satisfied with the freshness of the items in our stores, we will provide them an exchange or refund – no questions asked.

Over the next year you will see significant changes across all of our stores as we strive to improve our customers’ shopping experience in our meat, seafood and produce depart-ments. These changes will include new signs, tags, lights, bins and products.

In addition to these changes, we will work closely with employees and department man-agers across the company to minimize shrink and increase customer satisfaction scores.

We will do this by ensuring our stores do not order more product inventory than their sales volumes dictate and by keeping product out of our back rooms.

Remember, every day a product sits in the back of our stores is a day less of shelf life for our customers. If it’s not fresh, it’s out of our stores!

We will continue to set the gold standard of quality and service for our customers across all markets. Thank you for your hard work and your support as we move these changes forward!

Our Market Fresh GuaranteeAn Update on the 2012 Meat and Produce Initiative

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great people If you have an event or story idea for a future issue, email us at: employeenews@sfdc.comSmith’s Communications: Todd Kammeyer, Michael Wilson and Brandi Schaffran-Webb

Check with your manager or Human Resources to find locations near you!

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We are very pleased to tell you about an exciting new educational program called the Retail Management Certificate Program. This 10-course community college certificate is endorsed by Smith’s and the Western Association of Food Chains (WAFC), and it is now offered at over 150 Community Colleges throughout the Western United States.The WAFC-endorsed Retail Management Certificate is a college program designed to prepare current and future food in-dustry members for the management challenges of the future—in any retail field. The curriculum includes several business essentials and management and communication skills required for career success.

Our industry is in a period of massive change. Today’s fast-paced retail environment increasingly requires education, in addition to hard work and dedication. That’s why Smith’s and the WAFC are eager to help our associates take advantage of educational opportunities. We’ll also do our best to work with your class scheduling needs.

Smith’s also offers a competitive tuition reimbursement program for our associates, making obtaining this certificate finan-cially affordable. For more information on Smith’s tuition reimbursement program check out greatpeople.me !

Great Opportunitiesfor Great People

Retail Management Certificate Program