Believing in our people
We are convinced that a team of energized associates who shares a positive attitude will help us achieve our vision to become the best food and drug retailer in the world. During the year, we re-engineered our compensation programs to more closely link pay to performance, improved communications to keep associates better informed, streamlined our training and education programs, and revised benefit plans to provide more choices and reduce costs.

Leading by example
We continue to build an energized workforce with a focus on positive leadership and positive attitudes. Our leadership team is expected to set the example by creating an uplifting atmosphere for associates and practicing positive leadership every day. We are continuing to improve recruiting processes to ensure that rigorous hiring standards are consistently met for all positions. Kiosks are being installed in all stores to improve candidate screening and to streamline the hiring process. New associates now begin their careers with a dynamic orientation program that focuses on the Company's Vision, Mission and Core Values, and emphasizes what it takes to be successful.

Diversity and learning
Diversity continues to be a major priority for the company as we implement programs to ensure that our associate population mirrors our customer base at every level of the organization. We are especially proud of the progress we have made in the past year to increase women and minorities in our leadership ranks. We are also focused on establishing a culture of lifelong learning because we believe that well informed and experienced associates make better decisions and develop more innovative solutions. In a major development, a comprehensive on-line and classroom curriculum for leadership and skill development will soon be available to all management associates.

Achieving their dreams
We believe that energized associates are motivated to do their best work everyday...they care about customers, service and sales. Our 200,000 associates make our Company successful, and we will continue to do our part to help them achieve their dreams!!