• Cincinnati Enquirer, Thursday, October 8, 2009 10:47 AM

Kroger CEO David Dillon yesterday told a crowd attending the Cincinnati USA Regional Chamber's annual luncheon that the supermarket chain realized nearly a decade ago that to survive it had to put the customer first, and "permanently," Laura Baverman reports. And its evolution came from two lessons learned through its 126-year history: the importance of honesty and accepting feedback.

"You can't grow, change, improve if you don't recognize the need for that," Dillon says. "We were not as good as we thought we were."

So the chain started to build larger stores with more products at cheaper prices with cleaner aisles and shorter lines. It also began to offer $4 generic prescriptions, organic food selections, Murray's Cheese counters and a 3-cent reward for using a reusable shopping bag. It also donates food to local food pantries, runs breast cancer awareness campaigns using local women, and gives away its Deluxe ice cream to loyal Twitter followers.

Asked about the top three things he'd improve about his stores now, Dillon cited lower prices on some products, improved service at the front of the store and having in stock the right products when customers want to buy them.

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