Our Heritage...

Jack Croco learned from one of the best. Orphaned at 13, he entered the grocery business under the wing of Boise, Idaho, neighbor Joe Albertson. He mastered the trade, studied at Yale, fought in World War II under General Patton, and opened Albertson's Seattle division before striking out on his own in 1956.

Croco's first Quality Food Center, in Bellevue, Washington, boasted gleaming floors, a convenient layout, perfect produce, and exceptionally courteous employees. "Take great care of each customer," Croco told his QFC troops. And after more than 40 years of company expansion, they still do, continuing the QFC tradition of giving customers premier products and service.

Strategic expansion and a renowned dedication to quality have made QFC the second largest supermarket chain in Washington's Seattle/Puget Sound region -a strong and growing market.

Quality Food Centers: the name says it all. Around the Pacific Northwest, loyal customers make QFC's 89 stores their destination for the highest quality perishables-especially produce and service second to none.

With this hard-to-beat combination, QFC targets a niche that can be defined as "premium mainstream." Stores serve urban, suburban, and outlying neighborhoods, and are particularly popular among upscale consumers with little time to shop and prepare food, but no desire to sacrifice quality.

Strong Store Identity

One of QFC's major assets is its distinctive identity, reflected in product selection and store design. Stores are sited and stocked with the convenience of neighborhood consumers in mind. Decor is simple and clean, encouraging shoppers to focus on products.A tasteful and appealing presentation of produce, meats, deli foods, and baked goods-with the spotlight on freshness-differentiates QFC from its competitors.

"We believe that a store's decor and the attitude of the people who work there have a profound impact on the customers' shopping experience," says President and CEO Dan Kourkoumelis "The cans on the shelf are mainly the same from store to store. It's employees and environment that make the difference."

More Than a Supermarket

A pioneer in the field of home meal replacement, QFC has made a name for itself by offering customers "Good Food-Fast" in a variety of forms, from ready-to-eat dinners to cold-case pasta dishes and salads. An extremely popular program called Chef's Express lets customers select from a delicious array of gourmet foods that can be easily cooked, broiled, barbecued, or baked at home. Selections include stuffed porkchops, parmesan-covered sole, herbed lamb, and seasoned and stuffed turkey.

Selected QFC stores also contain the company's popular Northwest Sandwich Bars, providing grilled panini sandwiches, pasta, soups, and salads. Combined with the in-store offerings of retail partners like Starbucks, Cinnabon, and Noah's Bagels, the sandwich bars provide a high-quality alternative to regular fast-food franchises and make QFC more than a supermarket.

A History of Growth

Before joining Fred Meyer, QFC was a strong industry player with a track record of successful acquisitions. Early in 1997, the company acquired KUI, which operated in Washington's South Puget Sound area.

Also in 1997, QFC acquired 56 Hughes Family Markets in Southern California. Almost immediately QFC began to revamp Hughes' market approach, instituting expense controls and streamlining programs. By year-end QFC had aligned the chain, which will now be operated by Ralphs, with values and quality standards shared by all Fred Meyer companies.

A Larger Northwest Presence

As part of the Fred Meyer family, QFC will con-tinue to expand its Pacific Northwest presence, entering new markets where the company's excep-tional combination of quality and convenience is in demand. In early 1998 QFC began its expansion into Portland, Oregon, with two new stores. By the end of 1998, the company plans to open the doors on one additional store in Portland, plus its first new stores in Olympia, Washington. Ten existing stores are scheduled for remodeling in 1998.

"QFC has a lot to gain from our association with Fred Meyer: major manufacturing and distribution clout, broad experience with nonfood categories and private labels, plus strategic knowledge of the Portland market," says Kourkoumelis."However, we want customers, employees, and shareholders to know that the things that have made QFC a success- our culture and our commitment to quality-will remain firmly in place."

Dan Kourkoumelis, president and CEO of Quality Food Centers,
started out in 1967 as a courtesy clerk, bagging groceries. There on the front lines of the business, he learned the power of courteous customer service. Rising from store management to executive positions, Kourkoumelis has instilled a commitment to quality and service in his team. "One of my current goals is to keep morale high and to encourage talented people to stay with the great new company we've created," he says. "The first step in taking good care of customers is taking good care of each other."