As it commemorates its 125th anniversary in 2008, The Kroger Co. still is carving a trail of expansive growth and innovation.

From its humble beginnings as a one-store operation in Cincinnati, the company has become perhaps the most prominent U.S. supermarket retailer with more than 2,500 locations and two-dozen banners in 31 states and annual revenues of more than $66 billion.

While an element of Kroger’s strategy is growth by acquisition, as illustrated by the company’s purchase of such chains as Dillons and Fred Meyer, the retailer also could eventually launch additional banners.

Gene Hoffman, former president of The Kroger Co., for instance, says that he “envisions” Kroger one day opening deli and meat stores as supermarkets become more personalized.

“Kroger could pioneer the process,” he states. “We have seen new smaller formats, such as Whole Foods and Trader Joe’s, appeal to a sustainable new segment of today’s demographics. There might well be a future opportunity for a farsighted, innovative food merchant such as Kroger.”

The retailer also is likely to continue its pattern of creative in-store marketing. Hoffman states that decades ago the company’s St. Louis Division developed the “Henry the Steer” character for it meat departments.

Henry, who was accompanied by the tagline, “He’s okay for Tenderay,” (Kroger’s branded beef), was perched on a high wire and pointed out the beef specials of the day. An animated pig and chicken did likewise for pork and poultry with jingles accompanying the merchandising.

Produce departments, meanwhile, contained a “Fresh Lettuce Patch” with an animated and vocal “Dewy the Rabbit” as the produce clerk. Dewy moved about the racks sampling products for freshness and taste.

In addition, dairy areas featured an animated and active “Henrietta the Hen,” who described how and why Kroger eggs were “cackling fresh.”

“I well remember when Kroger held its seventy-fifth anniversary and we did some very creative things for that era, including running full-page four-colored ads featuring a single fresh product,” Hoffman states. “It was fun. And that’s what I would suggest for meat and deli operators today: make your departments more fun.”