Delhaize continues to benefit from Easy, Fresh & Affordable initiative
Delhaize continues to benefit from Easy, Fresh & Affordable initiative
Delhaize had a strong 2015, with store operations in the United States benefiting from its Easy, Fresh & Affordable program, a multi-year initiative launched in May 2014 that aims to make shopping easier for Food Lion customers at the company's more than 1,100 stores, while keeping the low prices customers expect. For the full year 2015, Delhaize America generated revenues of $17.8 billion, an increase of 2.2 percent compared to 2014.
“In 2015, in line with our strategy outlined two years ago, we kept our focus on our customers and made good progress on our strategic initiatives," Frans Muller, president and chief executive officer of Delhaize Group, said in a press release. "Specifically at Food Lion, the revenue uplift from Easy, Fresh & Affordable is delivering according to plan and costs are under control.... We recorded revenue increase at all our banners.
“For 2016, our objective is to fine-tune the Easy, Fresh & Affordable initiative at Food Lion and to roll it out to an additional market," Muller said. "We are also confident to maintain our sales trends in all our markets in 2016."
In the fourth quarter, the company's real growth, corrected for inflation, at Delhaize America was 3.3 percent.
In the fourth quarter of 2015, revenues in the United States increased by 2.6 percent to $4.4 billion excluding a 53rd trading week in 2014. Comparable store sales growth was 2.3 percent despite retail deflation of 1 percent, driven by planned price investments in both banners, and mild weather. Both Food Lion and Hannaford continued to report positive real sales growth of over 3 percent.
Delhaize and Ahold agreed to a $29 billion merger in June 2015. "Subject to final approvals, we are looking forward to bringing our operations with good operating momentum and a solid financial structure into a stronger and larger group as we complete the merger with Ahold on schedule by mid-2016,” Muller added.
