Last updated on December 13th, 2012 at 10:45 am
Brussels, Belgium-based Delhaize Group, an international food retailer, plans to further accelerate store openings in its newer operations and achieve annual revenue growth of 5 to 7 percent within three years. Additional cost savings will be generated and used to invest in the sales building initiatives that will support accelerating growth, according to the company.
The group expects to open approximately 450 stores in its high-growth newer operations between 2012-2014, representing a significant step up from the past years.
Pierre-Olivier Beckers, president and CEO of Delhaize Group, said, “Two years into the execution of the new game plan, aimed at accelerating revenue and operating profit growth, we are making a lot of progress in a difficult environment. We are strengthening our brands, stepping up price investments at all our operating companies, further developing our formats and generating the means to fund these initiatives through structural changes in the way we operate.”
Delhaize Group’s newer operations, the combination of its new markets (Southeastern Europe and Asia) and new formats (Bottom Dollar Food in the U.S. and Red Market in Europe), have contributed to the group’s revenue and operating profit growth during the first two years of the new game plan. Additionally, the company notes that the encouraging results of Bottom Dollar Food in the Philadelphia market support plans for expansion in additional markets that present the same growth profile. This will include hundreds of new Bottom Dollar Food stores over the next five years, according to the company.