Food Lion 2006 Annual Report Download - page 36

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DELHAIZE GROUP / ANNUAL REPORT 2006
34
2006
HIGHLIGHTS
EXPANDED PRIVATE LABEL
ASSORTMENTS
CONTINUED
IMPLEMENTATION OF
EFFICIENCY PROJECTS
ADDED 13 STORES FOR
A TOTAL OF 148
GREECE
MARKET
In 2006, the real gross domestic product of Greece increased
by 3.5%, compared to 3.7% growth in 2005. Unemployment
rates declined. Overall infl ation was 3.2%, national food
infl ation amounted to 3.8%(1). Competition added 60 stores
during the year, particularly discount stores.
STRATEGY
Alfa-Beta aims to be the preferred Greek food retailer,
with particular focus on fresh products, local specialties,
outstanding variety, service and convenience. The company
operates a rapidly growing multi-format store network
comprising supermarkets, proximity stores and cash and
carry stores.
OPERATIONS
In 2006, Alfa-Beta continued to refi ne and expand its
assortment, particularly by adding products to its successful
private label lines: AB Choice (premium-quality products),
Alfa Beta Close to Greek Nature (regional products), Care
(general merchandize) and the general AB private label line.
The company also doubled the number of “Self Traiteur”
departments, an in-store preparation department for deli and
meal solutions.
In 2006, Alfa-Beta further reinforced its everyday competitive
price position. Prices of 700 products were reduced. The “365”
assortment was expanded, comprising 260 basic products at
prices in line with the market’s hard discounters at year-end.
In addition, customers continued to save by using the AB Plus
loyalty card. Transactions using the loyalty card represented
more than 70% of total sales.
Stores 97 11 15 15 10
Format Large-assortment
supermarket Company-operated
urban convenience store Affi liated
convenience store Affi liated
convenience store Cash & carry stores
Surface (sq.m.) 700-3,500 380-550 200-350 500-700 1,450-3,550
Number of Products 15,000 4,500 6,000 10,000 8,000
ATHENS
(1) Source: General Secretariat of National Statistical Service of Greece