Food Lion 2012 Annual Report Download - page 17

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DELHAIZE GROUP ANNUAL REPORT ‘12 // 15
Assortment
Although Delhaize Group oper-
ates as an international food
retailer, the company believes
that the importance of a strong
local identity cannot be overesti-
mated. This belief comes to life
within each operating company
as it tailors its local assortment
as well as price and promotion
strategy to the needs and tastes
of the local customers. The suc-
cess of this local approach of
Delhaize Group can easily be
measured when looking at its
performance in Greece.
Although fully owned by Del-
haize Group, Alfa Beta remains
fi rst and foremost a Greek
retailer. Alfa Beta perfectly
understands what its custom-
ers desire, especially during
diffi cult economic times, like
the ones currently experienced
in Greece, when shoppers are
looking for ways to control their
budgets. In addition to a wide
range of affordable products,
the assortment in our Alfa Beta
stores offers a great number of
local products as well, giving
not only to customers the best of
what they need but also offer-
ing opportunities to local sup-
pliers. In the United States, DG’s
Hannaford banner uses the
same approach with its “
Close
to Home
” campaign. The cam-
paign is well received by cus-
tomers and continues to gain
traction.
In addition to using local man-
agement to understand the
local customer and offer the
right assortment, several oper-
ating companies within the
Group also devote signifi cant
attention to data analysis.
These data come, where avail-
able, from loyalty programs and
give banners the possibility to
identify the shopping behav-
iors of their customers. With
this information DG operating
companies, like both Food Lion
and Delhaize Belgium, can per-
sonalize promotional offerings
and optimize the individual cus-
tomer’s shopping experience.
Private Brand
Within the assort-
ments, one of the strong-
est differentiators are the
Delhaize Group Private Brands.
They give the Group the oppor-
tunity to offer tailor-made solu-
tions to different customer seg-
ments, balancing both quality
and price. In Belgium top chefs
recognize the quality of many
of the private brand items,
including
365
. This feedback
should come as no surprise
since Delhaize Group does not
compromise on product qual-
ity, even in the value range
365
product line. And being able to
offer these quality products at
affordable prices demonstrates
a deep knowledge of the entire
production cycle refl ecting the
expertise within the Delhaize
Group that makes a difference.
In addition to the
365
value line
in Europe and
MyEssentials
in
the U.S., the DG private brand
assortment includes a house
brand at most of our banners,
the Taste of Inspirations gour-
met brand, and some cate-
gory-specifi c brands that tar-
get specifi c assortments, such
as
Care
(health & beauty), Bio
(organic),
Kids
(children), and
Baby
(infants).
Every year DG operating com-
panies develop new products
to better meet the needs and
satisfy the demands of our cus-
tomers. For example, at Del-
haize Belgium, 11 new vegetar-
ian products were launched in
the
Bio
assortment in 2012. In
the U.S., Hannaford became the
fi rst grocery chain in the coun-
try to document that all 2,500
private brand seafood prod-
ucts – no matter where they are
located in the store – have been
sustainably harvested. The
company can trace every sea-
food product back to its source
fi shery and provide that infor-
mation to customers when they
request it.
4-WALL DIFFERENTIATION