Food Lion 2001 Annual Report Download - page 36

34 |Delhaize Group |Annual Report 2001
potatoes, hot drinks, ready-made food,
wine, champagne culinary aids, organic
products and vegetarian products.
In 2001, Delhaize Belgium sold, on
average, more than 43,000 prepared meals
daily. Delhaize Belgium offered 116
different recipes, many of which are exotic
and others are prepared in collaboration
with five famous chefs. Thanks to their
20% growth in 2001, the meal solutions
based on non-Belgian recipes accounted
for more than half of total prepared meals
sales. Delhaize Belgium explores new
trends in cuisine and increasingly offers its
customers the opportunity to travel the
world of flavors, such as Chinese prepared
meals, “Wines of the World” or sushi,
without leaving home.
In the same vein, Delhaize Belgium
continuously expands its organic food
offerings. Their sales increased by 35% in
2001, representing more than 2% of total
sales in 2001. Delhaize Belgium also
emphasizes health and fitness by
developing a range of hypoallergenic
products, products suitable for diabetics,
low cholesterol products and nutritional
and vitamin supplements. 2001 brought the
development of “Beauty Plus” in some
supermarkets, large areas dedicated to
health and beauty products.
The loyalty card, which celebrated its 10th
anniversary in 2001, is one of the key
drivers in the relationship between
Delhaize Belgium and its customer base.
More than 2.6 million cards are active in
Belgium, and 90% of the sales are realized
through the use of the card. In 2001, new
partnerships have been set up for Plus
Card owners, notably with the bank-
insurance company BBL and the toy shop
Christiaensen.
Delhaize Belgium is the only Belgian food
retailer offering its clients self-scanning,
allowing customers to save time at the
checkouts. At the end of 2001, more than
40 supermarkets were equipped with this
system. By the end of 2002, more than half
of the Belgium Delhaize “Le Lion”
supermarkets will offer self-scanning.
To guarantee the quality of its services, the
Customer Charter of Delhaize Belgium
has, since 2000, awarded extra Plus Points
on customers’loyalty cards to cover
specific shopping inconveniences such as
pricing errors on the sales receipt, out-of-
date merchandise, defective product
quality or problems with the shopping cart.
The initiative led to significant
improvements in customers service and
increased of customer loyalty.
The Euro | The introduction of the
Euro has received significant attention in
2001 and early 2002. Delhaize Belgium had
been preparing for this event for several
years. The entire sales staff, more than
14,000 people, were trained to deal with the
transition to the Euro. Communication with
customers about the Euro began in the
summer of 2001. In November 2001, the
Plus Card was converted to the Euro. All
other processes impacted by the Euro
introduction followed: from collecting the
cart in the parking lot to payment at check-
out, at the change machine, when returning
empty bottles, self-scanning, and pricing
fruit and vegetables at the scales, among
other things. The total amount of costs spent
for the Euro transition at Delhaize Belgium
since 1999 was EUR 3.5 million.
Outlook | In 2002, Delhaize Belgium
expects to add 61 stores to its sales network,
including three Delhaize “Le Lion”
Supermarkets. Building upon its strong
performance in 2001, Delhaize Belgium
expects to maintain its operating cash flow
margin at least at the same level as in 2001.
An important project in 2002 is the start of
the enlargement of the distribution centers in
Quality and
Traceability
All beef and pork offered by Delhaize
Belgium bear the Meritus or Certus label,
which denotes inspection and approval by
independent organizations. These labels
guarantee consumers that the entire pro-
duction chain is controlled and corre-
sponds to a set of strict requirements. The
labels also enable Delhaize Belgium to
trace back the origin of the meat. Thanks
to the Certus and Meritus labels, cus-
tomers can be assured they are buying
safe, quality meat.
( www.belgianmeat.be )