Food Lion 2001 Annual Report Download - page 42

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Sales of the Asian operations of
Delhaize Group grew in 2001 by
20.4% to EUR 187.0 million. This is
when 49% of Shop N Save sales were
included. With 100% of Shop N Save sales
included, total Asian sales would have been
EUR 264.1 million. Eighteen supermarkets
were added to the sales network for a total
of 86 supermarkets, including 26 in
Thailand, 29 in Indonesia and 31 in
Singapore.
The driving force behind this success is the
Group’s organic growth in this area. In Asia,
Delhaize Group operates medium-sized
stores of approximately 1,000 square meters,
located in the center of residential areas and
focusing on fresh products. With this
assortment approach and its low break-even
point, the Delhaize Group supermarkets in
Asia are able to compete against the popular
traditional open-air, wet markets.
In 2001, each Asian banner contributed to the
growth. Food Lion Thailand opened eight new
stores, Super Indo in Indonesia nine stores,
and Shop N Save in Singapore one store.
Local Strategies | The concepts
of the three Asian banners of Delhaize
Group are based on the same principles:
focus on food, freshness, competitive prices
and convenience. In order to enhance
customer service and meet local customer
needs, the implementation of these
principles differs from country to country.
Thailand
With its concept “Talaad sod klai baan
khun,” meaning “The fresh market near your
home,” Food Lion Thailand focuses on
freshness, convenience and price. Food Lion
Thailand is continually innovating to
increase customer service and satisfaction. It
extended the product assortment with ready-
to-eat meals, prepared in view of the
customer, emphasized dry ingredients in bulk
and allocated more space for fresh products.
The recently added stores have incorporated
many features of this reinforced concept.
Others will be refitted in the course of 2002.
Indonesia
Super Indo in Indonesia drove its 2001 sales
significantly higher through rigorous
product assortment management, better
space management and improved
collaboration with suppliers. The offer of
meal solutions under the slogan “Easy done,
Easy cooked” was further extended. Super
Indo maintained its low price leadership
position by benchmarking its prices against
competition.
Singapore
In Singapore, Shop N Save enhanced
customer service in its fresh departments
and introduced more grocery products in its
improved store layout. In most of the stores,
a fish cleaning service has been introduced.
In August 2001, Shop N Save joined the
More Rewards program, Singapore’s largest
loyalty program, which counts more than
350,000 members. This program enables
Shop N Save to reward its current
customers and attract other More Rewards
card owners to its stores.
Regional Cooperation | The
different local approaches are supported by
regional synergies between the three Asian
companies of Delhaize Group. This is
Asian Synergies
In 2001, Delhaize Group’s Asian
operations set up four Asian Synergy
Groups. Each of these Groups brings
together specialists from the three Asian
operations to look for synergies and best
practices in their area of interest. Up to
now, Synergy Groups have been
established for systems and methods,
buying, operations and human resources.
Adap
40 |Delhaize Group |Annual Report 2001
Asia
Delhaize Group’s Asian operations continued in 2001 their strong
which focus on fresh products at very competitive prices enjoyed a growing
five million visits per month.