Food Lion 2002 Annual Report Download - page 11

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|9
Locally Adapted Assortments
Delhaize Group’s banners offer locally tailored assortments.
Despite this approach, the assortments share the following
common characteristics throughout the different banners:
focus on perishable departments: fruit and vegetables, meat,
delicatessen and bakery
innovative meal solution offerings
quality private label products
a growing offering of natural, organic and ethnic products
Value for Money Spent
In 2002, Food Lion continued to reinforce its price leadership
among its supermarket competitors. Delhaize Belgium
abandoned all weekly price promotions in order to offer
its customers consistent daily low prices. The same policy
was already in use at Hannaford.
Through private label products, each banner provides its
customers with quality products at competitive prices.
In Belgium, private label products, offering the same quality
as national brands at a 10% to 15% lower price, accounted for
31% of total sales. All banners in the U.S. and Europe
reinforced their private label offering with the introduction of
additional items. In Asia, Shop N Save introduced private label
products in 2002.
Loyal customers receive additional value through the loyalty
card programs at some banners. At the end of 2002,
Delhaize Group’s banners had more than 13.8 million active
loyalty cardholders, including 8.7 million at Food Lion and
2.8 million in Belgium.
Pleasant Shopping Experience
Shopping should be fun and easy. Customers demand easy store
layout and fast shopping experience. In 2002, Food Lion
accelerated the rollout of its self-scanning system and had it
implemented in 50 stores by the end of the year. Customers
reacted enthusiastically to Food Lion’s new, more convenient
supermarket formats of 28,000 and 38,000 square feet, which
allow faster shopping in a more pleasant environment. Delhaize
Belgium continued the rollout of its successful convenience
formats: Delhaize City, Delhaize Proxy and Shop ’n Go. It also
invested further in self-scanning. Alfa-Beta and Delvita also
launched new convenience store formats.
In 2002, the Football World Cup
was organized in Japan and South
Korea. Additional merchandising
tie-in efforts were made at
Delhaize Belgium, at Alfa-Beta and
in Asia. Delhaize Belgium added
more Japanese products and dishes
to its assortment. In Asia,
customers were offered soccer
balls, towels, T-shirts and caps
during the Football Fair.
The Hispanic and Latino population
is the fastest growing demographic
group in the U.S. In order to better
serve its Hispanic and Latino
customers, Food Lion carries a
large assortment of ethnic food
items. In 2002, the company
launched Spanish language flyers
and bilingual in-store signage.
In 2002, ready-to-eat and
ready-to-cook meals were
afast-growing category at all
Delhaize Group banners.
In 2002, Delhaize Belgium
sold 16 million, or 50,000 a day,
of them.