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DELHAIZE GROUP  ANNUAL REPORT 2004
18
In 2004, Delhaize Group’s U.S. store network
increased by eight stores to a total of 1,523
supermarkets. In the fi rst quarter of 2004, Kash
n’ Karry closed 34 stores. Hannaford acquired
19 Victory Super M arkets in M assachusetts and
New Hampshire in the fourth quarter. Food Lion
also continued its grow th through the acquisi-
tion of ten W inn-Dixie stores in North Carolina
and Virginia.
Delhaize Group’s U.S. operations posted sales of
USD 15.8 billion (EUR 12.7 billion), an increase of
1.9% over 2003. Comparable store sales grew
by 1.5% compared to 0.6% in 2003. The sales
momentum of Food Lion and Kash n’ Karry/
Sweetbay improved while Hannaford continued
to perform strongly. Net earnings in the United
States totaled USD 139.1 million (EUR 111.9 mil-
lion), a 49.4% increase over 2003.
FOOD LION
“ Renewal“
Food Lion continued to reinforce its differenti-
ated market position by further developing
its store concepts and customer offerings.
Following the fi rst complete market renewal in
Raleigh, North Carolina, in 2003, the company
renewed a second full market in Charlotte,
North Carolina. In 65 stores in this market, fresh
departments were expanded, new equipment
and fi xtures w ere added, product selection w as
increased and associates received a new sales
training course.
The experience in the Raleigh market renew al
allow ed Food Lion to fi ne-tune the sales ini-
tiatives and renew the Charlotte market w ith
approximately 20% less in capital expenditures
per store on average. Based on the success of its
fi rst two market renewals, Food Lion will launch
a third and fourth market renew al program in
UNITED STATES
2004
HIGHLIGHTS
Completed second market
renewal and launched Bloom
at Food Lion
Acquired Victory Super M arkets
in the Northeast
Launched Sweetbay
Supermarket in Florida
C
h
ange
2004
2003
N
umber of stores*
+
8 1
,
523
1
,
515
S
ales
* *
+
1.9%
1
5,
8
4
6
.1 15,545.
9
Operating margin
+32 bps
p
5
.0
%
4
.7
%
Operatin
g
profit* *
+
8.8
%
7
99
.
0
7
3
4.
3
N
et earnin
g
s
* *
+
49.4% 1
39
.1
93
.1
*
in
c
l
udes
t
h
e
closing o
f
34 Kash n’ Karry store
s
*
* in millions of
USD