Food Lion 2005 Annual Report Download - page 22

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DELHAIZE GROUP / ANNUAL REPORT 2005
20
HANNAFORD
Stores and Com m ercial Initiatives
During 200 5, Hannaford continued to show good sales
trends, supported by creative innovations in areas such
as private label, supply chain and new concept develop-
m ent.
At the end of 20 0 5, Hannaford operated 145 superm ar-
kets including 19 stores acquired as Victory Super Markets
in Novem ber 200 4 . By the end of Septem ber 2005 , all
Victory stores had been converted into the Hannaford
banner. In the last quarter, Hannaford launched an exten-
sive marketing campaign to support its brand in Central
Massachusetts, where the former Victory stores are prim ar-
ily located.
Hannaford opened a new fl agship store, representing all
the newest com ponents of the evolving Festival strategy.
Originally launched in the Fall of 2002, the Festival
strategy focuses on providing customers with the qual-
ity and variety of products that are im portant to them.
By placing more emphasis in the new fl agship store on
areas of convenience including hom e m eal replacem ent
solutions like sandwiches, prepared salads, salad bar and
sushi, Hannaford has seen a 10% growth in this category
over the prior year. Consum er feedback showed signifi cant
continued growth in positive ratings of quality, variety and
shopping experience over 20 04.
In order to reinforce its differentiation from competition,
Hannaford introduced a new prem ium -quality private
label, called Hannaford Inspirations. At year-end, this exclu-
sive line of private label products included 400 prem ium
item s in the deli, produce, meat, seafood and grocery
departm ents.
The Com pany continued its focus on natural and healthy
food. Hannaford’s Nature’s Place store-within-a-store con-
cept was further deployed, with a presence in m ore than
half of the Hannaford stores at year-end. Sixty new prod-
ucts were added as a result of feedback from custom ers
with dietary needs.
Effi ciency
In 20 05 , Hannaford opened a new 37,00 0 square foot
dairy warehouse in South Portland, Maine, to enhance
overall productivity and to support sales and variety
growth. The Hannaford Trucking Com pany installed on-
board com puters in tractor-trailers to help m onitor engine
and driver perform ance to improve overall cost manage-
m ent, especially fuel usage. The Com pany also piloted a
Computer Assisted Ordering consum er-driven replenish-
m ent software.
In-store effi ciency rem ained a key focus as well. In order to
im prove service at its deli counters, Hannaford piloted an
automated scheduling tool, allowing customer service to
better schedule associates’ presence.
Hannaford com pleted the three-year rollout of its new
point of sale system , with the world’s fi rst application of
a Linux operating system in a superm arket. The new sys-
tem requires fewer training hours and improves scanning
rates.
In recognition for its excellence in food retailing and
its comm itment to the developm ent of its associates,
Hannaford was awarded the 2005 Retail Excellence
Award from Supermarket News, an important retail maga-
zine in the U.S.
KASH N’ KARRY/ SWEETBAY
In 20 05 , Kash n’ Karry continued its conversion into a
new concept and brand, Sweetbay Superm arkets, with 19
Sweetbay stores added through rem odels and store open-
ings. At the end of 200 5 , Kash n’ Karry/ Sweetbay operated
83 Kash n’ Karry stores and 25 Sweetbay Supermarkets. In
200 6 , the Company plans the conversion of its complete
Tam pa/ St. Petersburg m arket, with 48 Sweetbay stores to
be added. All rem aining Kash n’ Karry stores will be con-
verted to Sweetbay Superm arkets by the end of 2007.
The atm osphere upon entering a Sweetbay Superm arket
is not traditional by any m eans. Customers are not met by
front-end checkout registers but by oversized fresh areas
that are designed with an open m arket feel. Sweetbay
carries approxim ately 8,000 m ore products than a typical
Kash n’ Karry store, including a vastly expanded offering
in produce, m eat, seafood, deli, wine, international and
frozen foods.
Sweetbay successfully introduced a num ber of new ele-
m ents during 20 05 . It developed m ultiple departm ents
such as full-service butcher shops and seafood cases
along with a full Nature’s Place departm ent. Borrowed
from its sister banner Hannaford, Nature’s Place offers
customers who are dedicated natural food shoppers, as
well as those custom ers who are just beginning to choose
whole, natural and organic foods as part of their lifestyle,
an abundant selection. Other new categories and product
lines include the On-the-Go Bistro frozen prepared meals
and an expanded wine department.