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DELHAIZE GROUP / ANNUAL REPORT 2006
12
IN ADDITION TO GROWING THE TOP-LINE THROUGH SALES-BUILDING INITIATIVES IN
EXISTING STORES, DELHAIZE GROUP FOCUSES ON ACCELERATING ITS STORE REMODELING
AND NETWORK EXPANSION PROGRAMS.
NETWORK RENEWAL
AND EXPANSION
Renewals
In 2006, Food Lion continued its
successful market renewal program,
with the fi rst multi-brand renewal in
Washington, DC. Twenty-fi ve Food Lion
stores were relaunched; 14 Food Lion
stores were converted into Bottom
Dollar and 29 into Bloom, with 11
additional Bloom stores opened in
early 2007. The use of three different
brands allows Food Lion to better
match a store to local demographics
and social factors. For 2007, Food Lion
has identifi ed two new markets to be
renewed, Norfolk, Virginia and Myrtle
Beach, South Carolina.
In Florida, Sweetbay continued its
conversions from the Kash n’ Karry
brand, with 43 stores converted in
2006. Customers reacted positively to
the conversions, and converted stores
show major sales uplifts. In 2007, the
31 remaining Kash n’ Karry stores will
be converted to Sweetbay stores. Also
in 2006, Delhaize Belgium converted
the fi rst Cash Fresh stores, acquired in
2005, to Delhaize banners. The majority
of the remaining Cash Fresh stores will
be converted in 2007. Hannaford and
Alfa-Beta plan to remodel nine and
seven stores respectively.
Openings
In 2006, Delhaize Group added 69 stores
to its network. Hannaford opened 14
stores, its largest organic growth ever.
For the fi rst time in 15 years, Food
Lion entered a new market, Greenville-
Spartanburg, South-Carolina, opening
fi ve Bloom and three Food Lion stores.
In Greece, Alfa-Beta accelerated its
network expansion, adding 13 stores.
Delhaize Belgium added 35 stores,
including two company-operated
supermarkets and 18 Tom & Co pet
food stores. Delhaize Belgium also
continued to test the German market,
with the opening of the fi rst Delhaize
City store in Köln.
In its Washington, DC market, Food Lion took
for the fi rst time a multi-brand approach when
renewing a market.
In 2006, Alfa-Beta opened 13 new stores.