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DELHAIZE GROUP / ANNUAL REPORT 2006
28
MARKET
In 2006, the United States posted real GDP growth of 3.4%
compared to 3.2% in 2005. Unemployment rates decreased
compared to 2005 both nationally and in Delhaize Group’s
operating areas. U.S. personal consumption expenditures
increased by 3.2% in real terms and by 6.0% in nominal terms.
Overall infl ation was 2.5% and external food infl ation was
slightly lower at 2.2%(1).
The retail industry on the East Coast continued to see channel
blurring in traditional supermarkets, supercenters, drug/
convenience stores, limited assortment and large combination
stores.
STRATEGY
Through its three U.S. operating companies, Delhaize Group
operates food supermarkets in the Southeastern, Mid-Atlantic
and Northeastern regions of the United States. Although
each company goes to market differently and under different
brands, they continue to reinforce their collaboration and
exchange of expertise.
In spite of their different market positioning, Delhaize Group’s
supermarkets share several common strengths: a rich variety
of food products, a convenient store layout, and a competitive
value proposition.
UNITED STATES
®
Stores 1,159* 39 18 68 158 77 30
Area Southeast and
Mid-Atlantic Maryland,
Virginia, North
Carolina, South
Carolina
Maryland,
Virginia, North
Carolina
Georgia and
Northern Florida Northeast Florida Florida
Format Supermarket Supermarket Discount
supermarket Supermarket Supermarket Supermarket Supermarket
Average
surface (sq.ft.) 35,500 38,000 35,400 30,300 48,400 45,400 41,600
Number of
Products 15,000-20,000 24,500-25,000 6,500-8,000 15,000-33,000 32,000-44,000 35,000-40,000 30,000-35,000
2006
HIGHLIGHTS
ADDED 12 STORES FOR
A TOTAL OF 1,549
LAUNCHED WASHINGTON
RENEWAL WITH FIRST
MULTI-BRAND STRATEGY
AT FOOD LION
INTRODUCED GUIDING
STARS, A NUTRITION
NAVIGATION SYSTEM,
AT HANNAFORD
CONVERTED 43 KASH
N’ KARRY STORES TO
SWEETBAY
REINFORCED PRICE
POSITION AT ALL
OPERATING COMPANIES
* Incl. eight Reid’s stores
(1) Source: U.S. Bureau of Economic Analysis; U.S. Bureau of Labor Statistics