Food Lion 2006 Annual Report Download - page 38

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DELHAIZE GROUP / ANNUAL REPORT 2006
36
2006
HIGHLIGHTS
ADDED TWO STORES IN
ROMANIA AND FIVE IN
INDONESIA
REFINED MEGA IMAGE
STORE CONCEPT
LAUNCHED PRIVATE LABEL
LINE IN INDONESIA
REACHED AGREEMENT TO
SELL CZECH OPERATIONS
EMERGING MARKETS
Stores 18 50
Area Bucharest, Constanta
(Romania) Java, Sumatra
(Indonesia)
Format Supermarket Supermarket
Average Surface (sq.m.) 800 820
Number of Products 7,900 7,000
ROMANIA
BUCHAREST
CONSTANTA
INDONESIA
JAKARTA
SUMATRA
JAVA
MARKET
Romania
In 2006, real gross domestic product in Romania increased
by 8.0%. General infl ation was 7.2%, while food infl ation
amounted to 4.5%(1).
Indonesia
General infl ation in Indonesia amounted to 6.6% in 2006(2). The
30% rise in fuel prices following a government decision at the
end of 2005 impacted consumer spending power signifi cantly.
Modern retail is developing rapidly in Indonesia with a high
number of competitive openings.
STRATEGY
Mega Image and Lion Super Indo (51% owned by Delhaize
Group) focus on urban areas through a supermarket concept
comprising fresh products, variety, proximity and low prices.
In these markets, Delhaize Group intends to be successful
through a combination of local management strength and
Group expertise.
OPERATIONS
Delhaize Group’s activities in Romania and Indonesia
continued to reinforce their commercial concepts. Destination
categories, such as fruit, vegetables, meat, seafood and
bakery were expanded. In 2006, Super Indo launched a variety
of Chinese food products in the stores located in large Chinese
communities. Mega Image started a 5-a-day health concept
in the produce department and expanded its offer of ready
meals and prepared salads.
1 Source: Romanian National Institute of Statistics
2 Source: Bank of Indonesia