Food Lion 2012 Annual Report Download - page 9

DELHAIZE GROUP ANNUAL REPORT ‘12 // 7
+ 224 new stores
PIERRE-OLIVIER BECKERS
CEO DELHAIZE GROUP
Simplifi cation and cost aware-
ness is really becoming everyone’s
focus. Because retail is detail, we
need to turn every penny twice
before we spend it and when we
spend it, it has to benefi t both the
customer and the company.
have adapted and we will continue
to invest in price, in assortment and
in our stores. We are serious about
stepping up our efforts in the U.S. This
is also demonstrated by the appoint-
ment of Roland Smith as the new CEO
for Delhaize America. He took over
from Ron Hodge who retired at the
end of the year after successfully cre-
ating the Delhaize America structure
and initiating the Food Lion reposi-
tioning. Roland came on board with
energy and determination to further
build and accelerate our efforts in
order to solidify and secure the future
of the operations in the U.S.
Looking at the evolution of the
market share in Belgium, it looks
like your historic base could also
use some attention.
POB: When we look at the market
share trend in Belgium, it is obvious
that we can do better and, of course,
have that ambition. There are a num-
ber of elements to explain this evolu-
tion. The current economic crisis and
waning consumer confi dence are in
the advantage of the so-called price
players in the market. On top of that,
some of our competitors found trac-
tion again and new competitors
entered the market. So yes, the bat-
tleground has changed and we lost
some ground. But we know we have
the tools and the people, to regain
what we have lost. Over the last years,
we have invested heavily in the back
offi ce, now we will focus more on our
network and on our product offering.
Delhaize in Belgium has always been
recognized as a food innovator offer-
ing unique products and service. It will
be our goal in the months and years
to come to make these points of dif-
ferentiation stronger than ever before.
While Delhaize Group seems
to have diffi culties in its mature
markets, with the portfolio in
Southeastern Europe it clearly
has a winning hand.
POB: The performance of our newer
operations and formats, like South-
eastern Europe, Indonesia, Red
Market in Belgium and Bottom Dol-
lar Food in the U.S., was without any
doubt one of the bright spots in 2012.
In Romania, we opened at an incred-
ible speed 89 new stores in 2012 and
in Indonesia Super Indo celebrated
the opening of its 100th store. As was
the case last year, our operations in
Greece weathered the tough eco-
nomic conditions in the country well.
Alfa Beta succeeded again in market
share growth thanks to the consistent
implementation of its strategy, based
on low prices and affordable private
brand alternatives. Of course we are
satisfi ed with this performance, but
we nevertheless stay vigilant with
regards to the future of the country
within the Euro zone. Not being pre-
pared would be irresponsible.
Looking forward, what are
the key priorities for 2013?
MJ: I have had signifi cant experience
navigating through rough waters. The
most important lesson I have learned
from those experiences is that an
organization has to be focused on a
limited number of high impact priori-
ties. Speed and impeccable execution
will be required to win the hearts and
the wallets of the customers and to
keep you in the game. And as I said
before, the overall priority is to con-
tinue to deliver on this strategy and
increase the value for both our cus-
tomers and our shareholders.
POB: In 2013, more than ever before,
our focus will be on accelerating
revenue growth and on value crea-
tion. Further price investments, selec-
tive store openings and comparable
store sales growth should result in
an increased top line while a ruthless
discipline in our capital allocation in
combination with a new strategic cost
plan and focus on free cash fl ow gen-
eration should result in value creation.
By delivering on these two key priori-
ties we will not only reach the other
side of the river, will be well positioned
far beyond 2013.
62%
of all Food
Lion stores
repositioned