Food Lion 2014 Annual Report Download - page 11

Delhaize Group Annual Report 2014 • 9
• Increasing consumer demand for trans-
parency about our products; for example,
where they are from and how they are
produced.
• Health trends including the increase of
diet-related diseases (obesity, diabetes,
malnutrition) impacting customer health
needs and expectations.
• Increasing pressure on both agriculture
and oceanic resources impacts price and
availability of our products; for example,
the increasing global demand for food,
decreasing availability of water, diminishing
soil quality, and climate change impacts
such as droughts and storms.
So, to prepare us to stay competitive in this
changing world, we established the Super-
good 2020 strategy. On the path to meeting
our 2020 goals, we are changing how we do
business – from how we design and source
our private brand products, to how we foster
healthy living among our customers and
associates.
Being a Supergood company underpins the
way we operate and is simply good business:
our Supergood ambition is to delight our
customers and energize our associates by
helping them live happier and eat healthier in
thriving local communities.
The following pages show our strategy in
action across our markets as we meet today’s
challenges and prepare for those we will face
tomorrow.
2015 PRIORITIES
Put the customer back
at the center
• Provide a great local shopping
experience in stores and on-line
Engage great people
• Develop a strong performance
culture
• Offer development opportunities
Connect with communities
• Support thriving communities
• Improve our offer of nutritious,
sustainable, and affordable
private brands
• Empower healthy and
sustainable living
Create value in line with our peers
• Support growth opportunities
• Realize operating excellence
and efficiencies
• Maximize our assets’ potential
and return
Align our information technology (IT)
and business priorities
Concretely, in the U.S., we will be
further focusing and careful rolling
out the Food Lion “Easy, Fresh &
Affordable… You Can Count on Food
Lion Every Day!” commercial strategy.
We will also continue to accelerate
growth at Hannaford. In order to
realize operating excellence and
efficiencies, we will implement the
Transformation Plan in Belgium and
maximize the benefits of Coopernic,
our European buying alliance. In
Southeastern Europe and Indonesia,
we remain focused on further store
expansion and comparable store
sales growth.
First, large format stores, particularly
hypermarkets are being challenged. Several
large players are experiencing a slowdown
of comparable store sales (CSS) in their core
large formats. Thus they are developing
smaller formats as well as on-line alternatives
to try to revive growth. Second, the rise of the
discounters has progressed unabated. Thirdly,
as the number of channels proliferates –
discount, traditional, hypermarket, club, dollar,
online – the blurring of boundaries between
formats continues. Food retailers are joining
other industries in developing, testing, and
refining different business models to adapt to
both new consumer demands as well as a
changing competitive landscape. The result is
that shoppers no longer distinguish between
formats; they only want their favorite products
at the best prices. In addition, and because of
these trends, margins in the retail sector are
increasingly being squeezed.
Our response to these trends is to refine
and update our formats and intensify our
e-commerce efforts while continuing to invest
in the customer proposition. Our goal is to be
known as the best in fresh, with an efficient
yet innovative assortment, delivering the best
shopping experience at the best everyday
value.
Our sustainability strategy is called “Super-
good”. Our Supergood strategy is in response
to other trends we see impacting food retail:
Our goal is to be known as the
best in fresh, with an efficient yet
innovative assortment, delivering
the best shopping experience at
the best everyday value.