Food Lion 2014 Annual Report Download - page 40

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new strategy, Food Lion unveiled 76 remod-
eled stores in the greater Wilmington, North
Carolina, and greater Greenville, North Caro-
lina, markets with plans to remodel 160 stores
in 2015. In addition to the new strategy, the
banner made other improvements, such
as all store associates receiving “Count on
Me” customer-centric training and imple-
menting a new point of sale system in 929
of its 1 108 stores. The remaining stores were
completed in February 2015.
Food Lion also continued to leverage the price
investments of the past several years and built
on those by rolling out a new assortment to
better meet the evolving needs of customers.
Growth continued across the Food Lion banner
from these price investments, as well as
continued emphasis on supply chain effi ciency
and controlling costs across the banner. As a
result, all markets continued to see year-over-
year growth.
Hannaford
Food Lion
1 295(1)
stores
15
states
Performance
For the full year 2014, Delhaize America gen-
erated revenues of €13.4 billion, an increase of
6.6% (4.5% excluding the 53rd week) over 2013
in local currency supported by comparable
store sales growth of 4.4%. In 2014, the U.S.
gross margin decreased by 22 basis points
to 25.9% as a result of price investments.
Selling, general and administrative expenses
as a percentage of revenues decreased by
39 basis points. The underlying operating
margin increased by fi ve basis points to 4.1%.
This was a result of lower selling, general, and
administrative (SG&A) expenses as a percent-
age of the revenues ratio more than offsetting
the lower gross margin.
Food Lion
2014 was a transformational year for Food
Lion. The banner announced its new strategy:
“Easy, Fresh & Affordable...You Can Count on
Food Lion Everyday!”. Executing against the
PERFORMANCE
1 108 187
Southeast and
Mid-Atlantic
Northeast
sq.ft. 24 000 25 000 - 55 000
25 000 25 000 - 46 000
(1) Does not include 66 Bottom Dollar Food stores. In November 2014,
Delhaize Group signed an agreement to sell its Bottom Dollar Food store
locations to ALDI Inc. The stores were closed on January 12, 2015 and the
transaction completed early 2015.
(2) An explanation of the icons used in the legend can be found in the
Glossary.
KEY FIGURES (AS OF DECEMBER 31, 2014)
(1)(2)
63%
of Group revenues in the U.S.