Food Lion 2014 Annual Report Download - page 9

Delhaize Group Annual Report 2014 • 7
MJ We are facing challenges, including slow
growth and increasing consolidation in the
markets where we operate. In order to remain
relevant in our markets and pursue growth,
we need to continue to bring cost levels down
while at the same time maximizing the poten-
tial of our assets and refusing to compromise
in terms of delivering an excellent product
to our customers. We need to mobilize the
energy of our associates. Our biggest asset
as a company is our people and their energy.
We need to work harder to engage them,
capture their creativity and innovation while at
the same time work to support their personal
development.
What will Delhaize Group look
like in five years’ time?
MJ In all our markets we want to look back in
five years’ time having gained market share,
being recognized as a top employer, and hav-
ing reached or exceeded our 2020 sustaina-
bility targets. We expect to have high operating
efficiency, at all steps in the supply chain and
to have increased return on invested capital
(ROIC).
FM We want to be in a leadership position
in all of our core markets. We want to have
delighted customers. But to do this we have
work to do on our IT systems and infrastructure
to ensure that they are up to date and can
support future growth. We want to be able
to deliver on customer expectations with our
digital and online platform, and accelerate our
share of online sales. Above all we want to be
in sustainable leading positions vis-à-vis our
customers, our associates, and our suppli-
ers. We want to lead in creating value for our
shareholders.
The focus we apply to the segments and
markets in which we want to compete will be
applied to everything we do, by everyone in
our company and will be integrated com-
pany-wide into the incentive targets for our
officers. We believe this focus will benefit all
our stakeholders. Because our focus is our
customer and we will operate our customers’
preferred local supermarkets!
increasing from 54% currently to 80% by 2020;
achieving a 20% reduction in greenhouse gas
emissions by 2020 against a 2008 baseline
through continued energy reduction use and
better refrigerants; employing a more diverse
and inclusive team of associates to better
serve our local neighborhoods; and offering
the most sustainable private brands.
Looking forward, what is the
outlook for 2015 and how
does this fit into your strategic
thinking?
FM I see opportunities in making our banners
more competitive and being more cost-con-
scious as a Group, with the overall goal of
creating value in line with our peers. At the
same time we will never compromise on our
focus on the customers: providing them with a
great local shopping experience at a reason-
able price.
Following the streamlining of our portfolio in
2013 and 2014, we aim in 2015 to support
growth opportunities at all our banners. At Food
Lion, we will further refine and deploy our Easy,
Fresh & Affordable strategy in 160 additional
stores, and at Hannaford, we have the ambi-
tion to accelerate growth. In Belgium, we are
looking to implement the Transformation Plan,
improving our customer offer, modernizing
our network and further developing our online
channel. In Southeastern Europe and Indonesia
we will continue to expand. Across Europe we
intend to maximize the potential benefits of
Coopernic, our new European buying alliance.
Finally, we remain disciplined with respect to
capital allocation.
What is the largest opportunity
for 2015 and beyond?
FM I believe the company has a solid base
from which I have had the good fortune
to start. We have terrific and locally robust
brands, and we are number one or number
two in most of our local markets. However, in
order to build on these positions, we need to
continue to focus on our core markets in order
to further differentiate our value proposition.
We will also be more commercially aggressive
in 2015, as we aim to better communicate our
offer and our strengths to our customers. I am
convinced these efforts, coupled with our push
into digital and omni-channel food retailing
provide us with a positive outlook for Delhaize
Group.