'Overall US operating margin
increased with room for further
improvement'
United States
BI-LO
BI-LO built on its vision of being the
preferred supermarket in all its trade
areas. The company substantially
improved financial results, and sales
rose 4% to USD 3.0 billion through
281 stores in five states: South Carolina
(124), North Carolina (60), Georgia (50),
Tennessee (46) and Alabama (1).
A range of objectives and priorities were
expressed in a new strategic road map.
Everyday low pricing is the critical
component of this plan that focuses
on convenience, service, quality, perish
ables, community involvement and pro
motional items. The company improved
many of its stores through an aggressive
capital investment program. Thorough
analysis of growth patterns and popula
tion trends in existing and neighboring
trade areas revealed new opportunities
and showed the importance of an effec
tive real estate strategy rooted in the
belief that each store can be improved
to contribute to significant future growth.
BI-LO
Headquartered in Mauldin, South Carolina,
BI-LO enhanced and developed new
customer services and strong marketing
programs to attract new customers in
the region without compromising its price
image. The company grasped key oppor
tunities within its core markets by
improving its in-store offerings including
take-out food and natural and health
products. At the same time it maintained
the basic range of traditional food items
the local southeastern customer wants.
Continued sales growth and new and
expanded categories necessitated an
extensive warehouse construction and
conversion program, currently underway.
An important part of the company's
marketing strategy has been its success
ful BI-LO BONUSCARD program. What
began in 1997 as a price promotional
card has developed into a data card
offering customers not only their pre
ferred types of products and services,
but also discounted tickets to cultural
and sporting events. Over 90% of BI-LO's
sales are generated on the card and the
proprietary information it provides (with
card holders' permission) is used inter
nally and confidentially for individualized
marketing programs.
Tops
Tops Markets, headquartered in
Williamsville, New York, substantially
increased its contribution to operating
results through aggressive new marketing
programs, outsourcing services not related
to the core business and maintaining
strict cost control. Sales amounted to
USD 2.9 billion through 248 stores in
three states: New York (199), Ohio (45)
and Pennsylvania (4). Of these, eight
convenience stores trade under the
B-Kwik banner and 116 are known as
Wilson Farms Neighborhood Stores.
With a view to adding even more value
for customers and boosting sales, Tops
introduced its bonus card early in 1999,
leveraging the card marketing experience
of BI-LO. The card generates customer
loyalty while providing strong incentive
programs. Since its introduction, 2.5
million customers have applied for the
card and a significant and ever-increasing
portion of sales has been generated
through the program. In addition, creative
advertising targeted at younger customers
has given Tops a new look and appeal,
offered customers competitive pricing
and driven incremental traffic into the
stores. The company also introduced a
new, smaller prototype store, creating
the most fun and exciting place for busy
families to shop.
The company's trade area stretches from
Sandusky, Ohio in the west to Utica,
New York in the east. The transition and
renovation of 45 Finast Friendly Markets
to the Tops Friendly Markets name was
completed in the spring. In Cleveland,
the Tops stores have increased market
share and enjoy a much enhanced rela
tionship with the local customer base.
Tops is the clear market leader in Buffalo
and continued to improve its position in
20 Royal Ahold Annual Report 1999
