Supermarkets - Delhaize
Affiliated supermarkets - AD Delhaize
Company operated urban convenience
stores - City
Affiliated convenience stores -
Proxy and Shop 'n Go
Low-cost supermarkets - Red Market
Petfood stores - Tom Co
Affiliated
stores
continue to
be the most
important
contributor
to Delhaize
Belgium's
growth.
AWARD WINNING
DELHAIZE GROUP ANNUAL REPORT '11 31
ment in supplier terms were used to fund price
investments Selling, general and administra
tive expenses increased by 24 basis points
to 16.8% of revenues mainly as a result of the
negative impact of automatic salary indexation,
partly offset by cost saving efforts. Operating
profit increased by 2.7% while the operating
margin of Delhaize Belgium increased to 5.0%.
Total capital expenditures at Delhaize Belgium
amounted to EUR 142 million, an increase of 11%
compared to the previous year.
With 141 stores Delhaize "Le Lion" is the leading
supermarket banner of Delhaize Group in Bel
gium. The strengths of Delhaize "Le Lion" are its
assortment of high quality and affordable prod
ucts, its broad private brand assortment with
both innovative and low price items and its high
service level. In 2011, Delhaize Belgium rolled
out its New Generation Store concept, which
further improved the shopping experience.
The affiliated store model for supermarkets and
convenience stores was in 2011 again a strong
pillar in the network growth model. AD Del
haize is also a supermarket banner, but oper
ated by independent owners. They are similar
but somewhat smaller than the company oper
ated supermarkets, and carry a slightly smaller
assortment. Our affiliated stores continue to be
the most important contributor to Delhaize Bel
gium's growth. In 2011 another 25 supermarket
affiliates joined the network.
Delhaize City stores are operated as neigh
borhood stores. In an urban environment they
offer a medium size assortment and target the
immediate needs of customers.
Similar to Delhaize City, Proxy is a convenience
store format operating mini-markets with a
focus on fresh products and private label prod
ucts. Shop'n Go convenience stores are located
at gas stations and are a response to custom
ers' expectations on proximity, convenience,
speed and longer operating hours.
Red Market supermarkets are new concept
stores that combine high quality products, pri
vate brands as well as national brands, new
technologies and ease of shopping with help
ful associates and very low prices. The first two
Red Markets were opened in 2009. At the end of
2011, we had 7 stores in the Red Market network.
Tom Co is the leading pet food chain in Bel
gium. The 137 stores sell pet food, care prod
ucts, care services and accessories for pets.
At the end of 2011 the portfolio expanded geo
graphically with the opening of a first new store
in France. We used that opportunity to introduce
a new store concept that will be rolled out in
the rest of the network in Belgium and Luxem
bourg.
Supply Chain Award 2011 (VIB and PICS) for Fresh2 warehouse
Award for the best financial team of the year (CFO Magazine)
Retail Technology Award Europe 2011 in the category Best
Customer Experience for Red Market (EHI Retail)
