5% to 7%
potential, we remain excited about the success
of the brand repositioning work at Food Lion
and the corresponding sales uplift we are see
ing there. And of course there is the promising
roll out of Bottom Dollar Food which we believe
is a winning store format, responsive to the cus
tomer needs.
There
are some
challenges
waiting for
us, but also
a number of
real oppor
tunities.
DELHAIZE GROUP ANNUAL REPORT '11 7
Last year Delhaize Group acquired Delta
Maxi. Will external growth contribute to
your growth aspirations?
POB: We are very proud of this transaction. It
was the first large deal we have done in almost
a decade and its strategic rationale is very
compelling. The importance of this transaction
cannot be underestimated. For Delhaize Group
this was a major step in rebalancing the port
folio towards a stronger growth profile. More
importantly the acquisition makes us a strong
regional player with significant economies of
scale and a perfect geographic fit with our exist
ing businesses in Romania and Greece. We
have some work to do to get Maxi to full poten
tial but we are very pleased with the progress
and as I said, the strategic rationale is indeed
compelling. In terms of future acquisitions, if we
can identify companies that will deliver profit
able growth and drive shareholder value then
we will pursue such opportunities.
The increased presence in Europe seems to
call for some structural or organizational
changes?
POB: Based on our successful experience with
establishing Delhaize America, we announced
in late 2011 that we would also create a
Delhaize Europe structure designed to deliver
similar benefits. The various teams started to
work on, for instance, the creation of a common
IT platform for the European operations and
other support functions, and where it makes
sense, indirect procurement,... Simply put, we
are identifying the best practices that already
exist today in the different operational banners,
we bring them together and implement them on
a higher operational level.
What about sustainability? In times of crisis
some companies are tempted to sacrifice
their budgets for this element.
POB: We maintain our belief that operating as
a sustainable company is not only an obligation
we have to our customers and the communities
in which we operate, but it is also good busi
ness, a differentiating element and therefore
good for our shareholders. So, even in chal
lenging times like these, we see no reason to
question our commitment to sustainability and
in fact, we anticipate stepping up our efforts.
What are the challenges for 2012?
POB: Given the macro outlook for 2012, it is
unlikely that we will receive much benefit from
the economic environment. So there are indeed
some challenges waiting for us, but also a num
ber of real opportunities.
Clearly we have to stay focused on the ongoing
repositioning work at Food Lion. The U.S. and
Belgium, our two largest markets by revenue,
will remain very competitive and so we need to
stay true to our identity and stay in touch with
our customers. A big challenge for all of us in
the industry will be to identify and pursue attrac
tive and profitable growth opportunities whether
they are organic or through acquisitions. To
meet these challenges we will rely on our exist
ing associates, but attracting and retaining top
talent will also be important.
We will continue to transform Delhaize Group into
an efficiently integrated global food retailer while
maintaining a strong local identity in the markets
in which we operate. I think that if we can meet
the challenges and deliver on the opportunities
I described, then that goal will become reality
and I am certain that in this process we will drive
shareholder value.
Thank you, Pierre-Olivier. Would you like to
share any final thoughts?
POB: We expect 2012 to be another challeng
ing year for all of us, suppliers, competitors and
ultimately our customers. On some level that
concerns me and gives me pause for thought.
But the truth is, I believe in the framework of the
New Game Plan and in what we stand for as a
company. I am convinced that we are making
the right decisions and investments. And ulti
mately I have a great deal of faith in my Board
of Directors, my colleagues and our associates.
Together, we remain committed to delivering
the best of Delhaize for life.
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i||
top line growth annually
from 2014.
