cooking
event
Supermarkets - Delhaize
Affiliated supermarkets - AD Delhaize
Company operated urban convenience
stores - City
Affiliated convenience stores -
Proxy and Shop 'n Go
Low-cost low-price supermarkets -
Red Market
Everything for your pet stores - Tom Co
Delhaize Belgium generated €4.9 billion in revenues in
2012, an increase of 1.6% compared to 2011. The 2012
growth numbers were a combination of both a positive
comparable store sales evolution of 0.6% and network
growth. In total 35 new stores were opened in 2012 and
9 stores were remodelled in line with the New Genera
tion Store Concept that was launched at the end of 2011.
The affiliated store model for supermarkets and con
venience stores was once again a strong pillar in the
network growth model in 2012.
During 2012, Delhaize Belgium's gross margin
decreased by 71 basis points to 20.3% of revenues as a
result of price investments. Selling, general and admin
istrative expenses decreased by 6 basis points to 16.7%
of revenues mainly as a result of a payroll tax refund
related to prior year partly offset by the impact of auto
matic salary indexation.
Total capital expenditures at Delhaize Belgium
amounted to €153 million, compared to €142 million in
2011.
With 146 company-operated stores, Delhaize "Le Lion"
is the leading supermarket banner of Delhaize Group
in Belgium and Luxemburg. The strengths of Delhaize
"Le Lion" are its assortment of high quality and afford
able products, its broad private brand assortment with
both innovative and low price items, and its emphasis
on customer service.
Just like the company-operated Delhaize "Le Lion" ban
ner, AD Delhaize is a supermarket banner but operated
by independent owners. These stores are similar but on
average smaller than the company operated supermar
kets. Our affiliated stores continue to be the most impor
tant contributor to Delhaize Belgium's growth. In 2012
another 24 supermarket affiliates joined the network
throughout Belgium and Luxemburg.
In 2012 Delhaize Group decided to convert its 15 com
pany-operated City neighborhood stores in Belgium into
independent Proxy stores. As such they will benefit from
the greater flexibility needed to run urban stores and will
be able to better adapt to their specific environment. In
Luxemburg Delhaize continues to operate 3 City stores.
Proxy is a convenience store format with a focus on
fresh products and private label products. In 2012 the
Proxy network expanded with 18 new stores, The Shop'n
Go stores are small convenience-oriented and located
mainly at gas stations. They are responding to custom
ers' expectations on proximity, convenience, speed and
longer operating hours.
Red Market supermarkets are newer concept stores
that combine high quality products, private as well as
national brands, new technologies and ease of shop
ping with helpful associates and very low prices. The
first two Red Markets were opened in 2009. With the
addition of two more new stores in 2012, the Red Mar
ket network reached a total of 9. Striking and humor
ous add campaigns, like hiding piggy banks with Red
Market vouchers in big cities to raise brand awareness,
underlined the dynamics around the youngest Delhaize
Belgium banner.
Tom Co is the leading pet food chain in Belgium. The
136 stores sell pet food, care products, care services and
accessories for pets. In 2012, Tom Co launched Tom
Care, "health insurance" for animals. It is sold exclusively
at Tom Co and is unique in its kind.
Delhaize Belgium wants to be recognized as an
expert in nutrition, in excellent food and in culinary
trends. The company considers it as part of its mis
sion to guide and inspire customers for both their
everyday as well as their festive cooking. So for the
year-end holiday season in 2012, Delhaize Belgium
gave its customers the unique opportunity to take a
cooking class with five of the most important Chefs
in Belgium: Peter Goosens, Lionel Rigolet, Yves
Mattagne, Wout Bru and Bart Desmidt. This was the
second largest cooking event ever organized world
wide. No fewer than 18 000 candidates signed up
for the experience and 1 600 were eventually cho
sen to be guided by the five chefs who collectively
have earned nine Michelin Stars.
DELHAIZE GROUP ANNUAL REPORT '12 33
