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What are the ingredients to
make a winning recipe?
was considered an exception with
continued attractive growth pros
pects. This is less the case in the cur
rent and more complex environment.
Food retailers, including Delhaize
Group, are challenged to find the right
answers to satisfy a customer focused
on price but not wanting to compro
mise on the expectations on quality
and sustainability. Delhaize Group
has continued to work hard to take on
that challenge with already some vis
ible results in 2012.
Pierre-Olivier Beckers: Already at
the end of 2011 we recognized that
2012 would be a difficult year. And
although we ended the year with
2.9% revenue growth at identical
exchange rates, we realize we can
do better and aim higher to claim
our position among the best-in-class
food retailers.
I have stated it before; we are in the
middle of the river. We have left the
shore of steady healthy margins and
low revenue growth and decided to
go to the other side where we will
be able to achieve sustainable and
higher growth. It is true that the water
is rougher than we had expected, but
we have already made some signifi
cant moves in the right direction by
investing in prices at all our banners,
strengthening our presence in higher
growth markets and developing new
store formats.
MJ: Crossing a wild river requires fast
and decisive action and that is what
we are doing. We have made and will
continue to make the necessary deci
sions in the coming months to make
sure that we reach the other side of
the river as a stronger company.
What decisions do you have
in mind?
POB: Through the years, our com
pany grew considerably in size and
complexity. In the current environment
it is critical to increase our agility. We
are therefore determined to reduce
the complexity of the organization
and increase the speed of decision
making. Our mindset is really chang
ing in this respect. Simplification and
cost awareness is really becoming
everyone's focus. Because retail is
detail, we need to turn every penny
twice before we spend it and when
we spend it, it has to benefit both the
customer and the company.
MJ: We are operating in an indus
try that is going through important
changes and that is facing impor
tant challenges, so it is of the utmost
importance that we keep our struc
ture and our procedures simple. In
2013, we will continue to strengthen
our focus on cost control and capi
tal allocation discipline. In times like
these, you must focus your resources
even more than usual and you need
to come up with the best of what
you have. For everything you do. The
best chef makes the tastiest dishes
with the simplest ingredients and
resources.
MJ: If you are at the end of the value
chain, you have to be extremely cus
tomer oriented. You have to under
stand what the customer needs,
monitor the trends and challenge
yourself to verify that you are posi
tioned correctly to fulfill the long term
demands of the customer. And in
order to have enough room to invest
in the customer offer, you have to
search continuously for productiv
ity improvements. You have to be
extremely efficient in all parts of the
value chain, from the supply chain, to
the wholesale operations and finally
on the store level. I am convinced that
we are making the right moves and
are on our way to reach this level.
A third element is that as a company,
you need to be able to attract talent.
At Delhaize Group we have devel
oped strong programs to achieve this
goal. In addition to those, our very real
and lively values are a strong point of
attraction for young talent.
DELHAIZE GROUP ANNUAL REPORT '12 5
