224 new stores
have adapted and we will continue
to invest in price, in assortment and
in our stores. We are serious about
stepping up our efforts in the U.S. This
is also demonstrated by the appoint
ment of Roland Smith as the new CEO
for Delhaize America. He took over
from Ron Hodge who retired at the
end of the year after successfully cre
ating the Delhaize America structure
and initiating the Food Lion reposi
tioning. Roland came on board with
energy and determination to further
build and accelerate our efforts in
order to solidify and secure the future
of the operations in the U.S.
Looking at the evolution of the
market share in Belgium, it looks
like your historic base could also
use some attention.
POB: When we look at the market
share trend in Belgium, it is obvious
that we can do better and, of course,
have that ambition. There are a num
ber of elements to explain this evolu
tion. The current economic crisis and
waning consumer confidence are in
the advantage of the so-called price
players in the market. On top of that,
some of our competitors found trac
tion again and new competitors
entered the market. So yes, the bat
tleground has changed and we lost
some ground. But we know we have
the tools and the people, to regain
what we have lost. Over the last years,
we have invested heavily in the back
office, now we will focus more on our
network and on our product offering.
Delhaize in Belgium has always been
recognized as a food innovator offer
ing unique products and service. It will
be our goal in the months and years
to come to make these points of dif
ferentiation stronger than ever before.
While Delhaize Group seems
to have difficulties in its mature
markets, with the portfolio in
Southeastern Europe it clearly
has a winning hand.
POB: The performance of our newer
operations and formats, like South-
PIERRE-OLIVIER BECKERS
CEO DELHAIZE GROUP
Simplification and cost aware
ness 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.
eastern Europe, Indonesia, Red
Market in Belgium and Bottom Dol
lar Food in the U.S., was without any
doubt one of the bright spots in 2012.
In Romania, we opened at an incred
ible speed 89 new stores in 2012 and
in Indonesia Super Indo celebrated
the opening of its 100th store. As was
the case last year, our operations in
Greece weathered the tough eco
nomic conditions in the country well.
Alfa Beta succeeded again in market
share growth thanks to the consistent
implementation of its strategy, based
on low prices and affordable private
brand alternatives. Of course we are
satisfied with this performance, but
we nevertheless stay vigilant with
regards to the future of the country
within the Euro zone. Not being pre
pared would be irresponsible.
Looking forward, what are
the key priorities for 2013?
MJ: I have had significant experience
navigating through rough waters. The
most important lesson I have learned
from those experiences is that an
organization has to be focused on a
limited number of high impact priori
ties. Speed and impeccable execution
will be required to win the hearts and
the wallets of the customers and to
keep you in the game. And as I said
before, the overall priority is to con
tinue to deliver on this strategy and
increase the value for both our cus
tomers and our shareholders.
POB: In 2013, more than ever before,
our focus will be on accelerating
revenue growth and on value crea
tion. Further price investments, selec
tive store openings and comparable
store sales growth should result in
an increased top line while a ruthless
discipline in our capital allocation in
combination with a new strategic cost
plan and focus on free cash flow gen
eration should result in value creation.
By delivering on these two key priori
ties we will not only reach the other
side of the river, will be well positioned
far beyond 2013.
DELHAIZE GROUP ANNUAL REPORT '12 7
