LEAD LOCALLY Renovation of Alfa Beta flagship store BEING SUPERGOOD BY DOING GOOD BUSINESS DRIVE PROFITABLE GROWTH TODAY AND BEYOND Opening a new distribution center in Serbia Delhaize Group Annual Report 2014 27 In 2014, there has been a vast rethinking of product categories with Alfa Beta introducing new concepts as well as new product lines. More specifically, the renovation of our Elliniko store (Athens), one of the largest Alfa Beta stores, established a whole new store concept: Products in bulk such as dry nuts, premium chocolate, coffee and tea as well as the usual categories of products, adding a significant competitive advantage; A newly developed special beverage area in the same store accommodates an extensive assortment from Greek and international vineyards and even has a controlled temper ature room to store premium wines as well as a vending machine for testing wines; An on-site bakery and an in-store pastry shop that offers a wide range of custom recipes and extremely fresh products; Unprecedented varieties of local and imported cheese, various deli products as well as marinated fresh fish and meat with a strong relationship between quality and price. Our new distribution center in Serbia will strengthen operational efficiency and improve Delhaize Serbia's ability to provide the best in fresh products to customers. DOW JONES SUSTAINABILITY INDEX The Dow Jones Sustainability Index measures company performance in economic, social, and environmental dimensions. The top 10% of performers in each sector are selected for the World Index. Our efforts were recognized during the previous two years and therefore we made it into the DJSI. In 2014 however, we fell short. In 2015, our goal is to get back in the DJSI, recognized again as a leader in our sector. In order to do so we will be using the DJSI more clearly as a benchmark tool to identify improvements in how we manage environmental and social topics across the business. Our investors will benefit as being a sustainable retailer positions us for stronger future business performance. Our Supergood goals, especially in the areas of sustainable private brands and zero waste help us to uncover new sales opportunities and push us to operate more efficiently. Being Supergood is, quite simply, good business. Our new distribution center (DC) in Serbia, which opened in November 2014, will strengthen our operational efficiency and profitability and provide fresh products to our customers. Delhaize Group invested €50 million in the construction of the distribution center. A key priority for the distribution center was to transfer our international experience and knowledge in this area to the Serbian market and through this continue running our operations at the highest standards. The DC will serve around 800 suppliers and employ 750 people by 2020; around 400 associates worked in the DC at the end of 2014. In line with our Supergood sustainability strategy, the distribution center was built with environ mentally-responsible construction materials, energy efficient heating and cooling systems, LED lights and motion sensor systems - part of our commitment to buildings with lower environmental footprints.

Jaarverslagen | 2014 | | pagina 29