UNITED STATES
Delhaize America continues to deliver the highest contribution to Delhaize
Group revenues with 63% of Group revenues. Through Food Lion and
Hannaford, the company operates with two different store formats. At the end
of 2014, Delhaize America operated 1 295 stores(1), in 15 states spread along
the east coast of the United States.
Market
Strategy
ASSOCIATES AT
HANNAFORD RISE TO THE
CHALLENGE TO MEET THE
NEEDS OF CUSTOMERS
Delhaize Group Annual Report 2014 37
In 2014, the U.S. saw increased customer
confidence driven by a number of positive indi
cators such as an improved job market, lower
gas prices and a strengthening real estate
market. This optimistic scenario was partly
offset by continued dynamic competition, food
price inflation and other important commodity
increases: while core inflation remained low
at around 0.8% year on year, food related
inflation was 3.7%(2) annually.
In an environment of continuing recovery,
Delhaize America continued to focus its
efforts and further differentiate its banners,
as Food Lion began to roll out its "Easy,
Fresh Affordable...You Can Count on Food
Lion Everyday!" strategy. As part of the new
strategy, the company focused on enhancing
Many Hannaford supermarkets in
Massachusetts and New Hampshire
experienced a major increase in
business for five weeks during the
summer when a key competitor in
those states experienced disruption
in its business. Hannaford mobilized
its distribution, retail operations and
support functions rapidly to maintain
product inventory and provide
excellent customer service.
customer service in the store, expanding
assortment across its footprint, and ensuring
the customers always have fresh products
available. Hannaford drove sales around its
brand promise of providing quality fresh foods,
great service, dependable value and being
part of the community. Consistent with the
Group's strategy of focusing on core markets,
the sale of Bottom Dollar Food was announced
in November. The transaction was completed
early 2015.
(1) Does not include 66 Bottom Dollar Food stores and
2 040 related associates. In November 2014, Delhaize
Group signed an agreement to sell its Bottom Dollar
Food store locations to ALDI Inc. The stores were closed
on January 12, 2015 and the transaction completed
early 2015.
(2) Bureau of Labor Statistics, Food at home figure;
http://www.bls.gov/news.release/cpi.nr0.html
