n
J
Performance
Alfa Beta - Greece
Market
Strategy
Delhaize Group Annual Report 2014 43
Mega Image in Romania achieved strong
revenue growth, driven by store expansion
(410 stores at the end of 2014 compared to
40 stores in 2008) and is now the leading
food retailer in Bucharest. With competition
expanding fast and new competitors entering
the market, Mega Image aims to defend its
market position with continued profitable store
expansion and a further improved customer
proposition.
For the full year 2014, revenues in Southeastern
Europe increased by 3.2% (at actual exchange
rates) to €3.1 billion, mainly as a result of
expansion in Greece and Romania. Compa
rable stores sales evolution was -1.0% for the
year as a result of difficult market conditions in
Greece and Serbia, partly offset by a positive
evolution in Romania.
Through a combination of company-operated
and franchised stores, Alfa Beta operates
a multi-format supermarket store network
in Greece. Alfa Beta is known for its large
assortment, with an emphasis on fresh and
(1) The segment Southeastern Europe includes operations
in Greece, Serbia and Romania.
(2) Expected by 2020.
In Southeastern Europe, 2014 was a chal
lenging economic environment in Greece
and Serbia. Greece continued to experience
high unemployment and summer sales were
weak. In Romania, a largely positive economic
environment prevailed. Serbia saw continued
tough economic conditions largely as a result
of public spending cuts, and experienced retail
deflation.
Despite the tough economic environment in
Greece, Alfa Beta was able to resist the gen
eral market trend and continued to gain mar
ket share, remaining the leading food retailer
in Greece. In order to defend and strengthen
its market position, Alfa Beta will focus on store
expansion and further improve its competi
tiveness, with targeted price investments and
assortment improvements. In Serbia, despite
tough economic conditions, we began to see
the early success of remodeled Maxi stores,
where the Group began implementing its
new commercial proposition which focuses
on fresh and a new brand of communication.
In addition, a new €50 million distribution
center in Serbia will promote efficiency, support
continued network expansion, and ultimately
employ 750(2) people. Over the last six years,
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In 2014, Alfa Beta
(AB) launched a
portfolio of payment
cards with Piraeus
Bank. The scheme
is directly connected
with AB's loyalty
card program,
rewarding them with
extra loyalty points
when AB customers
use the cards.
