The European publication Le Soir reports that Delhaize Group president and CEO Pierre-Olivier Beckers is not worried about an outside company making a takeover bid for Delhaize, despite the fact that the company’s share price has dropped.
Noting that all US retailers are suffering from "the slowing of consumption,” Beckers said that Food Lion will not engage in a price war with its competitors because its prices are “permanently low.” He reiterated that the company will engage in cost cutting and efficiency initiatives.
Beckers conceded that perhaps this cost cutting should have been done a few years ago.
He also said, according to Le Soir, that the once Delhaize completes its cost-cutting and stabilizes its operations, it may well pursue new acquisitions, probably in Europe.
Noting that all US retailers are suffering from "the slowing of consumption,” Beckers said that Food Lion will not engage in a price war with its competitors because its prices are “permanently low.” He reiterated that the company will engage in cost cutting and efficiency initiatives.
Beckers conceded that perhaps this cost cutting should have been done a few years ago.
He also said, according to Le Soir, that the once Delhaize completes its cost-cutting and stabilizes its operations, it may well pursue new acquisitions, probably in Europe.
- KC's View:
- We thoroughly agree with the notion of not engaging in a price war. Rather, Food Lion has to make the cuts and find the things that make it special…and then pound them home to consumers.
