retail news in context, analysis with attitude

The Wall Street Journal reports that Delhaize Group, which owns and gets two-thirds of its revenue from US chains Food Lion, Hannaford and Sweetbay, plans to spend as much as $1.21 billion (US) “opening new stores and remodeling existing outlets in the U.S., despite a tough retail environment which saw its same-store sales decline 0.8% in the fourth quarter.”

The Journal notes that Delhaize plans to expand its Bottom Dollar format, “a discount format focused on competitive prices and a strong share of around 50% of private-label products.”

According to the story, “Delhaize is differentiating itself from the majority of its U.S. competitors with a long-term strategy to lower prices rather than using promotions to attract customers. The company said it takes time for consumers to change their price perception, but it has started to reap the benefit of the price cuts that it introduced in January last year.”
KC's View: