Belgian retail group Delhaize has reported net sales and other revenues of EUR19.2bn (US$24.8bn) for 2006, up 4.8% from EUR18.3bn in the previous year.
The results were at the top end of the company’s expectations and marked the fourth consecutive year of sales growth for the retailer. Sales growth at identical exchange rates was 5.5%, the company said. Comparable store sales in the US rose by 2.7%, and by 2.6% in Belgium.
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“We are pleased that in the fourth quarter of 2006 our operating companies were able to sustain the strong sales momentum of the first nine months of the year,” said president and CEO Pierre-Olivier Beckers. “We have been particularly pleased with the strong performances of Food Lion and Hannaford in the US, Delhaize Belgium and the outstanding sales level of Alfa-Beta, our Greek company. Our store opening programme and other planned initiatives for 2007 leave us confident that we will continue our profitable growth in 2007.”
In Europe, Delhaize Belgium posted a 6.9% increase in net sales and other revenues to EUR4.3bn. The company’s Alfa-Beta operation in Greece posted a sales increase of 13.5%, while European turnover was also boosted by the contribution from Cash Fresh in Belgium, acquired in May 2005.
The contribution of the US operations to group revenues in 2006 was US$17.3bn (EUR13.8bn), representing an increase of 4.4% over 2005.
Initiatives undertaken in the US in 2006 included the continued development of multiple products and services enhancing the in-store experience, ongoing focus on price competitiveness and customer segmentation at the Food Lion chain, the company reported. Meanwhile, the company expanded the private label offer and introduced the Guiding Stars in-store nutrition navigation system at its Hannaford stores.
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By GlobalDataDelhaize Group finished the year with 1,549 supermarkets in the US, and expects to open approximately 47 new supermarkets in the country during 2007.
For the fourth quarter, group net sales and other revenues fell by 1% to EUR4.8bn, which the company attributed exclusively to the weakening of the US dollar. At identical exchange rates, quarterly group net sales and other revenues would have grown by 4.6%, the company said.
In 2007, Delhaize said it plans to increase the sales network of its continuing operations by 101 stores. Combined with the planned sale of 97 Delvita stores, this will give the group a total of 2,709 stores at the year end. Capital expenditures (excluding finance leases) for 2007 are slated to be approximately EUR825m.
