Delhaize, the Belgium-based food retailer behind US chains including Food Lion, Hannaford and Sweetbay, is to close 16 outlets across the Atlantic in a bid to drive profits from the business.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company, among the world’s 40 largest retailers according to data from Deloitte, is to shutter 15 “under-performing” Food Lion stores and one Bloom outlet.
The closures come as Delhaize embarks on a wider restructuring programme in the US that will see support functions including IT, finance and human resources serve the group’s entire business across the pond.
“The support functions for Food Lion, Bloom, Harveys, Bottom Dollar Food, Hannaford and Sweetbay will be integrated within Delhaize America,” the retailer said.
“The goal of these common shared services is to create greater efficiencies and scale, eliminate redundancies, become more flexible in the integration of acquisitions, and ultimately better serve our banners and customers.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDelhaize also plans to open between 50 and 55 new supermarkets in the US and “significantly increase” the number of Bottom Dollar Food stores in 2010.
The store closures will lead to a one-off charge of EUR23m but Delhaize said the moves will boost operating profit each year by around EUR6m.
Earlier today, Delhaize said it expects operating profit to grow by 1 to 4% in 2009 at identical exchange rates, excluding the charges related to a restructuring programme in the US.
Shares in Delhaize dipped today after the company posted slowing fourth-quarter sales growth as food prices in the US fell.
