Belgian retailer Delhaize has said it is on track to cut costs by €100m (US$117m) this year at its US Food Lion supermarket chain.
“We are working on cutting our costs generally,” Delhaize chief executive officer Pierre-Olivier Beckers was quoted by Reuters as saying. “First-quarter results show our ability to make savings very quickly.”
Delhaize generates around 80% of its sales in the US, but its Food Lion unit has been hit by fierce competition, especially from discount retail giant Wal-Mart.
Beckers said that rather than trying to compete head-on with Wal-Mart, Food Lion would try to be different. He added that Food Lion was working on increasing its fresh food products offering and improving customer service and convenience.
Beckers also reaffirmed that Delhaize would not be interested in taking over any of Dutch retailer Ahold’s US assets.