abhishreshthaa
Abhijeet S
Delhaize Group is a food retailer headquartered in Belgium which operates in eight countries and on three continents. The principal activity of Delhaize Group is the operation of food supermarkets.
Delhaize Group was founded in Belgium in 1867.
As of 31 December 2006, Delhaize Group had a sales network (which includes directly operated, franchised, and affiliated stores) of 2,705 stores and employed approximately 140,000 people. Store formats are primarily supermarkets, which represent 85% of Delhaize Group's sales network. Delhaize Group's sales network also includes other store formats such as neighborhood stores, convenience stores, and specialty stores.
In addition to food retailing, which accounted for approximately 95% of Delhaize Group's sales in 2005, Delhaize Group also engages in food wholesaling to stores in its sales network and in nonfood retailing of products such as pet products and health and beauty products.
Strengths
* Senior Management
* Capital availability
* Leadership from Hannaford and its parent company
* Northern operations still less affected by Wal-Mart
* Market renewals (capital expenditures plan)
Weaknesses
* Not the best real estate
* Low sell-through in older stores
* Existing brand for perishables still weak (i.e., at Food Lion)
* Softer than expected sales at the acquired Victory stores
Opportunities
* Store segmentation/shopper analytics
* Re-branding (Bloom, Bottom Dollar) and market renewals/remodels
* Format innovation that allows customization by market
* Best practice transfers amongst banners
Threats
* High levels of competition from good traditional operators (Harris Teeter, Wegmans)
* Publix moving north
* Pressure in operating margins due to higher capex and remodels
* Faces Wal-Mart on virtually every market
Delhaize Group was founded in Belgium in 1867.
As of 31 December 2006, Delhaize Group had a sales network (which includes directly operated, franchised, and affiliated stores) of 2,705 stores and employed approximately 140,000 people. Store formats are primarily supermarkets, which represent 85% of Delhaize Group's sales network. Delhaize Group's sales network also includes other store formats such as neighborhood stores, convenience stores, and specialty stores.
In addition to food retailing, which accounted for approximately 95% of Delhaize Group's sales in 2005, Delhaize Group also engages in food wholesaling to stores in its sales network and in nonfood retailing of products such as pet products and health and beauty products.
Strengths
* Senior Management
* Capital availability
* Leadership from Hannaford and its parent company
* Northern operations still less affected by Wal-Mart
* Market renewals (capital expenditures plan)
Weaknesses
* Not the best real estate
* Low sell-through in older stores
* Existing brand for perishables still weak (i.e., at Food Lion)
* Softer than expected sales at the acquired Victory stores
Opportunities
* Store segmentation/shopper analytics
* Re-branding (Bloom, Bottom Dollar) and market renewals/remodels
* Format innovation that allows customization by market
* Best practice transfers amongst banners
Threats
* High levels of competition from good traditional operators (Harris Teeter, Wegmans)
* Publix moving north
* Pressure in operating margins due to higher capex and remodels
* Faces Wal-Mart on virtually every market