Belgian retailer Delhaize has announced an increase in revenue of 2.8 per cent for the first quarter of 2014, with comparable store sales growth of 4.6 per cent in the US and -0.8 per cent in Belgium.
The group's underlying operating profit stood at €161m, with a margin of 3.1 per cent (3 per cent in the US, 3.1 per cent in Belgium).
President and CEO Frans Muller attributed the growth in its US stores primarily to the 'continued momentum at Food Lion'.
The disappointing results in Belgium Muller put down to the 'vigorous competition', demanding 'more promotions and price investments'.
'In Belgium, we are working on further differentiating the customer experience in our stores,' he said. 'The opening of two next generation stores in Belgium 10 days ago, bringing to life our new strategy centred on 'buy well, eat well', is an important step to improve our performance.'
In Greece and Romania, Delhaize reportedly saw further gains in market share, while in Bulgaria and Bosnia & Herzegovinia it has recently signed agreements to divest its operations, as the company looks to focus on its core markets.
'We reiterate that, for 2014, our capital expenditures will increase to approximately €625m at identical exchange rates and we plan to open 180 stores,' Muller said. 'We also intend to continue to generate a healthy level of free cash flow.'
No comments yet