| Delhaize
Group Launches
New 365 Brand In Europe
BY HÉLÈNE DEGRYSE

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| Delhaize
Group is employing large in-store displays-as seen here for
its carbonated beverages-to introduce the new 365 Brand of everyday
value private label throughout its trading area in Europe. |
The new pan-European private label line is being
introduced in its 970 stores located in Belgium, Greece, the Czech
Republic, Romania, Slovakia, and Luxembourg under a variety of store
banners.
In May 2004 Delhaize launched a new low price private
label range called "365" with basic products available
at an everyday low price and for everyday use.
Historically, Belgium is the home market of Delhaize
Group. It is where the company opened the first totally self-service
supermarket, Delhaize Le Lion in Europe in 1957.
Today, Delhaize enjoys a strong market position and
ranks second in Belgium in terms of sales. There are now 125 Delhaize
Le Lion supermarkets in Belgium which all offer customer service
and a pleasant shopping environment and feature a huge assortment
of high quality products at competitive prices.
The AD Delhaize supermarket format started in 1983 and now includes
about 200 stores in Belgium and one in Luxembourg. Most of AD Delhaize
stores are open on Sunday. Delhaize Group considers this store format
to be its most important growth vehicle today.
In addition, Delhaize Group operates 188 convenience
stores under three different names: Proxy, Shop 'n Go and City.
Proxy Delhaize is a convenience store with a large
offer of fresh products and private labels.
The Shop 'n Go convenience store is a gas station
store with longer operating hours.
The City store is a strategically located neighborhood
store which exclusively sells Delhaize private label products.
Delhaize also operates its own online retailing website:
www.caddy-home.be at which grocery orders can be placed online for
delivery at home. Of course, customers can also place orders to
Caddy-Home by phone and by fax.
In addition to all of its food retailing activities,
Delhaize also operates 134 Di shops (drugstore and beauty product
store) and Tom & Co, (a pet food and accessories store). Both
these store formats are number one in their respective sectors in
Belgium.
Other European Formats
Delhaize started to expand its store operations into
southern and central Europe at the beginning of the 1990s and now
the group operates various retail formats in several countries.
Today, Greece is the strongest of these markets for
Delhaize Group with 89 supermarkets called Alfa-Beta, 20 convenience
shops called Trofo, and 10 cash & carry stores called ENA Cash
and Carry.
The focus of the stores in Greece is offering good quality, fresh
products and good service for a good price. Delhaize stores are
geographically spread and are number two in the country in terms
of sales. Delhaize employs 6453 people in 119 stores across the
country.
In the Czech Republic, since 1991 Delhaize has operated
94 stores under the name Delvita supermarkets and convenience stores.
In 1998, it introduced the Delvita format into Slovakia with 14
supermarkets under that name.
The Delvita stores offer the best quality and service
for the best price. The shops are strategically located in various
cities of both countries, and Delvita is Prague's number one supermarket
chain. Delvita recently increased its assortment of private label
products from 100 to 500 products. PL products represented 5% of
the total turnover in 2003 compared to 2% a year before. Delvita
also introduced new products on those markets such as pre-packaged
salads, fresh fruit juices and Italian gourmet products.
Finally, Delhaize runs 15 supermarkets in Romania
under the name Mega Image. This store format is number one in Bucharest.
365 Brand
Delhaize Group launched the new 365 brand on the 19th
of May this year. This PL brand was first sold in Belgium and Greece
and was then introduced into all the other European markets of the
group. This new 365 brand offers basic products sold at a constant
low price all year long, 365 days a year. The peculiarity of the
365 brand is that it is sold under the same name and packaging in
the group's different countries and in the different store formats
within the countries.
The 365 assortment is made up of low-price items meeting
the everyday and seasonal needs of customers. The first products
have been launched in the following departments: grocery, frozen
food, beverages, dairy, fruit and vegetables as well as wine. The
365 assortment is constantly being expanded with new products that
shall reach 300 items by the end of 2004 in Belgium and Greece.
At the same time, about 50 items will be available in the Czech
Republic, Slovakia and Romania.
The prices set for the 365 product line match the
prices offered by the hard discounters within the countries in which
Delhaize Group competes.
To ensure a constant quality for the whole 365 product
line, suppliers comply with the BRC standard as well as with various
other strict quality criteria. (BRC stands for British Retail Consortium
that has established a comprehensive quality system for European
retailers.) Moreover, the quality of products is routinely checked
by external laboratories.
A strategy of bulk purchasing provides lower production
costs. The packaging for the 365 PL line is dynamic and identical
for all markets. It represents a common logo: a lion in a sun against
an orange background on top of 365. The description of the product
is presented in up to 8 languages (French, Dutch, German, Greek,
Czech, Slovak, Romanian and English). This unity conveys a strong
European identity to the line but also reduces development and production
costs.
Delhaize's aim is to simplify shopping for its customers.
When all the 365 PL line products are available, Derby products-the
Delhaize private label that competes with the hard discount stores
and C-brands products-will disappear. This will simplify the offer,
amplify the role of the 365 PL line and clarify the shopping shelves
for an even more convenient and pleasant shopping experience true
to the group's motto "Everyday fair price."
PL's Role at Delhaize
PL products account for almost one third of Delhaize turnover in
Belgium and are really the backbone of Delhaize different retail
formats in the country. PL products at Delhaize are truly innovative
articles that inspire A-brands. Delhaize's innovative approach to
PL products is illustrated in the ready meals sector with 200 prepared
meals sold under their PL brand. Delhaize has worked in collaboration
with Pierre Wynants, the renowned cook at "Comme chez soi,"
the 3 Michelin star restaurant in Brussels, to carry a range of
premium and inventive fresh chilled meals that are 10 to 15% cheaper
than A-brand products in the same category.
Delhaize was also a pioneer in terms of PL organic products. The
retailer sells more than 600 organic articles today. It all started
in 1985 when Delhaize sold the first organic bread in supermarkets;
in 1998 the retailer started its own organic PL range. The sales
of organic products at Delhaize represent more than 80 million euros
and Delhaize is Belgium's number one retailer of organic products.
Delhaize organic PL range uses the sub-brand Bio. It is the symbol
for quality, food safety and traceability, and it is a key player
in a country that has been confronted to many food safety crises
in the recent past.
Delhaize offers over 5,000 private label items in its Belgian stores.
New strategic initiatives at Delhaize Belgium include:
- New point-of-sales system to reduce transaction times and training
time;
- New data synchronization project to reduce invoice handling
and errors;
- New distribution center for slowing items that is expected
to increase labor productivity by 12%.
Outside Belgium, the other Delhaize Group stores also sell their
own private label ranges under different names.
On the Greek market, Alfa-Beta offers a very broad and varied private
label assortment to its customers. This assortment has recently
been completed with new value-added products and new labels. The
Multicultural Tastes range offers frozen ready to eat meals illustrating
culinary traditions from all over the world.
The Vita Care range sells wellness and personal care products.
The AB Choice range includes fresh products and is the result of
a close and exclusive collaboration between the retailer and its
suppliers.
Finally, the Alfa-Beta Close to Greek Nature range offers top quality
regional products often from small local producers.
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