Q4 soft, full year up for Delhaize America
SALISBURY, N.C. — Delhaize America, the U.S. division of Delhaize Group, saw a decrease in underlying operating profit prompted by soft sales, an increase in operating expenses to support growth projects and price investments for fourth quarter 2011.
Despite revenue increasing to nearly $4.8 billion for the quarter, compared with $4.72 billion in the year-ago period, Delhaize said underlying operating profit decreased by 20.3% to $243 million, while underlying profit margin was 5.1%, compared with 6.5% in 2010. Meanwhile, the company said its operating margin was 1.6% due to $183 million in impairment charges that were related to the portfolio optimization, which included the expansion of Bottom Dollar Food and the repositioning of the Food Lion banner.
Despite challenging economic conditions, the overall year, however, proved positive. Revenue for Delhaize America increased 2.2% to $19.2 billion, while comparable-store sales rose 0.7%. The company operated 1,650 supermarkets in the United States for the year, as a result of the opening of 33 stores (13 of which were Bottom Dollar Food stores) and the closing of 10 stores, which resulted in a net addition of 23 stores to the U.S. network.
“We remained focused on the execution of our New Game Plan throughout 2011, launching a number of growth initiatives across the group, designed to strengthen the foundation of our business and support its growth potential," Delhaize Group CEO Pierre-Olivier Beckers said. " At Food Lion, where repositioned stores in the Raleigh market recorded positive volume growth since their launch in May 2011, we are determined to move faster with the repositioning of our brand and implement it in 600 to 700 additional stores in 2012. During the fourth quarter of 2011, the revenue growth in our other U.S. markets was impacted by our decision to pass on cost inflation to retail prices in the face of a very competitive environment. While soft revenues and costs related to our growth initiatives in the U.S. negatively impacted our fourth-quarter results, we are convinced that the projects we are focusing on are the right ones for our company. With Bottom Dollar Food, we have developed a growth vehicle for the U.S. The growing revenue momentum we have experienced in the Philadelphia market during 2011 indicates to us that we will be able to significantly grow this format. Our recent successful entry in the Pittsburgh market further confirms our outlook.”
For 2012, Beckers said the company will continue its price competitiveness, leverage its private brands, open more stores and boost store remodels as well. "Each of these initiatives will support our plan to accelerate revenue growth as defined by our New Game Plan," he said.
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Target to remodel general merchandise stores to include fresh food layout
MINNEAPOLIS — Target is set to complete remodels for more than 100 general merchandise stores later this month, the retailer said. The remodeled Target stores will dedicate approximately 10,000 sq. ft. to a vast array of fresh food choices, including a curated assortment of fresh produce, fresh packaged meat and pre-packaged baked goods, in addition to dry and frozen offerings.
Nearly 900 Target stores currently offer the expanded food layout. Target said that in addition to the 100-plus stores that will be overhauled this month, the retailer expects to remodel a total of 230 general merchandise Target stores to incorporate the expanded fresh food layout in 2012. A list of the stores that will receive the expanded grocery layout can be found here.
“Bringing fresh food to Target means our guests only have to make one stop to stock up on all of their essentials,” Target SVP grocery Annette Miller said. “This year, even more of our guests will experience the added convenience of one-stop shopping as we remodel hundreds of additional Target stores and bring our fresh food layout to markets across the country.”
In addition to the grocery aisles, most of the Target’s new and remodeled general merchandise stores also feature updates in other areas, including more visual beauty aisles; wider aisles and lower product displays in the home department; additional seating and mirrors in the shoe department and broader visibility between baby gear, supplies and apparel in the baby department.
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Energizer showcases new collections at International Home and Housewares Show
ST. LOUIS — Energizer said it will showcase its full home lighting portfolio and debut its newest home décor category, flameless wax candles, at the International Home and Housewares Show.
The company said it will present its Ambiana collection, a modern line of household lighting that includes accent lighting and a well-designed desk light; the Glas line, which includes flameless candles, a task light, an under-cabinet light and a path light; the Edge line, which includes LED lights and flameless candles and the newly-launched flameless wax candles.
“We have a history in lighting technology and a brand that consumers know and trust, so this category is a natural extension for us. Our vision is to give people the remarkable home lighting they want that fits their lifestyle,” says Anne Bannister, VP strategic ventures for Energizer. “We are looking forward to unveiling the full 2012 offering at the International Home and Housewares Show and to hearing reactions from buyers and media attendees.”