Delhaize maintained its positive momentum in Q1 | Progresiv
Revealing its first quarter results, Belgium-based Delhaize has underlined how the strategic initiatives it has put in place in the last year continue to bear fruit, with a good momentum in sales growth in the key markets of Belgium and the US. 
Delhaize generated total sales growth of 4.3% at identical exchange rates, 5.7% in current terms, to reach 6.153 billion euros. The retailer saw a positive performance in all its markets, with its strongest growth in its Southeastern Europe division, but with the turnaround in Belgium and the US being the key to its overall results. In the latter two markets Delhaize has been investing strongly in terms of time and money, with these initiatives likely to maintain growth in the short term.
In the US, Delhaize said comparable store sales increased by 2.6%, excluding a 0.5% negative calendar impact, with a positive performance being seen at both its Food Lion and Hannaford chains. Total sales rose by 1.9%, with both that and its comparable store figure coming in despite 1.1% deflation for the quarter, driven by price decreases in meat and dairy.
In its home market, Delhaize said revenues increased by 4.0%, driven by comparable store sales growth of 2.9%, which excluded a positive calendar impact of 1.0%. The positive result was aided by retail inflation of 2.2%, while the retailer noted the difference in performance between its company-owned stores, where it said recovery was taking longer than expected, and its affiliated stores, which were growing ‘strongly’.
In its Southeastern Europe division Delhaize said revenues rose by 17% at identical exchange rates, 16.5% at current rates, aided by ‘very strong’ comparable store sales growth of 10.8%, new stores and a 0.5% positive calendar impact. Delhaize said its performance was particularly strong in Greece, where it benefited from disruptions at some competitors and despite the market becoming more promotional and continuing deflation, and Romania, where it had managed to grow market share. In Serbia, Delhaize said same store sales grew, while it will sustain its remodelling of its existing store estate and selective expansion in the short term. (www.igd.com)
