Delhaize planning European expansion
number of European markets, tapping into the trend towards town
centre outlets offering a range of essential grocery items. The
company will focus on Germany, Greece, Romania and the Czech
Republic, where it already has a foothold.
After a torrid year in the US, where its Food Lion unit in particular has suffered from the downturn in consumer spending, Belgian retail group Delhaize has decided to focus its efforts on markets closer to home.
The company yesterday announced plans to roll out its Delhaize City small store format in a number of European countries over the next few years, tapping into the growing trend towards convenience stores across the continent.
The Delhaize City shops have a floorspace of around 500 square metres and concentrate on a limited range of top-up food items - fresh foods, ready meals, etc.
Delhaize currently operates 10 City shops in Belgium, and has plans for a further four, but the first store outside its home market will open in the German city of Aachen later this month.
The company said it would also roll out the concept in Greece, Romania and the Czech Republic, countries where it already owns supermarket groups.
The move is in keeping with the growing trend towards convenience and discount stores across Europe as planning permission for larger outlets becomes harder and as consumers increasingly seek to 'top up' their shopping list with a handful of everyday items.
Delahaize in fact has been fairly slow to tap into this trend. Tesco in the UK is now one of the largest convenience store operators there as well as the leading overall food retailer, while French groups such as Carrefour and Casino have seen spectacular growth rates from their smaller store formats over the last year.
