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Strategy   

Delhaize Group has leading positions in food retailing in key markets. The Group’s position was established through strong local companies going to market with a variety of food store formats. The local companies benefit from and contribute to the Group’s strength, expertise and successful practices. Delhaize Group is committed to offering a locally differentiated shopping experience to its customers, delivering high value and maintaining high social, environmental and ethical standards.
 
This strategy consists of the following building blocks:
  • pursuing concept leadership;
  • pursuing executional excellence;
  • operating as a learning company;
  • providing a more attractive workplace; and
  • acting as a responsible corporate citizen.
1. Pursuing Concept Leadership
For each of its operating companies, Delhaize Group seeks to establish a differentiated market position with a unique combination of strengths through the development of leading concepts based on its expertise in food retailing. Delhaize Group will continue to improve the effectiveness of its existing operations in order to increase sales on a sustainable basis and support its operating margins.
 
Delhaize Group uses targeted consumer research with all of its operating companies to anticipate the needs of its customers and to provide them with a strong shopping experience. To maintain high levels of service and support, Delhaize Group focuses on innovative human resources practices, including training, job rotation, career planning and performance-related benefits.
 
Delhaize Group seeks to deliver profitable top-line growth by continually strengthening its existing activities and fostering store network growth. The store network is expanded both organically (new store openings and store remodelings and expansions) and through selective acquisitions that enable Delhaize Group to reinforce its market positions in existing or contiguous markets. Delhaize Group actively manages its store portfolio to maintain a balance of current profitability and future growth potential.
 
2. Pursuing Executional Excellence
Leading concepts are only sustainable when they are supported by executional excellence. Retail operations demand a daily commitment to deliver timely and consistently on projects and targets. Executional excellence also requires the development of the necessary tools and systems and identification of the managers and associates accountable for each element.
 
Delhaize Group is committed to being among the best operators in the industry by maintaining high standards for its core assets, through regular remodelings of its stores and continued investments in supporting infrastructure. Delhaize Group intends to use the high brand recognition by its customers and the strong market shares of its most significant local operations to optimize procurement, marketing, logistics and human resources.
 
The use of state-of-the-art technologies is a key element in maintaining executional excellence. Delhaize Group focuses on implementing innovative technologies for consumers and supply chain management. This allows it to anticipate and respond to the needs of its customers, increase sales, diminish costs and support margins.
 
3. Operating as a Learning Company
Delhaize Group believes that growth opportunities in an international group lie in identifying and distributing best practices and encouraging learning through the sharing of ideas and new developments. For Delhaize Group, becoming a learning company is a strategic process through which the knowledge and the experiences of the companies and associates throughout the organization are exchanged in a systematic way to maximize the potential of each operating company and the Group as a whole.
 
The Delhaize Group structure allows its operating companies to develop a local go-to-market strategy to drive customer loyalty and sales. Where opportune, Delhaize Group provides its operating companies with coordinated support and focuses on the optimal allocation of resources to the priorities of its companies. This allows Delhaize Group to maximize synergies and the exchange of best practices among the operating companies of the Group.
 
4. Providing a More Attractive Workplace
Delhaize Group believes that attracting and retaining skilled and motivated associates is key to its success. Therefore, Delhaize Group and its operating companies want to create an attractive professional environment. They offer a competitive compensation package, based on local standards. Associates are offered opportunities for personal development, in their current function and throughout their career, through training, talent planning and internal promotions. Several operating companies run associate recognition programs, based on career length and outstanding performance.
 
In their recruiting and internal promotion practices, Delhaize Group and its operating companies put a high value on diversity. In order to make associates feel part of the Group and give them the broader picture of the Company, they are continuously informed of the Company’s progress, strategy and initiatives through a wide array of tools: face-to-face and group meetings, electronic and printed newsletters, intranets and billboards.
 
5. Acting as a Responsible Corporate Citizen
Delhaize Group acts as a responsible citizen towards the environment and the community within its local markets of operation.
 
As a retailer, Delhaize Group considers energy and waste to be its key environmental impact areas. The Group’s operating companies take an innovative approach towards energy. They also focus on waste avoidance, collection and recycling. The operating companies of the Group support the communities in which they operate through a wide range of charitable initiatives. These are mainly focused on poverty reduction, healthcare and education.
 
Delhaize Group operates at a high standard of corporate governance and ethical business practices. The Group also continues to reinforce its efforts for transparent communication with its shareholders.
 

Some of the statements on this website and other written and oral statements made from time to time by Delhaize Group and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements include, but are not limited to, statements about strategic options, future strategies and the anticipated benefits of these strategies. These statements are based on Delhaize Group's current expectations. Delhaize Group's actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in Delhaize Group's Annual Report on Form 20-F for the year ended December 31, 2005 and other periodic filings made by Delhaize Group with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained on this website, or to make corrections to reflect future events or developments.

 
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