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HARVEYS' NEAR-TERM OPPORTUNITY IS BACK-ROOM ISSUES

NASHVILLE, Ga. -- The newest banner of Delhaize America is also its smallest.s in primarily rural areas of central and south Georgia and in the Tallahassee, Fla., area. Benny Ensley, Harveys' chief operating officer, now reports to Glenn Dixon, Food Lion's senior vice president of corporate development, who will oversee the Harveys chain. "We are interested in Harveys because of their successful perception

NASHVILLE, Ga. -- The newest banner of Delhaize America is also its smallest.

s in primarily rural areas of central and south Georgia and in the Tallahassee, Fla., area. Benny Ensley, Harveys' chief operating officer, now reports to Glenn Dixon, Food Lion's senior vice president of corporate development, who will oversee the Harveys chain. "We are interested in Harveys because of their successful perception in rural areas of south Georgia and northern Florida," said Pierre-Olivier Beckers, president and chief executive officer of Delhaize Group. Harveys is contiguous to -- but not overlapping with -- the regions served by Food Lion and Kash n' Karry.

"We may change a few Food Lion stores to Harveys in small towns," Beckers said. Delhaize America's main priority will be to improve the profitability of Harveys while leaving in place its go-to-market strategy.

"For the moment, we want to work on back-room issues, buying and other things that will improve profitability thanks to Harveys being part of a larger group," Beckers said. Harveys is known for a strong market penetration in categories including meat, he added.

HARVEYS FACTS

Headquarters: Nashville, Ga.

Number of stores: 43

Top executive: Benny Ensley, chief operating officer Founding year: 1950

Acquisition by Delhaize Group: 2003

Operating area: Georgia, Florida