Food Lion Targets 4 Markets for ‘Renewals’

MARK HAMSTRA

BRUSSELS — Delhaize Group here yesterday identified four markets where it plans to conduct sweeping remodeling programs next year: Wilmington, N.C.; Savannah, Ga.; Richmond, Va.; and Charlottesville, Va. The 110 stores in those markets will be remodeled with a “multi-brand approach” that could include the chain’s Bloom and Bottom Dollar banners, the company said. About 450 stores have been remodeled under the program so far, Delhaize said in a conference call discussing second-quarter results yesterday. Strong sales at Hannaford Bros. and Food Lion, among other factors, helped drive a 16% gain in U.S. operating profits for the period, to $252.2 million. Comparable-store sales in the U.S. rose 2.8%. The company said revenues in the U.S. were up 4.2% in the quarter, to $4.55 billion. Revenues for the entire company, which also includes operations in Belgium, Greece and other markets, were down 0.4% at actual exchange rates, but up 4.7% at identical rates, to about $6.6 billion. Net income was down about 12%, to about $116.2 million.

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