bfresh stores to add grocery items and prepared foods

bfresh, the urban fresh concept that debuted nearly a year ago, is making substantial changes. According to parent company Ahold-Delhaize (Giant, Food Lion, Hanaford, Stop & Shop, Peapod), the store plans to add hundreds of branded packaged goods - from paper towels to peanut butter - to an assortment previously dominated by fresh, natural and organic brands. Stores will also include more grab-and-go and heat-and-eat food options.

These changes are being made as Ahold continues to learn how best to meet the needs of young urban shoppers.

"Shoppers want to keep things simple," said bfresh Team Coach Patrick Blye in a recent news release. "No matter how you want to shop - like stocking up for the week, buying fresh meals every day, or stopping in for the freshest quick bite in town - bfresh has got you covered."

According to a story in Supermarket News, Philadelphia is a target for bfresh expansion.

Ahold and Delhaize approve company merger

Ahold and Delhaize shareholders approved the merger of the two companies last month, leaving approval from competition authorities in the United States and Europe as the final hurdle. Pending the necessary approvals, the deal is expected to close this summer.

In order to help facilitate the approvals, both chains are offering a combined 83 stores for sale, according to Food Trade News. The stores for sale are assumed to represent an overlap in markets where both stores exist.

According to published lists, there are four stores for sale in Pennsylvania (York, Waynesboro, and two in Chambersburg), all of which carry the Food Lion banner.

Ahold USA, headquartered in Carlisle, PA and Quincy, MA, includes Giant Food, Stop & Shop and Peapod, among others. According to the company's website, Ahold USA operates 770 supermarkets and 210 "pick-up points" in 14 states and the District of Columbia.

Delhaize America includes Food Lion and Hannaford, and operates 1,288 supermarkets in 15 states. The company's website reports that Delhaize America accounts for 66% of the overall company revenue.

Ahold and Delhaize to merge, form one of largest supermarket chains in U.S.

Ahold (Giant, Stop & Shop) and Delhaize (Food Lion, Hannaford) announced this morning that the two companies plan to merge and become Ahold Delhaize, creating one of the largest supermarket chains in the U.S. The merger would create a company with 2,000 U.S. stores (6,500 stores worldwide), $44 billion in sales and 375,000 employees.

By comparison, Kroger, the largest full-service grocery retailer in the U.S., has about 2,650 supermarkets.

The deal, which is expected to close next summer, needs to clear regulatory clearances and obtain shareholder approval.

Giant and Food Lion parent companies in merger talks

Ahold and Delhaize confirmed last month that they are in the early stages of merger talks, and analysts believe a deal could be struck this year. Ahold is the parent company for Ahold USA, which includes Giant Food, Martin's, Stop & Shop, and Peapod. The Delhaize Group includes Delhaize America, which consists of Food Lion and Hannaford. Both companies are based in Europe.

Analysts said that both companies combined produced sales of $60.5 billion last year, of which about 61% came from the U.S.

The companies discussed a merger in 2006, but an agreement was not reached.

Sales increase at Food Lion, Bottom Dollar still not profitable

Delhaize Group sales and earnings increased in the company's second quarter due in part to sales increases at Food Lion, according to a company statement issued last month. U.S. sales for Delhaize, which includes Food Lion, Hannaford and Bottom Dollar, improved 0.4% to $4.25 billion, as compared to the same period one year ago.

Margins improved from 3.7% to 3.8%, and profits in the U.S. were up by 4.9% to $162 million.

Although Bottom Dollar is still not profitable, Delhaize says the chain is making significant progress on cost and productivity initiatives and is continuing to gain new shoppers.

Delhaize considering sale of Sweetbay and Harveys

According to multiple reports today, Delhaize Group, which owns Food Lion and Bottom Dollar Food, has hired an investment bank to assist in the possible sale of its Sweetbay and Harveys brands in the U.S. Sweetbay, which is in Delhaize's Hannaford division, operates 72 stores in Florida. Harveys is in the Food Lion division and operates 73 stores, mostly in Georgia.

Delhaize reports lower losses at Bottom Dollar

Delhaize Group announced first quarter earnings earlier this week and said the company's performance in the U.S. was boosted in part by "lower losses at Bottom Dollar Food." U.S. operating profit for Delhaize increased to $197 million for the quarter, a 14.1% increase compared to the same time period a year ago. Operating margins improved to 4.2% of sales as compared to 3.7% in the first quarter of last year.

The company is in "phase four" of its repositioning effort for Food Lion, and has begun a "fresh round of price investments" at Hannaford Bros.

As for Bottom Dollar, Delhaize has not opened a new store in the past nine months, but future openings are planned for the Philadelphia and Pittsburgh markets.

Bottom Dollar parent ousts 15 execs in restructuring effort

Delhaize America CEO Roland Smith sent a memo to employees last week detailing a high-level restructuring that resulted in the ouster of 15 executives. According to reports about the memo, the company failed to realize cost-saving targets that were established last year. The move follows the appointment of new presidents at Food Lion and Hannaford last month.

In addition to Food Lion and Hannaford, Delhaize America brands include Bottom Dollar, Bloom, Sweet Bay and Harvey's.

Weis posts strong earnings, Bottom Dollar exceeding expectations

Weis Markets said yesterday that improvements in store productivity and cost controls contributed to net earnings of $20 million for its fiscal first quarter, an increase of 7.7% compared to the same period last year. In addition, sales increased 0.3% to $661.6 million, and comparable store sales improved by almost 1%.

On the other hand, despite positive results from Bottom Dollar, U.S. sales for the Delhaize Group fell 1.2% to $4.6 billion in the first quarter as compared to a year ago. Profits were down 21.7% to $173 million and comparable store sales fell 0.6%. According to the company, price investments at Food Lion and Hannaford are positioning the stores for long-term success but are coming at a cost to short-term earnings.

In their quarterly filing, Delhaize reported that Bottom Dollar continues to see strong revenue growth, and Philadelphia and Pittsburgh area stores are exceeding revenue expectations.

Bottom Dollar to open 8 more stores in New Jersey

About a month after Bottom Dollar opened 14 new stores in the Pittsburgh, PA and Youngstown, OH markets (see "related blog posts" below), the company announced yesterday that it would open eight new locations in New Jersey. The new stores will all be in the Central and Southern part of the state.

New stores opening Friday, March 2
Trenton
Cinnaminson

New store opening April 13
Bordentown

Future stores
Edgewater Park
Bellmawr
Woodbury
Mt. Holly
East Windsor

As of Friday's openings, Bottom Dollar will be operating seven stores in New Jersey, 35 in Pennsylvania and three in Ohio.

Back in December, Bottom Dollar's parent company, Delhaize Group (Food Lion, Hannaford Bros.), said it is looking to add 450 new discount grocery stores worldwide over the next five years, "hundreds" of which would be in the United States.

Related blog posts:
Delhaize to eliminate Bloom, open 7 Bottom Dollar stores this week (1/23)
Food Lion closing 126 stores, including 2 in PA (1/12)

"Hundreds" of Bottom Dollar stores in the pipeline

Bottom Dollar's parent company, Delhaize Group (Food Lion, Hannaford Bros.), said yesterday it is looking to add 450 new discount grocery stores worldwide over the next five years, "hundreds" of which would be in the U.S.

According to Company CEO Pierre Oliver Beckers, the plan for new stores represents an acceleration of previous forecasts and will help accelerate sales growth by 5% - 7% in the next three years.

According to Bottom Dollar's website, there are currently 23 stores in Pennsylvania and five stores in New Jersey, and the company has recently reported that 14 new stores are scheduled to open in the Greater Pittsburgh area next year. Bottom Dollar competes in the crowded grocery space with Save-A-Lot, Aldi, Walmart and the various dollar stores, not to mention traditional supermarkets and drug stores.

ShopRite expanding to Northern New York and Maryland

As Food Trade News declared in its annual Market Study issue, ShopRite has become the dominant grocery retailer in Northern New Jersey, the Delaware Valley and Greater Philadelphia. And as the Supermarket News reported last week, ShopRite is now competing in new markets.

In recent weeks the company opened its first store in the Albany, NY area. That's Price Chopper territory. In the 70s and 80s it was Price Chopper (where I stocked shelves) and Grand Union (where my best friend worked the register). Now it's Price Chopper and Hannaford (part of the Delhaize Group, which includes Food Lion and Bottom Dollar). The word on the street is that ShopRite is looking to open several stores in the area, including Clifton Park, NY, which is my hometown and home to two Price Choppers, a Walmart Supercenter, a Hannaford and an Aldi. My how the town has grown.

ShopRite is also expanding into Maryland, where it will compete with Giant and Safeway, among others. The bottom line is that it won't be easy for ShopRite in Northern New York or Maryland, but the members of the Wakefern Cooperative are strong operators with a proven recipe for success, and ultimately plenty of staying power. In the end it will be good for consumers, as ShopRite will force its competitors to remain on their game.