BRUSSELS (Thomson Financial) - Michel Eeckhout, the chief executive of the Belgian operations of supermarket group Delhaize SA, told investors that the company can learn in its home market from innovations at its US operations, with a focus on value creation and minimisation of costs.
Eeckhout was speaking to investors at the group's annual investors day, in which he outlined Delhaize's strategy for the future.
He outlined the group's Excel 2008-2010 project of cost-saving and increased efficiency measures, saying that the key element of the strategy was to increase focus on customer service.
'We need to convince the Belgian customer that Delhaize offers the best quality at the best prices,' Eeckhout said, telling investors that the group needs to combat its high-price image.
'To support continued sales growth, we must continue to innovate in products,' he said, reconfirming his commitments made at a press conference last month to increase focus on convenience products and variety.
The Belgian chief said the group's home market stores is to benefit from innovations made in US units Food Lion, Hanneford and Sweetbay, such as computer assisted ordering, self-scan and is looking into launching in Belgium its 'guiding stars' system of food labelling according to nutritional value, which Food Lion CEO Rick Anicetti and Hannaford CEO Ron Hodge had described as 'extremely successful' in the US earlier in the investor day.
Eeckhout added that the Belgian operations will be able to make over 10 mln eur of efficiency savings, as processes are simplified and inefficient working practices are tackled, partly in coordination with US best practice. phil.mccomish@thomson.com pam/lam COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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