Dive Brief:
- Delhaize reported operating profit of $240.4 million in the most recent quarter, higher than analysts' expectations, as sales grew in U.S. markets.
- The Belgian chain, which operates on seven continents, saw sales sag nearly everywhere except for the U.S., the grocer's largest market, where same-store sales rose 5.3%.
- Delhaize also announced it would sell its 66 Bottom Dollar Food stores in the northeastern U.S. to German discount grocery chain Aldi.
Dive Insight:
According to Delhaize, the good news is almost entirely the result of the positive revamp of its Food Lion chain. Some 31 of those stores have already converted to the company's new "Easy, Fresh & Affordable" strategy - an every day low price (EDLP) approach with a heavy emphasis on fresh produce.
Of course, if the Food Lion revamp is going so well, then the questions surrounding the sudden departure of that chain's president are even more puzzling.