Decline in profits for Delhaize due to pricing strategy

In the first quarter, the group Delhaize saw its net profit (- 2.9% to 126 million Euros) and operating profit (- 9.4% to 218 million Euros) in decrease.

In Belgium, Delhaize Group has seen its profits fall by 6.2%, while sales rose 0.9% in the first quarter. Sales in southern Europe and Asia rose 4.7%, sales in the U.S. (68% of the activity) fell 0.3%.

For the group, these results are due to the pricing strategy which began several months ago. The restructuring of its U.S. store base, achieving numerous price reductions with new conditions of purchase and the saving plan of 500 million Euros by 2012 will show its benefits later in the year.
 

source : les echos, cercle finance, trends be