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Private Label, Pricing Drive Delhaize in Q3

An emphasis on pricing and private-label goods boosted quarterly sales momentum despite reduced volumes at Food Lion and Hannaford Bros. stores, Delhaize Group, based here, said in a review of third-quarter financial results Thursday.

BRUSSELS — An emphasis on pricing and private-label goods boosted quarterly sales momentum despite reduced volumes at Food Lion and Hannaford Bros. stores, Delhaize Group, based here, said in a review of third-quarter financial results Thursday. “We believe the rollout of the common private-label assortment in the U.S. could not have been timed better,” Pierre Oliver-Beckers, chief executive officer, said in a conference call. “As private-label sales continue to increase, so does the consumer’s loyalty to our brands and the positive impact to our gross margins.”

Delhaize’s U.S. sales grew by 3.8% to $4.8 billion for the quarter, with comparable-store sales up by 2.5% vs. a 4.6% comp-gain in last year’s third quarter. Sales growth was supported by 22 new stores and by product price inflation, officials said. Greater private-label penetration helped operating profit in the U.S. improve by 3.5% in the quarter. Delhaize overall reported $134.8 million in net profits, a 3.9% increase at identical exchange rates, on revenues of $6.1 billion.

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