Delhaize Group said Thursday that sales volumes at U.S. banners Food Lion and Hannaford increased during the fourth quarter, despite a deflationary environment.
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Total sales in the U.S. increased 2.6% to $4.3 billion in the quarter, with comparable-store sales increasing by 2.8% despite the effect of negative inflation of 0.4%. The sales growth was sparked in part by price investments and increased promotions. Performance was especially strong at Food Lion, where the company has now completed a program of repositioning stores with lower everyday prices.
For the full year, Delhaize generated U.S. revenues of $17.1 billion, an increase of 1.9% over 2012, supported by comparable-store sales growth of 2%. The company will release earnings for the quarter and fiscal year on March 13.
“In the U.S., where volume growth continued to be positive, we were especially pleased with Food Lion’s momentum,” Frans Muller, Delhaize’s president and CEO, said in a statement. “The phase repositioning, started almost 3 years ago, is meeting our expectations and we look forward to further develop Food Lion’s customer proposition this year.”
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