Delhaize to expand Bottom Dollar brand
Salisbury, Md. Belgium-based Delhaize Group said late Thursday that Food Lion will double the number of its Bottom Dollar discount stores and push pricing at its flagship banner closer to that of Wal-Mart in 2010. The move comes as part of what the company calls a “New Game Plan,” according to Supermarket News.
Speaking at Delhaize’s annual investor conference in Greece, Rick Anicetti, CEO of Delhaize’s Food Lion chain, said the retailer would begin a multi-year investment in pricing designed to narrow its gap with Wal-Mart, rather than position itself between conventional competitors and discounters as Food Lion has traditionally done. This investment, which would begin in the fiscal first quarter of 2010, is to be funded almost entirely by internal cost reductions, he said.
Bottom Dollar, the discount banner founded by Food Lion in 2006 and currently operating 28 stores, plans to nearly double its size in fiscal 2010 and expand to new markets, Anicetti added. Bottom Dollar currently operates stores in Maryland, Virginia and North Carolina. The expansion is part of a companywide plan to use discount banners to accelerate Delhaize’s organic store growth. Delhaize plans 250 new discount stores to open in three years between its Bottom Dollar banner in the United States and Red Market discount chain in Europe.
Target opens holiday To-Go shops
MINNEAPOLIS Target announced that it is hosting three limited-time-only Target To-Go shopping events in New York City, San Francisco and Washington, D.C.
The To-Go shops will feature 50 items, including toys, gadgets, home decor, beauty and fashion. Customers order the items by number, which come wrapped and ready for gift giving.
“This holiday, we wanted to give our urban markets a little slice of Target,” said Shawn Gensch, VP marketing, Target. “We’re always trying to reach our guests in new and interesting ways, and Target To-Go gives time-starved city dwellers a joyful, convenient and affordable holiday shopping experience.”
Target To-Go will be open to the public from Dec. 11 to Dec. 13, from 10 a.m. to 8 p.m. daily.
Collective Brands 3Q comps up, earnings down
TOPEKA, Kan. Collective Brands reported that third-quarter 2009 net earnings were $36.9 million, or 57 cents per diluted share, compared with $47.5 million, or 74 cents per diluted share, in the third quarter of 2008.
Collective Brands’ third-quarter 2009 net sales were $867 million, up 0.5% versus last year and up 2.9% versus last year on an adjusted basis. The company’s third-quarter 2009 comparable-store sales increased 3.1%.
“Our strong third quarter operating results demonstrate the success of our strategy in the midst of a difficult economy,” said Matthew Rubel, chairman, CEO and president of Collective Brands. “Sales increased, operating margins improved, and we generated substantially greater free cash flow. At Payless, we had strong children’s results that produced a successful back-to-school season, and we had a strong boot performance as well. Saucony and Sperry Top-Sider also showed continued strength. Across Collective Brands, we delivered on our customer promise with innovative and fresh product, outstanding customer service, effective marketing, and efficient merchandise flow, all of which led to strong results.”