News

Delhaize to sell Bottom Dollar stores to Aldi

BY Dan Berthiaume

BRUSSELS, Belgium — Delhaize Group has signed an agreement to sell its Bottom Dollar Food stores to deep-discount grocer Aldi Inc. for approximately $15 million, including the assumption of associated lease liabilities. The transaction, which involves 66 Bottom Dollar stores in the greater Philadelphia and Pittsburgh markets, is expected to result in an asset impairment and other charges for Delhaize Group of approximately $180 million.
 
All stores are expected to remain open under the Bottom Dollar banner until year-end. After that time, Bottom Dollar will close the stores and retire the banner's operations. The transaction is subject to customary closing conditions and is expected to be completed by the end of first-quarter 2015.
 
Delhaize officials said the company will no longer be involved in the discount food retail business in the United States. Going forward, the company will focus on its “core’ operations in the traditional supermarket segment.
 
"The divestiture of Bottom Dollar Food further simplifies our business, increases debt capacity and creates shareholder value,” said Frans Muller, president and CEO of Delhaize Group. “Today's announcement is consistent with our strategy, announced in March, of investing in and focusing on our core markets."
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Fred’s Super Dollar reports 1.3% lift in October sales overall, 1.4% decline in same-store sales

BY Michael Johnsen

MEMPHIS, Tenn. — Fred's Super Dollar on Thursday reported sales of $145.3 million for the four weeks ended Nov. 1, up 1.3% as compared with the same year-ago period. Comparable store sales for the month declined 1.4% versus an increase of 0.8% in the same period last year.
 
"Sales for October were below expectations," said Jerry Shore, Fred's CEO. "While general merchandise sales and traffic were adversely affected by the warmer weather, the primary driver for the sales miss was related to changes made in our layaway program this year and the lack of incremental sales from layaway customer visits during this October as traffic declined late in the month," he said. "Last year, our program was promoted at only $1 down and no layaway fee, which generated a significant increase in layaway sales, but a majority of the merchandise ultimately was never picked up by the customer, causing sales and inventory issues during the fourth quarter."
 
Fred's anticipates a rebound in layaway activity during November and December that should benefit fourth quarter sales this year, Shore said. "Offsetting these adverse developments to some extent was the ongoing strong performance of our pharmacy department, which continued to post higher comparable scripts and sales."
 
Shore noted that sales, inventory clean up and clearance margin pressures experienced in earlier months have been the primary causes of the company's recent losses. These pressures have clearly continued during the third quarter. Consequently, Fred's now expects a net loss for the quarter of $0.12 to $0.16, excluding any special charges related to store closings. The company's new prime pharmacy vendor contract, now fully in effect, is expected to have a significant positive impact on gross margin in the fourth quarter and beyond.
 
"We enter the fourth quarter with new programs and initiatives to capitalize on the convenience and pharmacy advantages we offer our customers," Shore continued. "We know that the upcoming holiday season will be very competitive and internet shopping will continue to make gains, but the fourth quarter programs we have in place will meet the convenience dimension of our customers'shopping needs and drive more trips to our stores," he said. "Looking ahead to 2015, we are confident that the continued growth in pharmacy and the 'need it now' front store layout will provide a strategic foundation for future growth and profitability."
 
Total sales for the third quarter of 2014 were $476.1 million, up 3.4%. Comparable store sales for the quarter increased 0.3% on top of an increase of 1.4% in the third quarter of 2013.
 
Fred's total sales for the nine months of 2014 increased 1.5% to $1.5 billion. On a comparable store basis, year-to-date sales decreased 0.5% compared with an increase of 1.1% for the year-earlier period.
 
During the month, Fred's opened three Xpress locations and moved one Xpress into an existing full-service store, for a net increase of two locations.
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Postal Service enhances delivery to alleviate holiday hassle

BY Ryan Chavis

WASHINGTON — In an effort to handle the expected double-digit package volume growth this holiday season, the Postal Service on Thursday announced that it would be delivering packages seven days a week in major cities and high-volume areas beginning Nov. 17 through Christmas Day.

"The Postal Service will be out making deliveries every single day during the holiday season, including Christmas Day," said Postmaster General Patrick Donahoe. "During the holidays, no carrier makes more deliveries to more places than the Postal Service, and this year, we're raising the bar with enhanced tracking and Sunday delivery."
 
The demand for package service has increased as online retailers ship more products out to consumers. The Postal Service expects 450 million to 470 million packages this year, a nearly 12% growth over the same time last year. The Postal Service lowered some of its prices for businesses and frequent shippers. Additionally, new priority mail pricing provides more affordable shipping optins, along with better tracking for its business customers. 
 
"Football has its season. But the holidays? That's our season," Donahoe said. "That's crunch time for us, and year after year, we step up our game. E-commerce package business continues to be a big player now more than ever, so we've enhanced our network to ensure America that we'll deliver their cards, gifts and letters in time for the holidays."
 
The Postal Service will launch an advertising campaign today with an eye on bringing in new consumer and business customers. It also noted that consumers can bypass potential holiday hassles by going to USPS.com to take advantage of online services. A full list of shipping deadlines may be accessed at USPS.com/HolidayNews.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?