Delhaize sells three American chains, gets less than expected

Delhaize sells three American chains, gets less than expected

Delhaize has finalized the sale of its three smaller American chains (Sweetbay, Harveys, Reid's) and will get 246 million dollars (181 million euro) from Bi-Lo, slightly lower than agreed to.

Sold chains worth 1.3 billion euro

The deal had been announced in May 2013, one of the last major decisions from former CEO Pierre-Olivier Beckers and American CEO Roland Smith.

 

Judging by American standards, the three chains were too small, even though they represented a joint turnover of 1.8 billion dollars (1.3 billion euro), through 72 Sweetbay stores, 72 Harveys stores and 11 Reid's stores.

 

Purchase price lower than expected

Delhaize aims to focus its American efforts on Food Lion, Hannaford and its discount chain Bottom Dollar. According to the group, with a 2013 total turnover of 20.9 billion euro, Bottom Dollar has cut its losses last year.

 

The total sum for the three American chains is slightly lower than originally anticipated as Delhaize spoke of a 265 million dollar (195 million euro) price, but it finally received 246 million dollars.

 

Logistics center sold as well

In a separate sale, Delhaize sold off its Plant City (Florida) logistics center to C&S Wholesale Grocers for 28 million dollars (21 million euro). Only last year, it had stated it would hang onto Sweetbay's logistics center.

Questions or comments? Please feel free to contact the editors


Fewer customers and lower turnover for H&M

15/12/2017

Swedish H&M Group suffered a 4 % turnover drop in the fourth quarter because its stores welcomed fewer customers.

Hunkemöller is European Retailer of the Year

14/12/2017

Dutch lingerie chain Hunkemöller has been elected “Retail of the Year Europe 2017-2018”. Q&A, which also elects a “Retailer of the Year” in Belgium and the Netherlands, organized the election for the third time.

Amancio Ortega leaves Inditex with strong quarterly growth

14/12/2017

Over the first three quarters of fiscal year 2017, Inditex’ turnover grew 10 % to 17.96 billion euro. The Spanish fashion company published the results as its boss, Amancio Ortega, stepped down.

Glimmer of hope for fashion retail in 2018

08/12/2017

McKinsey wrote in its The State of Fashion 2018 study that the industry has survived the harshest, even though nothing will ever be as it used to be. Growth will come from southern and eastern regions; fast-fashion will become even faster and the large companies will become even larger.

Gucci investigated for tax avoidance

04/12/2017

The Italian police raided Gucci’s offices in Milan and Florence, looking for evidence of tax avoidance. The fashion label admitted there was an investigation and that it is fully cooperating.

Quiksilver wants to acquire Billabong

01/12/2017

Surfing brand Quiksilver tabled a 150 million dollar (125 million euro) bid for its competitor, Billabong. It may be the latter’s only way out, with compounding losses in the past few years.

Back to top