Delhaize wants to cut Bottom Dollar Food loose

Delhaize wants to cut Bottom Dollar Food loose

According to a specialized American site, Delhaize has asked business bank Wells Fargo to sell 66 Bottom Dollar Food store, its discount subsidiary. Analysts believe Aldi and Supervalu might be possible buyers.

66 stores for sale

According to Food World/Food Trade News, Delhaize America plans to sell 66 Bottom Dollar Food stores in Pennsylvania, southern New Jersey and north-east Ohio. The usually well-informed website also heard that business bank Wells Fargo has given interested parties all the necessary information. Bids had to be lodged by 13 August.

 

A Delhaize spokesperson remained out in the open when asked about the situation: "Our company does not comment on rumours and speculation about possible purchases or sales."

 

Analysts believe German discounter Aldi and American Supervalu would be interested. Delhaize America's current CEO, Kevin Holt, had worked for Supervalu for 20 years. The website believes Wakefern Food Corp (PriceRite, Fresh Grocer), Giant Eagle (Market District, Good Cents Grocery+More) and even Ahold USA would benefit from a possible purchase as most stores are in (sub)urban areas.

 

Eventful history

Bottom Dollar Food was founded in 2004, following a huge reshuffle of Delhaize's American activities back when Rick Anicetti was still in control. He decided to upgrade Food Lion and to close off the bottom of the market with a discounter (Bottom Dollar) and to transform 60 stores into a luxury chain (Bloom).

 

The entire plan could hardly be called a success: Rick Anicetti left in 2010 and Delhaize restructured once again in 2012. 127 Food Lion stores were closed, Bloom was shuttered, 6 Bottom Food stores were shut down and another 22 were transformed into Food Lion. Only Bottom Food Dollar stores in Pennsylvania and New Jersey remained.

 

It seemed a relaunch would have been possible: the discounter opened new stores in January 2013 in western Pennsylvania and north-east Ohio, but Delhaize now wants to get rid of the remaining Bottom Dollar Food stores. The possible sale is not a huge surprise: Frans Muller, Delhaize Group CEO, had previously said that the American discount chain was no longer a core activity for Delhaize.

Questions or comments? Please feel free to contact the editors


Arket Brussels opens: discover H&M's latest concept

14/09/2017

On Friday 15 September, H&M Group’s new store formula opens its doors on the Guldenvlieslaan in Brussels. The press got a sneak preview and discovered a surprising mixture of fashion, interior design and food. 

Nordstrom opens store without storage

13/09/2017

American fashion chain Nordstrom is to trial a new store formula in Los Angeles next month, in which customers will only be able to get advice and try out clothing. Purchases can be picked up at the store at a later date.

Primark benefits from weaker British economy

12/09/2017

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Participatiemaatschappij Vlaanderen invests in FNG

11/09/2017

Government investment fund Participatiemaatschappij Vlaanderen (PMV) will invest 15 million euro in fashion group FNG in return for 5 % of its shares. The money will go towards international expansion.

Gap Inc will focus on Old Navy and Athleta

08/09/2017

American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.

Global Fashion Group cuts losses

08/09/2017

Global Fashion Group, the fashion group founded by investment group Kinnevik and Rocket Internet, managed to lower its losses even more in the second quarter. On top of that, turnover grew more than 25 %.

Back to top