[Analysis] Delhaize has crossed point of no return

The fact that the franchising of 128 integrated Delhaize supermarkets is now really getting underway, gives all concerned the benefit of clarity. The food retailer is pushing ahead, but will have to increase the pace to reach its goals.

Boost

When the Belgian chain announced that the first fifteen stores have been given over to franchisers, it evoked varying emotions among those involved. Relief may prevail at the headquarters, because the major franchise operation is now finally really starting. After months of fiercer-than-expected protests and massive sales losses, this is a boost for the retailer’s management. They can now show that prospective buyers will not be deterred by alleged extortionate contracts and threats from activists who promise to make the stores “unsellable”.