Good franchise in important regional markets. Geographic diversification on both sides of the Atlantic. Strong track record of above-average operating margins. Highly competitive industry. Small scale relative to other global players. The ratings on Belgian food retailer Delhaize Group S.A. (Delhaize) reflect its activity in the highly competitive U.S. supermarket industry (68% of 2010 sales); the diversified formats under which it operates in Belgium (23% of sales); higher operating margins, but smaller scale relative to major operators; and adequate debt-protection measures. Delhaize has solid regional positions, notably through U.S.-based Food Lion LLC (Food Lion, Bloom, Bottom Dollar Food, and Harveys banners, accounting for 48% of the store base), which enjoys leading positions in southeastern and mid-Atlantic markets and has a...
Companies mentioned in this report are:
- Delhaize Group S.A.
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