Back to top

Analyst Blog

Supermarket chain Food Lion, subsidiary of Delhaize America, announced significant investments in 169 stores in its home state of North Carolina. The move has created as many as 500 jobs in the region. Delhaize America is the U.S. division of  Delhaize Group (DEG - Snapshot Report).

Food Lion has injected money into its stores in Wilmington and Greenville in North Carolina as well as Columbia, Charleston and Myrtle Beach in South Carolina.

Food Lion has slashed the prices of 6,000 items including its ‘my essential’ category. It has also taken steps to enhance the quality, freshness and variety of products.

Additionally, shoppers can redeem their grocery coupons at designated centers to avail personalized offers on national and private brand products. Food Lion has introduced centers where shoppers can scan their grocery coupons to receive personalized offers for additional savings on national and private brand products in-store. 

Food Lion has also taken several steps as per customer feedback to boostits online sales. The grocer has reintroduced an interactive digital flyer by which customers can avail of discounts while shopping online. Also, it has joined a mobile app — Ibotta — which offers cash rewards for purchasing featured products.

These sales-driving endeavors are expected to increase customer traffic as well in the coming quarter. Food Lion operates more than 1,100 supermarkets in 10 states, and it has about 57,000 employees.

Of late, Delhaize Group has been working on simplifying the company's U.S. operations to enable it to better focus on its core businesses in the region. In this regard, in May, the company agreed to divest its U.S.-based Sweetbay, Harveys and Reid's supermarket stores to national supermarket chain, Bi-Lo Holdings, for $265 million in cash.

Other Stocks to Consider

Delhaize carries a Zacks Rank #3 (Hold). However, other retailers worth considering are Best Buy Inc (BBY - Analyst Report), Harris Teeter Company Inc. and Marks & Spencer (MAKSY). All these stocks carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%