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 - Snapshot Report). All these stocks carry a Zacks Rank #2 (Buy).