business news in context, analysis with attitude

Pierre-Olivier Beckers, CEO of Delhaize, has told the Belgian media that the company is looking for “substantial” cost savings of as much as $75 million through a series of cost-cutting measures it will take at its Food Lion division in the US.

While Food Lion is a low-cost operator, Beckers said that “there is still room to cut costs” at the retailer.
KC's View:
Food Lion has an interesting problem, in that while it always has been a price-driven chain, competition from companies like Wal-Mart threaten both that image and its hold on customers.

Seems to us that two things probably are necessary, one being cutting costs wherever possible so that it can remain competitive on price. But the other may be to re-examine the nature of value and convenience as perceived by the public, and cater to that in new and different ways. The company reportedly is considering opening smaller stores in some locations, which is certainly a first step.

We have a lot of respect for the company and its leadership, especially CEO Beckers…so this will be a battle worth watching.