Strategies & Solutions

Feeling the heat from a competitive Belgian retail sector, Belgiums third largest food retailer, Delhaize, has announced plans to invest 100 million euros in its Belgian operations while cutting prices.

A Wall Street forecast that Kmart Corp. might file Chapter 11 bankruptcy didn’t seem to frighten investors as they watched their stock climbed 15.1 percent.

Supervalu Inc. third quarter profits were up, but sales fell as anticipated. That drop was hurt by both the discontinuation of the supply services contract with Kmart, which had chosen to work exclusively with Supervalu competitor Fleming Cos Inc.

After having difficulties entering the market in Germany, Wal- Mart Stores Inc. continues to persevere. Wal-Mart, the worlds largest retailer, first ventured outside U.S. borders in 1991, opening a store in Mexico.

Its a fight to the finish for food sales, as far as Wal-Mart Stores, the worlds largest retailer, is concerned. The mega- retailer said Dec. 14 that it is ready to do battle with Kroger and other supermarket chains even at the cost of lower profit margins. Kroger is the largest U.S.

The good news is that Kroger Co., the largest U.S. grocer, has announced third quarter earnings have risen. The bad news is that the The Cincinnati-based company, which operates more than 2,300 supermarkets, will be cutting 1,500 jobs as part of a a cost-cutting plan.

Albertson Inc. has accepted an offer from Maxi Drug Inc. that would say goodbye to 80 of its Osco Drug stores in Maine and New Hampshire for the tune of $240 million. Subject to government review, the deal is schedule to be closed sometime in January 2002.

Tyco International has purchased Paragon Trade Brands Inc., the largest manufacturer of store brand disposable diapers and training pants in the United States and Canada, for $565 million, while assuming the Georgia-based manufacturers $85 million debt.

You wont find anybody quoting The Rain Man at Fleming Companies, Lewisville, Texas. Shares of the grocery wholesaler rose more than seven percent Nov. 27 after discount retailer Kmart said its contract with the company would be expanded.

Net earnings are expected to jump 30% at Dutch supermarket giant Royal Ahold NV, the companys chief executive Cees van der Hoeven said Nov. 27. Thats exclusive of goodwill, currency impact and exceptional charges. Per share earnings will be up only 15% because Ahold floated more shares.

Despite a sharp drop in third quarter net profit, Israeli food manufacturer Elite Industries said it expected foreign investments to begin to pay off with strong growth seen in 2002.

Wal-Mart Stores, worlds largest retailer, has decided to cut out the middleman when it comes to sourcing products in China: it¹s setting up a buying office in Shenzhen in southern China, shifting billions of dollars of business away from a longtime agent in Hong Kong, according to a well-p