Archive for Belgium
Say Goodbye to Southern Home, Hello Food Lion
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This past weekend my wife, children and I shopped one of the few local Bi-Lo’s in the Charlotte area. I grew up shopping at Bi-Lo. My childhood home was less than a mile from the corporate headquarters, and our local Bi-Lo was my mother’s store of choice. So with the recent announcement that the Delhaize Group, parent company of my former employer Food Lion, intended to acquire Bi-Lo, I thought I would stop in one last time before the transition. I understand that this is still pending and there are other suitors in the mix, but this is certainly the end of the Bi-Lo that I grew up with.
So it leaves a question for this blog: What will happen to their Private Brands? Southern Home is their mid-tier, national brand equivalent brand but with 214 stores in North Carolina, South Carolina, Tennessee and Georgia, I would have to believe that an existing Delhaize would replace the Bi-Lo brands with their own Private Brands. The other brands in the Bi-Lo portfolio (Top Care, Full Circle, Clear Value and Paws Premium) are part of the Topco stable of brands and will certainly be replaced by the corresponding Delhaize brand:
Southern Home = Food Lion, Bloom or Hannaford brand
Top Care = Healthy Accents
Full Circle = Nature’s Place
Clear Value = Smart Options
Paw’s Premium = Home360 Pet
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Delhaize Private Brands
2009 appears to be shaping up as the year of the food fight, grocer vs. grocer; national brands vs. retailers on pricing, as witnessed by the recent Delhaize announcement that it would remove some 600 Unilever products due to pricing concerns, and national brands vs. Private Brands. The consumer stands to gain a great deal through better prices and expanded Private Brand selection.
Both Safeway and Kroger have recently been downgraded by analysts due to the fear of an impending price war. In a report released in January by Interbrand on the “Most Valuable U.S. Retail Brands 2009” traditional grocers, including Kroger, Safeway and Supervalu, were completely ignored. Interbrand contended that the grocery sector scored low in terms of customer loyalty and brand strength because of their dependence on price based promotions and increasing turns, rather than focusing on the customer experience or product differentiation. This is difficult for most grocers to hear, but in it’s kernel of truth it has the opportunity to push grocers to become compelling brands. Instead of constantly pulling the price lever, Private Brand should be at the forefront of this push to differentiation. Grocers must commit not only to consistent quality, but also to consistent branding. The result would certainly be customer loyalty and increased profits.
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Posted by: | CommentsIt’s Christmas Eve and I probably won’t post again for a few days so I thought I would leave you with a few great Christmas commercials from some European grocers.
A Great Commercial from Waitrose
A unusual, but well done commercial from Delhaize
Very Funny from Tesco
And a fun lifestyle ad from Marks & Spencer
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