Belgium-based retailer Delhaize Group has struck a deal to sell US chains Sweetbay, Harveys and Reid’s to local rival Bi-Lo Holdings for US$265m.
Bi-Lo will take control of the 155 stores as well as the leases for 10 former Sweetbay locations.
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In 2012, the 165 outlets generated revenues of around $1.8bn. Delhaize will retain control of the Sweetbay distribution centre. The move comes as part of Delhaize’s efforts to improve margins at its US business, which generates almost two-thirds of the group’s revenue.
As part of this process, Delhaize has already closed over 100 US stores and withdrawn its Bloom banner from the market. The group has also shaken up its management in the country and cut its workforce to reduce its cost base. Moving forward, Delhaize seems poised to invest in driving growth at its larger Food Lion and Hannaford banners as well as expanding its discount chain Bottom Dollar Food.
