Delhaize Acquires Four More Supermarkets

Belgium-based mass grocery retailer (MGR) Delhaize's main Romanian subsidiary Mega Image has completed the acquisition of four supermarkets from domestic company Prodas Holding as it continues to expand its supermarket-geared business. Although BMI is pessimistic about the supermarket segment's near-term outlook - we expect flat industry-wide sales in 2009 as value conscious consumers continue down-trading to discounters - we see significant long-term upside. Through to 2013, we forecast supermarket sales to increase by 50% and reach US$12.1bn, which is strong evidence that despite significant multinational investment into the MGR industry, major expansion opportunities remain.

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