Delhaize Belgium Plans To Invest EUR 450 Mln In Its Stores; To Cut 2,500 Jobs

(RTTNews) - Delhaize Belgium (DEG) announced its intention to implement major changes to its organization. The company plans to accelerate the implementation of its commercial strategy through an additional investment of 450 million euros during the 2015-2017 period. To enable the additional investment, the company is planning to take different measures, which could impact the jobs of 2,500 employees of Delhaize Belgium in the coming three years. The company noted that this include the termination of the company-operated activities in 14 stores in various locations throughout Belgium.

Delhaize Belgium said it faced with a growing structural cost gap related to salary and working conditions in its company-operated stores versus key competitors. This gap currently ranges from 15% to more than 30%. Moreover, these company-operated stores have suffered from a continued difficult economic environment and increased competition, Delhaize said.