2021 Food Lion ROY

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The Shelby Report of the Southeast 2021 Retailer of the Year

Committed to serving communities

Food Lion’s history dates to 1957 in Salisbury, North Carolina, and continues to follow its heritage of low prices and convenient locations. Today, the company operates more than 1,100 stores in the Southeast and Mid-Atlantic regions.

Food Lion stands by its “Count on me” culture, a philosophy on how it helps deliver affordable groceries to families. However, this also speaks to the grocer’s efforts in caring for its employees.

“Cashiers make a difference. Folks who clean our stores make an incredible difference. Our data scientists make an incredible difference. So, it doesn’t matter where you are, every role is important,” said President Meg Ham. “And we’re counting on each other, to deliver our part and to know what we do, like literally, to be good at what we do. And we count on each other, to deliver our part, to know what to do, to make it easy and to do it all with care.”

Vital to the brand’s identity as well is ensuring that no one should have to choose between dinner and rent or gas and groceries. That’s where Food Lion Feeds, the company’s philanthropic giving platform, comes in. The goal was to donate 500 million meals by 2020. And it achieved that mark 18 months early, which led to another goal of donating a billion more meals by 2025.

This company of more than 82,000 associates is Shelby Publishing’s 2021 Southeast Retailer of The Year. In the special section that follows, you’ll learn about the grocer’s community involvement, corporate culture, sustainability initiatives and what it is doing to continue to meet the expectations of every neighbor.

2021

SOUTHEAST RETAILER OF THE YEAR

2021 Southeast Retailer of the Year

President: ‘Our people make the difference’

They’re counted on to understand, meet needs of every customer

The culture at Salisbury, N.C.-based Food Lion can be defined by the threeword motto: “Count on me.” It’s more than a promise, it’s a philosophy that sums up how the company helps families bring home affordable groceries. While ensuring reliability to customers, this mantra also speaks to how the grocer cares for employees.

Greg Finchum, EVP of retail operations, recalls the story of a young man working at a Food Lion store in South Carolina. He showed up to his first day in a pair of tattered tennis shoes and gray sweatpants.

“I’ve been trying to help my parents pay the bills. I’ve got $3 to my name,” he told the manager.

He’d have to wait until he got the paycheck to buy acceptable clothes.

“Our store manager took that young man next door, bought him some clothes with the money out of his pocket so the young man could come to work. That’s ‘Count on Me,’ that’s Food Lion,” Finchum said.

Whether it’s that, or a cashier helping a customer pay for groceries because she’s run out of funds on her EBT and debit cards, Finchum said these type of stories happen regularly.

And they are among the many reasons the company, which has more than 1,100 stores in 10 Southeastern and Mid-Atlantic states and employs more than 82,000 associates, is The Shelby Report of the Southeast’s Retailer of the Year.

‘BEST WAY TO SERVE A CUSTOMER IS TO UNDERSTAND HER’

The “Count on me” culture makes it possible for Food Lion to meet the needs of its customers, and Food Lion continues to deepen its connection to its customers to better understand them.

“The best way to serve a customer is to understand her,” said Deborah Sabo, SVP of marketing. “And it’s not just demographically, but to understand her lifestyle, attitudes and beliefs – what does she care about, what is she passionate about and what motivates her.

“That way we can better serve her to meet her needs through personalized offers, relevant content to help her nourish her family to set them up for success.”

Food Lion President Meg Ham said the company must continue to transform to meet her expectations.

“Wherever, however, whenever she wants to

engage with us, we’re there with armfuls of groceries, whether that be online, digitally, through e-commerce channels that we offer, or in person,” Ham said. “We’re there to meet her and make no mistake about it.

“We’re a people organization, we’re a service organization, and our people matter. Our people make the difference, period.”

In Food Lion’s eyes, every employee makes an impact and solidifies the “Count on Me” culture.

“Cashiers make a difference. Folks who clean our stores make an incredible difference,” Ham said.

“So it doesn’t matter where you are, every role is important. And we’re counting on each other, to deliver our part and to know what we do, literally, to be good at what we do...and we count on each other to do that.

“And that is, I believe, a major component of what has made us successful and what will continue to enable us to meet her where she is.”

HIRING EVENTS BECOME HABIT

Food Lion is continuously pushing to expand its associate base as well. While the pandemic has resulted in labor challenges, it also has presented the opportunity

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Greg Finchum Meg Ham Deborah Sabo

2021 Southeast Retailer of the Year

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to make new habits out of hiring events.

Each of Food Lion’s more than 1,100 stores held open interviews three different times this year. Applicants could walk into their nearest Food Lion and meet with a member of the store leadership team to discuss available opportunities. The events resulted in the hiring of tens of thousands of associates.

“We’re going to have habits now of doing massive interview days because we know that works really well,” said Linda Johnson, SVP, human resources and communications.

DIVERSITY, EQUITY & INCLUSION

From the beginning, Linda Johnson has felt like she belongs at Food Lion, further evidence of the regional grocer’s culture of belonging.

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“The organization was very deliberate about making sure I felt like I belong here from day one,” she said “…My responsibility and my accountability is to make sure that every single associate – all 82,000 of them – feel like they belong in our organization, no matter what they bring, where they come from, where they grow up, what their skin color happens to be. We all belong here.”

Food Lion continues to accrue the accolades for its efforts.

Beneficiaries

Multiple chapters of some of the following organizations are supported by funding from Food Lion:

➨ 100 Black Men of America

➨ Carolinas-Virginia Minority Supplier Development Council

➨ International Civil Rights Center & Museum

➨ NAACP

➨ NC Institute of Minority Economic Development

➨ The Harvey B. Gantt Center for African-American Arts + Culture

➨ Urban League

One example of this is that for the fifth consecutive year, it has been honored as a Best-of-the-Best company in America committed to diversity and inclusion across all communities by the National LGBT Chamber of Commerce and the National Business Inclusion Consortium.

To be considered for the recognition, companies must provide a report of diversity and inclusion policies and achievements and complete a detailed survey of statistics.

In 2020, Food Lion had selected several longstanding community partners to receive additional funding of $500,000 to support their work to address racial equality and justice.

With this funding, community partners undertook initiatives such as providing scholarships and internships for Black students, education and social engagement in the Black community, Census participation and voter registration efforts.

The funds also went to: development of diverse suppliers; education for children on civil rights; police community relations; and virtual town halls and community engagement series.

These funds augment the more than $1 million annually that Food Lion directs to community partnerships supporting racial equality.

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Goal of being a good neighbor burns bright Sustainability, fighting hunger among priorities

Two things are personal to Food Lion: One is its longstanding relationship with food bank partners, and the other is caring for its neighbors in the communities it serves.

For years, the Salisbury, N.C.-based company has served hundreds of towns and cities across its service area with the goal of being a good neighbor.

Food Lion Feeds, the company’s philanthropic giving platform, started in 2014 with the notion that no one should have to choose between dinner and rent or gas and groceries. It has already surpassed expectations with one of its main initiatives.

The goal was to donate 500 million meals by 2020. And the company achieved that goal 18 months early and has set another goal of donating a billion more

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meals by 2025.

“Something that’s very near and dear to our hearts is Food Lion Feeds,” said Meg Ham, president. “And we really do believe that no one should have to choose between dinner and rent, or gas and groceries…our goal is to nourish families and that is at the core of who we are as a brand.”

And in September 2021, Food Lion Feeds donated 5 million meals, the equivalent of $500,000, to 11 Feeding America partner food banks throughout its 10-state footprint. The donations of gift cards, announced during Feeding America’s Hunger Action Month, will help these food banks meet unprecedented demand

due to the ongoing COVID19 pandemic.

Feeding America estimates that due to pandemic effects, more than 42 million people may experience food insecurity, including a potential 13 million children (up from 10 million prior to the pandemic).

Additionally, in August 2021, the Food Lion Feeds

Charitable Foundation distributed nearly $400,000 in grants to 143 nonprofits across its footprint. The grants support the organizations’ efforts to fight food insecurity and provide nutritional education to neighbors.

When the COVID-19 pandemic began to impact communities in early 2020, Food Lion Feeds donated 9.5 million meals to Feeding America partner food banks through the Faces of Hope campaign.

This widespread effort benefited local communities across Food Lion’s 10-state service area and assisted 30 Feeding America partner food banks.

This was part of a $3.1 million donation earmarked to support those in need. It included funding medical research at UNC Health, providing the equivalent of 10 million meals and pumping $1 million into the Lion’s Pride Foundation, its associate emergency care fund to support associates and their families.

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Ralph Ketner and Meg Ham

2021 Southeast Retailer of the Year

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SUSTAINABILITY

Food Lion’s service to its community also is amplified by its various sustainability initiatives and goals.

For the 20th consecutive year, Food Lion has received the 2021 Energy Star Partner of the Year Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy. It is the only company in the U.S. to achieve this distinction.

Furthermore, the company has received a national honor for its work to reduce refrigerant emissions. The Superior Goal Achievement, from the EPA’s GreenChill Program, recognizes Food Lion for its efforts to reduce refrigerant emissions which impact the ozone layer and climate change.

“For me, it’s far less around the accolades and far more around the intention that all of this work has,” Ham said. “And it’s around being a better neighbor, and being a good neighbor, and being part of our towns and cities and a good citizen of this world. Quite frankly, that’s important to me as a human and me as a leader. And it’s also incredibly important to many across our associate base.”

When considering other sustainability goals, Geoff Waldau, EVP of merchandising, believes they’ve made some “pretty bold commitments” around packaging.

“Our commitment is that 100 percent of our private brand plastic packaging will be recyclable, reusable or compostable,” he said. “Obviously, that doesn’t happen automatically. There’s a lot of work in the background to make sure that we can deliver on those commitments. But certainly, packaging and specifically within packaging – plastics is something that we’ve got a lot of passion to make a difference in.”

Customers can see these sustainability initiatives taking place every day in various departments.

At a glance

Here’s a look at some of the other sustainability commitments Food Lion has made:

➨ Greater transparency: By 2025, Food Lion, in partnership with its parent company, Ahold Delhaize USA, will empower customers and make it easier to see how their products were grown or produced and where they come from. Additionally, Food Lion will be 100 percent sustainably certified in its palm oil, pulp and paper products and packaging, and make key advances in animal welfare and human rights. By 2025, the retailer also aims to offer a 100 percent cagefree shell egg assortment.

➨ Eliminating food waste: Food Lion is committed to reducing food waste by 50 percent by 2030. One way this will be achieved is by donating near-date food to local feeding agencies to feed food-insecure neighbors.

➨ Climate action: Food Lion is committed to reducing carbon emissions by 50 percent from its own operations by 2030, in partnership with ADUSA, while working with suppliers to reduce emissions from the supply chain by 15 percent.

Food Lion has been working for several years with the Gulf of Maine Research Institute, which helps it vet all seafood items and make sure they’re sustainably sourced. And in 2020, the grocer joined the Ocean Disclosure Project. Customers can go on the ocean disclosure website and see and understand where the seafood they’re buying is coming from, and how it’s sustainably sourced.

➨ Healthier choices: Food Lion aims to have more than 48 percent of private brand food sales come from healthy sales by 2025. In support of this commitment, Food Lion and ADUSA have announced a relationship with the Partnership for a Healthier America through which it will increase access to healthier food options for consumers and publicly disclose the percentage of sales from healthier options.

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2021 Southeast Retailer of the Year

Remodels offer refreshed shopping experience

Nearly 200 locations sport new look, expanded offerings

Food Lion has finished remodeling 87 stores across Georgia, Kentucky, North Carolina, South Carolina, Tennessee and Virginia in 2021, offering neighbors an expanded variety of new products and services and an easier shopping experience. This adds to the 112 stores the company remodeled in 2020.

They are among the North Carolina-based grocer’s more than 1,100 stores in 10 Southeastern and Mid-Atlantic states. Food Lion, which employs some 82,000 associates, is a company of Ahold Delhaize USA, the U.S. division of Zaandam-based Ahold Delhaize.

Greg Finchum, EVP of retail operations, sees this as a byproduct of strategic and organizational discipline to “create a replicable process that we can take from market to market that includes not just leaders and folks within the Food Lion organization, but certainly our partners inside of the larger organization as well.”

Changes that customers will experience include:

⚫ Expanded variety and assortment across all departments, including more locally sourced items, relevant to customers in each store.

⚫ More natural, gluten-free and organic items, including a larger selection of Nature’s Promise (private label) beef, pork, poultry, dairy, breakfast and

children’s foods and other items.

⚫ Enhanced variety of local craft beer and limited reserve wines.

⚫ Greater selection of easy and affordable meals for families and a wider variety of grab-and-go items and pre-sliced deli meats and cheeses, which are sliced fresh daily and available for customers to pick up without waiting in line.

⚫ Abundant offerings of fresh produce and meat backed by Food Lion’s double-your-money-back guarantee.

⚫ New signage and groupings of similar products, to make them easier and faster to find.

Finchum said all of this is part of Food Lion’s evolution to ensure it is bringing to market an omnichannel experience for customers to nourish their families and set them up for success in life.

“It’s fresh, it’s more modern, it’s up to date, it’s something that you feel good about being a part of and yet not over the top,” he added. “Not something that you’re uncomfortable going to shop in your pajama pants either. We want to remember we’re Food Lion, and we’re comfortable.”

The energy and the excitement of new stores, which kick off with uniform day, resonate across the company.

“The Sunday before we launch, you get your new uniform, jacket and name tag,” Finchum said. “It is a

day of celebration, because you have made it through the construction in your new Food Lion, you’ve made it to the starting line.”

Rhonda Mauldin, manager of one of the stores in Simpsonville, South Carolina, can see her associates get excited for the “remodel work.”

“They have new uniforms, so they look crisp and clean,” Mauldin said. “New decor makes it look crisp and clean. But the associates are excited about all the changes. And they’re excited to have new things and they’re excited to be a part of the organization that is growing and who is investing in our store and investing in our associates.”

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NEW STORES

On top of these new renovations, Food Lion also has opened 71 new stores, with a majority of them made possible through acquisition.

In June 2020, Food Lion announced it had entered into a transaction to purchase 62 BI-LO/Harveys Supermarket stores in Georgia and North and South Carolina from Southeastern Grocers. The acquired supermarkets would close for 10 days, undergo a remodel and reopen as a Food Lion.

“In a lot of these communities where these stores are operating now, that store – whether it was a BI-LO, or Harveys previously – was the only grocery store in town,” Mauldin said.

“A big part of that was understanding that our neighbors didn’t have a place to go to shop for 20, 30, 40 miles. So more of an impetus to really get that done quickly and give them a place where they can get the essentials and that Food Lion experience in the product and assortment at the low prices that they needed.”

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Piedmont, S.C., Store
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2021 Southeast Retailer of the Year

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Simpsonville, S.C., Store
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2021 Southeast Retailer of the Year

Culture is major reason so many associates stay Company encourages them to do it all with care

The daily operations at Food Lion wouldn’t be possible without the company’s store managers leading associates in the “Count on me” culture throughout stores and the community.

Reggie Beamon, store manager at the Washington, North Carolina, location and 2020 Food Lion Store Manager of the Year, has been with the Food Lion family for 28 years. Beamon recalled a conversation as a teenage employee with a bookkeeper that made him feel like he belonged.

“I just remember the way she made me feel like I was important to her and that store. And that was the moment it clicked for me,” Beamon said. “I know that interaction with that one associate that one day – I knew I wanted to be a part of this company.”

Or take Ahmed Awadalla, who came to the U.S. from Cairo, Egypt in 2007. While working three jobs and studying in college, he learned that Food Lion was the one of those three that he wanted to stick with and grow his career.

On top of that, Awadalla was learning English and his co-workers became his support system. His work paid off as he earned 2019 Food Lion Store Manager of the Year and Ahold Delhaize Store Manager of the Year awards for his work running the Charlotte Hall, Maryland, location.

“My family and friends were basically my co-workers who helped me throughout my career, because at the time, I didn’t speak any English. So I literally took notes at work; go home practice and come back the next day and ask my co-workers if I'm pronouncing things correctly,” he said.

That sense of belonging also made him want to pursue a future at the company. The same can be said for Rhonda Mauldin, manager of the store in Simpsonville, South Carolina, and 2014 Store Manager of the Year.

“The culture is a major part of why I stayed with Food Lion, and why I'm proud to work for Food Lion. We have a ‘Count on me’ culture – know what to do, make it easy, do your part and care, do it all with care,” she said.

All three managers tout the strong relationships they have with local food banks, churches and other community organizations.

“If you're in this business, and you don't make a connection with the people in your community, you're missing a big opportunity,” Beamon said.

“If I had to do it all over again, I absolutely would join Food Lion again. Because it's been one heck of a ride. You learn a lot about people, and you learn a lot about

yourself…it is a really good organization to work for.

“When I say that, they go above and beyond for their associates and they go above and beyond for their customers.”

During the COVID19 pandemic in 2020, Mauldin emphasized how much Food Lion stepped up to care for its employees and customers.

“The company really took care of their associates. I mean, they really went to bat for them. And as well, our neighbors, our customers...we didn't cut our hours at all,” Mauldin said. “Even if we were understaffed or didn't have a product, we did not cut our hours and always stayed open from 7 a.m. to 11 p.m.”

Awadalla appreciates the new life, people and opportunities that Food Lion presented him –from the leadership to the associates.

“[Food Lion] made me who I am,” Awadalla said. “And it's very humbling, reflecting on all the years at Food Lion and all the people that I met. They’re just very incredible leaders that we have in the organization and they care – just authentic – and me being able to be my authentic self, and being able to bring my own self every day and be who I am.

“I think it's very important, not only for me, but also for all my employees, and the company that allows me to be who we are. Honestly, that's my family.”

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Reggie Beamon Rhonda Mauldin Ahmed Awadalla Rhonda Mauldin

2021 Southeast Retailer of the Year

Always asking ‘How do we get better?’ Answer includes

attention to local products, diverse-owned suppliers, robust assortment

The Food Lion strategy is “Easy, Fresh and Affordable...You Can Count on Food Lion Every Day!”

Many may think of local coming to life in the produce section. But Geoff Waldau, EVP of marketing and merchandising, is proud to point out the company’s local offerings span across multiple departments.

“We really take pride in the fact that we have a nice local assortment across the store, from produce to deli to our center store, you can find local products called out,” he explained.

“You’ll see signage that identifies a lot of local businesses. You’ll see off-shelf fixtures that are different by state to highlight some of our key local items.”

Local is a big piece of the company. Waldau said the company wants to continue to put a focus on that in the coming years. For Food Lion, the local offerings are considered more at a state level.

“So if you were to go into a store in Georgia, you will see a fixture on the floor that calls out some of our great local suppliers in the state of Georgia,” Waldau said.

In some cases, Food Lion will take it a step further in certain cities with hyper-local items. “You may go into Charlotte and see an item that's only in the Charlotte stores,” he added.

DIVERSE-OWNED SUPPLIERS

In working with the overall supplier community, Waldau said some of the work the company does in local has also been a great entry point into identifying diverse suppliers in the marketplace as well.

“As items come in from suppliers, we include those in our category review cycles to make sure that our category managers – when they're doing their category reviews on a scheduled basis – that they are also included in that work, any qualified diverse products that are out in the marketplace that may fit within that particular category,” Waldau said.

“This ensures that the review of diverse suppliers and products fits in our business cycle and doesn’t sit outside. When things sit outside your normal business process, sometimes they have a harder time catching on and getting implemented. But when we build it into our process, it's a great way for us to make sure that we're giving visibility and taking advantage of some of the opportunities.”

Food Lion has 175-plus certified diverse suppliers supporting it. One example of these partnerships is with TWT Distributing, which supplies many ethnic haircare products. It’s a partnership that Waldau said dates back decades.

Food Lion also has provided grants to the CarolinasVirginia Minority Supplier Development Council to help grow potential suppliers in this region.

OVERALL ASSORTMENT

From an overall assortment standpoint, Waldau has seen an evolution in Food Lion’s offerings when compared to 10 years ago. As an example, he’s been proud to see the expansion in organic products across the store, grass-fed beef and other healthy options.

“How do we continue to deliver against the needs of our customers and communities? Localized assortments and offerings continue to evolve and to follow our strategy of ‘Easy, Fresh and Affordable... You Can Count on Food Lion Everyday!’”

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$50M deposit to support diverse-owned lending

Based in North Carolina, M&F Bank is a venerable financial institution

Food Lion recently announced a $50 million deposit supporting M&F Bank, the second-oldest minority-owned bank in the United States.

M&F Bank has branches in Durham, Raleigh, Charlotte, Greensboro and Winston-Salem, North Carolina. The deposit will provide the bank with greater financial opportunities for the communities it serves, including loans to small businesses, investments in technology and financial literacy programs.

With this deposit, Food Lion and M&F Bank have created a partnership that will build on their shared commitment to provide financial solutions for underserved communities.

“We are consistently working to nourish the towns and cities we serve, and many times that is with food and also with possibility,” said President Meg Ham. “This deposit will infuse our shared communities with financial opportunities for economic development, job creation, racial equity and social justice initiatives.”

The deposit is an extension of community work that began more than 30 years ago. Support of diversity, equity and inclusion drives all aspects of the business, including an integrated workforce, inclusive workplace and inspirational marketplace.

“We are two regional organizations focused on the economic development of

our communities,” said James Sills, M&F Bank president and CEO. “This partnership with Food Lion provides momentum, allowing us to make real change for historically underserved communities. We thank Food Lion for their trust and commitment to M&F Bank.”

The funds will be managed by J.P. Morgan Asset Management through its Empowering Change program, part of its commitment to bringing new economic opportunities to historically disadvantaged communities.

Founded in 1907 in North Carolina, M&F Bank is the second-oldest African American-owned bank in the United States.

With $372 million in total assets, it is the eighth-largest African American-owned financial institution in the United States and the only bank in North Carolina to receive CDFI designation.

The bank’s mission is to promote personal and community development by providing capital to small- and mediumsized businesses in its local communities.

Food Lion has more than 1,100 stores in 10 Southeastern and Mid-Atlantic states and employs more than 82,000 associates. Food Lion is a company of Ahold Delhaize USA, the U.S. division of Zaandambased Ahold Delhaize.

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2021 Southeast Retailer of the Year

Named No. 1 Loyalty Grocery Retail Program in U.S.

MVP Rewards helps customers save every day on nearly everything in store

Food Lion’s MVP Rewards customer loyalty program was named The Loyalty Report’s Best U.S. Grocery Retail Program of 2020.

Bond’s annual report, produced in partnership with Visa, surveyed nearly 70,000 consumers on some 100 attributes that examine more than 1,000 loyalty and credit card programs across 34 global markets.

“Nourishing our communities is at the core of everything we do at Food Lion, and making it easier for our neighbors to affordably and reliably feed their families is what we’re all about,” said Neil Norman, director of customer loyalty and shopper marketing. “This honor is a great testimony to our brand, our strategy and our culture.”

The attributes surveyed included loyalty mechanics, program influence, behavioral loyalty, emotional loyalty, earn mechanics, rewards and redemption, brand alignment, human experiences, and digital experiences.

According to report, continued customer loyalty brings positive outcomes for brands, the following

facts also stood out:

* 72 percent of customers say they are more likely to recommend brands with good loyalty programs.

* 78 percent of customers say they are more likely to continue to do business with compa nies that have good loyalty programs.

The Food Lion MVP Program allows shoppers to save on top of Food Lion’s everyday low prices, as well as earn monthly rewards on items they already buy.

The program offers exclusive coupon discounts to MVP Reward program participants, enables them to track their savings and save hundreds of dollars on their groceries all by creating a free account.

Since Food Lion’s Shop & Earn MVP personalized rewards program launched in February 2018, MVP customers have saved more than $58 million on top of their usual MVP savings.

Customers can participate in Shop & Earn by creating a digital MVP card account at Foodlion.com or via the Food Lion app and loading their monthly offers.

In its 10th year of publication, The Loyalty Report, produced in partnership with Visa, is recognized as the industry’s longest-standing and largest global study on customer engagement, loyalty attitudes, behaviors, drivers and distribution.

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2021 Southeast Retailer of the Year

To-go services expanded but not at expense of in-store experience

Leaders know not all shoppers choose to engage digitally

Shopper expectations continue to change as a result of the COVID-19 pandemic. That means being able to meet every customer through multiple channels.

Food Lion executives say the grocer will continue to evolve, and recent history speaks to that. The company had already implemented digital services before the industry was disrupted in 2020.

Deborah Sabo, SVP of marketing, can recall when Food Lion To Go was introduced at three stores in 2018.

“Then we evolved, and we grew, and this is a model of all of us,” she said. “I call it test, learn and reapply. We figure it out based on the customer and the insight she gives back to us how best to set this model up.

“And so, we were chugging along, and we were introducing hundreds of stores into our click and collect, we had a delivery model that we offered as well.”

Soon enough, the COVID-19 pandemic hit, and demand increased exponentially. Food Lion responded and has continued to do so this year.

“We quickly expanded into more locations, offering click and collect or what we refer to as Food Lion To Go,” Sabo said. “We also expanded the ability to deliver groceries to people’s houses through our partnership with Instacart. And so yes, we grew much faster than was traditional Food Lion style to test, learn and reapply.”

On June 4, the company announced the expansion of its grocery pickup service to 32 stores in North Carolina, South Carolina and Virginia. On June 28, it announced the expansion of to 14 more stores in North Carolina and Virginia. By the end of 2021, more than 150 new stores will have been added this year.

Customers can confirm availability and place orders through the Food Lion To Go website or the Food Lion To Go app.

“It was a necessity based on the state of the world in which we lived in,” Sabo said. “Wow, it was hard… so we did the best we could to offer the time slots customers wanted. But instead of a two-hour time slot, maybe it stretched out a little bit to a day because of the huge demand that was on everyone’s shoulders. But it was exciting. It was painful. The teams were tired, but we did it.”

Sabo credits retail associates for not only serving

anxious customers in the midst of the pandemic, but also picking online orders to ensure the nourishment of their neighbors.

“We learned a lot. We learned how to be more efficient in how we pick and how more efficient in how we go to market from an e-commerce perspective,” she said.

Addressing Omnichannel

Sabo said Food Lion’s philosophy on how it treats customers from a company perspective, as well as a marketing perspective, is all about putting customers

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in charge – it allows them to make choices. That means engaging with the brand any way they want.

“We will evolve to allow her to shop with us however, whenever she wants by introducing an e-commerce platform,” Sabo said. “So when I talk omnichannel, it’s about being in charge and allowing her to engage with our brand the way she wants both digitally and traditionally.”

Sabo and the Food Lion team are aware that not all customers are ready to engage digitally.

“So I’m not going to stop the direct mail piece to her home that offers her the value at the beginning of the month with the coupons that matter most to her,” Sabo said.

Loyalty members, or MVP card holders, can also find an MVP Savings Center Kiosk as they walk in stores. They scan their card there, which prints a personalized savings sheet as a reference to shop for items on sale. Customers then scan their MVP Card again at checkout and all of their digital coupons will automatically be applied.

“We won’t just put all of our eggs in the basket of being an e-commerce retailer, because it matters that our customers still want to visit and see our associates in the store and shop at brick and mortar.”

At a glance

Food Lion To Go is available seven days a week from 10 a.m. to 8 p.m.

Here’s how it works:

➨ Visit shop.foodlion.com or open the Food Lion To Go app.

➨ Enter zip code and select the closest participating store.

➨ Add fresh groceries and everyday essentials to the virtual cart.

➨ Choose a pickup window (same day or up to seven days in advance) and check out.

➨ A To Go shopper picks, packs and stores the order, then loads it in the vehicle when it’s picked up.

Customers able to redeem EBT SNAP online while using the mobile app Option increases convenience across 10-state service area

Supplemental Nutrition Assistance Program participants across the 10 states Food Lion serves are now able to use their electronic benefit transfer card while shopping online at Food Lion through Food Lion To Go.

SNAP participants simply link their SNAP/EBT food card information as a form of payment, then select the eligible fresh food and grocery items just as they would if shopping in the store.

With the click of a button, Food Lion To Go allows customers to experience the same low prices and fresh food items from the comfort of home. The convenient service allows customers to place an order and pick up their groceries on the same day.

“We’re excited to now offer all our neighbors using SNAP/EBT this new option to shop however they prefer, in-store or online,” said Evan Harding, director of digital and eCommerce.

“Food Lion To Go allows customers the ability to shop from wherever is most convenient, while still ensuring they have access to fresh, nutritious food to nourish their families. It’s one of the many ways Food Lion makes grocery shopping easy, fresh and affordable for our neighbors.”

By linking their personal MVP savings loyalty card to their account, Food Lion customers can use digital coupons and redeem their Shop & Earn MVP rewards program savings.

Customers can also see their accumulated Shop & Earn rewards on their checkout screen and view the clipped digital coupons that will be applied to their order. This is in addition to their MVP discounts, in-store promotions and weekly savings specials.

DECEMBER 2021 • THE SHELBY REPORT OF THE SOUTHEAST 48
From page 46

2021 Southeast Retailer of the Year

Sustainability policies bolster product labeling, animal welfare

Help provide healthier food choices, greater transparency

Food Lion has implemented sustainability policies for genetically modified foods and farm animal welfare.

Working in partnership with Retail Business Services, which develops private brand products for each of the Ahold Delhaize USA local brands, Food Lion is requiring all private brand products to have clear on-pack Bioengineered Food labeling.

“At Food Lion, a healthy and sustainable community is at the heart of everything we do,” said Geoff Waldau, EVP of merchan dising. “We are committed to nourishing our neighbors in the towns and cities we serve in a sustainable manner.

“In addition to providing healthier food choices and more locally sourced products for our customers, we are working hard to deliver greater transparency into the food they buy. The addition of these policies furthers our commitment to nutritious, transparent products that meet our customers’ preferences and lifestyles.”

The policies build on previously announced commitments regarding sustainable chemistry, climate change and artificial ingredients.

They also build on Food Lion’s announcement that it joined the Ocean Disclosure Project early in 2020 to increase transparency of sustainable seafood sourcing efforts. Food Lion has an

industry-leading sustainable seafood policy covering more than 2,500 products, and all of its own brand coffee, cocoa, tea and soy products are 100 percent sustainably sourced.

GMOS

Under the GMO policy, Food Lion is requiring all private brand products to have clear on-pack bioengineered food labeling by the federal bioengineered labeling

Food Lion supports the National Bioengineered Food Disclosure Standard and also is committed to monitoring science and assessing risk around GMOs and will look to organizations such as the World Health Organization, the U.S. Food and Drug Administration and the U.S. National Academy of Sciences to continue to enhance the GMO policy.

For customers who want to avoid GMOs, Food Lion offers Nature’s Promise products. None of the items (organic or non-organic) include any intentionally added GMOs.

Food Lion also offers products that are non-GMO certified by a third party. The company does not knowingly sell animal products derived from genetically modified protein sources, including salmon, and does not plan to carry these products

ANIMAL WELFARE

Food Lion will not tolerate animal abuse and supports the globally recognized “Five Freedoms” of animal welfare.

Under its farm animal welfare policy, Food Lion expects suppliers of whole or single ingredient cattle products, whole pork products, whole or single ingredient poultry products and other whole or single-ingredient products derived from farm animals to have an established publicly-facing animal welfare policy.

In addition, they must report annually that they meet animal welfare acceptable levels of assurance and disclose progress through an annual animal welfare assessment and provide adequate training in their native language to all people involved with the direct handling of animals throughout the supply chain.

The policy also addresses the following areas:

⚫ Animal testing: The company does not support the testing of private brand food, pharmaceutical or cosmetic products and their ingredients on animals; nor does it ask suppliers of private brand products to conduct animal testing, unless there is a legal obligation.

⚫ Antimicrobials: It supports the judicious use of antimicrobials on farm to help sick and injured farm animals with a veterinarian’s oversight. The company does not support the use of antimicrobials medically crucial to humans nor the prophylactic use of antimicrobials in animal farming.

⚫ Broiler chickens: The grocer recognizes concerns related to growth size and rate and stocking density of chickens raised for meat production and is actively speaking with suppliers, stakeholders and animal welfare experts to develop a set of product standards related to breed, stocking density and enriched environments. It also is examining science-based studies to make updates to the animal welfare policy.

⚫ Confined housing systems: Food Lion has committed to working with suppliers to reach a 100 percent cage-free shell egg assortment by 2025 or sooner. It understands there are several confinement concerns linked to gestation stalls for breeding pigs or sows, and the companies are asking pork suppliers to transition to group housing and eliminate the use of gestation stalls by 2025 or sooner.

⚫ Growth hormones: The company sells only private brand milk products free of the artificial growth hormone rBST/rBGH. Additionally, it offers Nature’s Promise free from meat that prohibits the use of hormones and growth stimulants.

⚫ Pain management: Food Lion expects suppliers of fresh and frozen products derived from whole or single ingredient cattle, pork, poultry and other whole or single-ingredient products derived from farm animals to have written policies detailing best practices for managing painful procedures to reduce suffering.

DECEMBER 2021 • THE SHELBY REPORT OF THE SOUTHEAST 50

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