The Belgium-based Delhaize Group has now projected its net income for 2008 will increase by 15 to 20%, down from a previous forecast of 25 to 30%. Annual sales growth is predicted to be between 3 and 4.5%, less than its previous forecast of 4 to 5.5%.The retailer cites the continued weakening of the consumer environment in the US and Europe as the reason.

Consumers in these regions are turning toward cheaper merchandise, and buying fewer items per visit. Delhaize has added private label products, lowered prices, and offered in-store promotions in an effort to lure customers.

“To increase our relevance to the pressured consumers, all of our operating companies continue to build their private label offering and to increase their price competitiveness and promotional activity,” said Pierre-Olivier Beckers, president and CEO of Delhaize Group. “In this challenging market environment, we remain focused on reinforcing our store concepts and execution, supported by our experienced management teams and strong profitability and balance sheet.”

Delhaize has also released projected second-quarter revenues and operating profit, ahead of the publication of its full results on Aug. 4. It expects second-quarter operating profit to fall 22%, to €194 million. Projected sales for the quarter are €4.5 billion - a decrease of 7.5%.

[Click here for a Delhaize overview by country.]