Belgian food retailer Delhaize says it remains 'on track' to cut its costs by €100m this year, having made around €60m in savings during 2008.

The company also plans to make working capital improvements worth a total of €50m in 2009, according to chief executive Pierre-Olivier Beckers.

'We are well on our way to reaching these targets,' he said.

Meanwhile, the supermarket operator added that it was also confident of achieving 3 per cent growth in operating profit at stable exchange rates this year.

Excluding an extra week's trading in 2008, growth is set come in at between 3.5 per cent and 6 per cent, the group said.

With around 70 per cent of its business in the US, first-quarter profits reported earlier in May suggest recent discounting promotions have been well received.

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