Ahold Delhaize has reported its results for the first half of 2018, with net sales at constant exchange rates increasing by 1.7% to €30.5bn. Net income at constant exchange rates increased by 22.7% to €817m.
USA: net sales at constant exchange rates +0.9%, online +8.5%
In the USA, which accounts for around two thirds of the retailer’s business, net sales at constant exchange rates increased by 0.9% to €18.1bn. Online sales increased by 8.5% at constant exchange rates to €363m.
Highlights: online, Food Lion volume, Hannaford loyalty and prepared food
- ‘Ahold Delhaize USA announced the launch of Peapod Digital Labs, which will drive digital and e commerce innovation, technology and experience to meet the changing needs of customers'
- ‘Food Lion reported its 24th consecutive quarter of volume growth’
- ‘At Hannaford, nearly one million customers are now enrolled in the My Hannaford rewards program, contributing to positive volume growth this quarter’
- Giant/Martin's announced a new e-commerce facility in Lancaster County, Pennsylvania, that will serve as a grocery delivery center and offer curbside pickup orders. The facility will also feature a walkable pickup point to meet the growing local demand for online grocery’
- ‘Giant Food successfully relaunched its prepared food category, showing encouraging growth after the launch’
Volumes challenged at Stop & Shop
However, Ahold Delhaize noted that volumes were challenged at Stop & Shop, although it expects sales to improve.
Netherlands: net sales +2.8%, online sales +23.5%
Elsewhere, in the Netherlands, net sales in the first half increased by 2.8% to €6.9bn, while comparable sales grew by 3.1%. During this time online sales increased by 23.5% to €879m.
Highlights: 'My Nutritional Value' tool, smart door locks, seamless checkouts and new concept store
During the first half, Albert Heijn launched its online nutritional tool, 'My Nutritional Value', which gives loyal shoppers insight on the nutritional value of their grocery shopping. It also piloted grocery delivery using smart locks.
Meanwhile, in-store, Albert Heijn has been rolling out its seamless checkout system. It has also launched the new concept Albert Heijn Hoofddorp supermarket, which has been shortlisted for the IGD Store of the Year Award 2018.
Belgium: positive sales trend continued, reflecting ongoing improvements
Elsewhere, the positive sales trend in Belgium continued, with net sales in the first half increasing by 3.4% to €2.5bn, while comparable sales grew by 2.7%. During this time online sales also increased by 27.7% to €24m.
Ahold Delhaize noted that its performance reflected ‘ongoing commercial and operational improvements’. Delhaize Belgium launched a new strategy recently as it prepares for the future. Find out more about this here.
Central and Southern Europe: net sales at constant exchange rates +2.7%...
Meanwhile, Ahold Delhaize’s business in the Czech Republic, Romania, Serbia and Greece saw first half net sales at constant exchange rates increase by 2.7% to €2.9bn. Comparable sales increased by 1.6%.
Recently the retailer has opened 120 new stores in the region, the majority of these are convenience stores.
With performance driven by Romania's double-digit comparable sales growth...
Romania continued to be a highlight, with comparable sales growth of 11.0% in Q2. This builds on comparable sales growth in the same period last year of 11.2%.
...As it continues expansion and opens new concept store
Q2 2018 saw the retailer’s Mega Image fascia open 17 new stores. In doing so, it continued to expand its presence in Bucharest, while it recently entered Timisoara, western Romania. Openings included the new concept Baneasa store, which offers a ‘meet and eat corner called “Casual Bistro”’.
Performance in Greece remains challenging...
Elsewhere in the region, in Greece, 'comparable sales growth remained negative, with sales trends improving toward the end of the quarter’.
...With management changes to come
Ahold Delhaize has made changes to its management teams in Greece and Romania recently. Vassilis Stavrou, currently responsible for Mega Image to Romania has been appointed as brand president of Alfa Beta in Greece. Stavrou will be succeeded by Mircea Moga, currently Vice President of Commercial and Logistics for Mega Image. These appointments come into effect on October 1st.
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