Ahold Delhaize: USA market update

Jonathan Hawkins
Retail Analyst - Data
@RetailAnalysis

Date : 25 September 2019

We round up the latest news from Ahold Delhaize as it commits to reducing its chemical footprint. We also look at how its US banners are innovating in-store and expanding their online services.

Reducing chemical footprint

Ahold Delhaize USA has announced plans to make its private label products more sustainable. The retailer has pledged to restrict the use of toxic chemicals, such as such as PFAs, BPAs and Phthalates, from its products and packaging across its stores nationwide.

Ahold said it will also work with suppliers to ensure that its products exceed the ingredient standards currently required by law. This will see the retailer expand its supplier testing requirements from 2020 to guarantee that products meet high standards. In addition, Ahold will collaborate with agricultural producers and organisations to address the root causes of contaminants.

From 2020, Ahold will participate in The Chemical Footprint Project. The retailer said, “Sustainable chemistry is a complex and evolving topic, but one that Ahold Delhaize USA and its companies are committed to addressing in collaboration with others in the best interest of consumers.”

Stop & Shop offers free access to The Dinner Daily …

Ahold’s US supermarket banner, Stop & Shop, is offering 30,000 shoppers free access to The Dinner Daily meal planning service, in celebration of National Family Meals Month. The service will provide shoppers with a personalised weekly dinner menu based on their family food preferences as well as products on sale. Other benefits include weekly meal plans, editable shopping list, customisable food preferences and dietary needs and one-click ordering from online grocer Peapod.

Stop & Shop said, “As our customers adjust to busy back-to-school routines, we’re hoping to make dinners easier with this stress-free way to plan their weekly family meals and save money while doing it. Stop & Shop and The Dinner Daily are excited to offer this service to our customers to help take the challenge out of the nightly ‘what’s for dinner’ question.”

…and introduces BreadBot

Separately, Stop & Shop has partnered with the Wilkinson Baking Company to install a BreadBot at its Milford store in Massachusetts. BreadBot is an automated small bakery which can mix, form and bake up to ten loaves per hour, 24-hours a day. This in-store production means that shoppers can purchase fresh bread at any time of the day. It also removes the transportation and carbon footprint costs associated with traditional food production.

…while it remodels 21 Long Island stores

The retailer has also announced it will invest US$133m in remodelling 21 stores in its Suffolk County, Long Island locations. Stop & Shop president Gordon Reid commented, “The remodelling of our Long Island stores is a key milestone in our journey to refresh the Stop & Shop brand for the future and to strengthen our position as market leader”.

The announcement is part of the retailer’s Reimagining Stop & Shop multi-year initiative to refresh the brand’s stores across the Northeast. The remodels will improve the in-store experience by offering a wider range of fresh, healthy, and convenient options. They will also include, in-store cafes, SCAN IT! Mobile checkout, same day online pick-up as well as a dedicated Italian section.

Food Lion expands click-and-collect service

Elsewhere in the US, Food Lion has expanded its click and collect service to 25 more stores in Virginia and North Carolina. This means that 141 Food Lion stores now offer the To-Go service. Ahold said it hopes to introduce a pickup service to over 600 US supermarkets by the end of the year.

Shoppers can purchase their groceries online through the To-Go service at shop.foodlion.com or via the app. Food Lion then uses personal shoppers to pick and bag the orders, which are available for collection in an hour.

Learn more about the three digital retail models of the future

Our new research examines how data and technology are transforming retail business models.