Ahold Delhaize's U.S. banners post 2.1% net sales gains for Q1
Ahold Delhaize on Wednesday reported $10.5 billion in first quarter sales across its U.S. banners, representing growth of 2.1%.
"The U.S. brands, which are reported as one segment as of Jan. 1, reported improved comparable sales growth excluding gasoline of 2.8%, supported by the favorable impact of holidays and some weather impact. The underlying operating margin rose 30 basis points to 4.3%, driven by synergies and with our 'save for our customers' program offsetting cost inflation," Dick Boer, Ahold Delhaize CEO, said. "In a competitive market with new entrants, Food Lion reported its 23rd consecutive quarter of comparable volume growth, as its 'Easy, Fresh and Affordable' program is now deployed in more than 500 of its stores. Furthermore, online sales grew 9% across all our U.S. brands."
Overall, the company reported $17.7 billion in net sales, up 2.5% at constant exchange rates.
Ahold Delhaize will be introducing its Guiding Stars shelf talker program across its U.S. banners, Boer reported. Guiding Stars is a nutrition navigation program that helps shoppers both buy healthier and shop more efficiently. "It's exciting because Guiding Stars help our customers select from the shelf which products are healthier and more nutritious," Boer said. Internally, the international grocer has set a goal that by 2020 half of its own brand offerings will fall into those "healthier for you" categories called out by Guiding Stars.
Stop & Shop stepped up their ambition with regard to healthy food in the quarter, Boer added. "In their new, just-opened MIlford store in Massachusetts, they included a complete new fresh department with salad bars and fresh juices ready-to-eat in the store or take it home," he said. "That's really how we can step up in our stores to help our customers live healthier lifestyles."
"The U.S. brands, which are reported as one segment as of Jan. 1, reported improved comparable sales growth excluding gasoline of 2.8%, supported by the favorable impact of holidays and some weather impact. The underlying operating margin rose 30 basis points to 4.3%, driven by synergies and with our 'save for our customers' program offsetting cost inflation," Dick Boer, Ahold Delhaize CEO, said. "In a competitive market with new entrants, Food Lion reported its 23rd consecutive quarter of comparable volume growth, as its 'Easy, Fresh and Affordable' program is now deployed in more than 500 of its stores. Furthermore, online sales grew 9% across all our U.S. brands."
Overall, the company reported $17.7 billion in net sales, up 2.5% at constant exchange rates.
Ahold Delhaize will be introducing its Guiding Stars shelf talker program across its U.S. banners, Boer reported. Guiding Stars is a nutrition navigation program that helps shoppers both buy healthier and shop more efficiently. "It's exciting because Guiding Stars help our customers select from the shelf which products are healthier and more nutritious," Boer said. Internally, the international grocer has set a goal that by 2020 half of its own brand offerings will fall into those "healthier for you" categories called out by Guiding Stars.
Stop & Shop stepped up their ambition with regard to healthy food in the quarter, Boer added. "In their new, just-opened MIlford store in Massachusetts, they included a complete new fresh department with salad bars and fresh juices ready-to-eat in the store or take it home," he said. "That's really how we can step up in our stores to help our customers live healthier lifestyles."