Ahold Delhaize’s decision to orient its online fulfillment capabilities towards more efficient, less asset intensive same-day delivery models paid off during the first quarter in the U.S. The retailer’s online sales sprouted 4.7% year over year, mainly fueled by new customer growth.
In early February, Ahold Delhaize USA announced it was partnering with DoorDash. The service was expected to be rolled out to all chains by March.
The digital success helped offset sluggish sales overall in the U.S. Net sales declined 0.6% year over year at constant exchange rates. Comparable sales growth excluding gas grew minimally at 0.8%.
Overall, Ahold Delhaize had a first quarter worth celebrating as net sales increased 1.3% at constant exchange rates, and comparable sales excluding gas was up 1.6% year over year.
Due to the divestment of FreshDirect online sales overall took a slight hit, dropping 1.0% year over year.
“I am pleased to report a stable first quarter, placing us well on track to reach our goals and aspirations for the year,” said Frans Muller, president and CEO of Ahold Delhaize. “The external environment remained challenging, similar to the second half of 2023.
“As we tee up to our new strategic plan, we are working hard to ensure we are fit and ready to transition to a more robust growth profile.”
Projections for the year remained relatively unchanged. Underlying operating margin is expected to be 4.0% or higher, and underlying EPS is expected to be at around 2023 levels at current exchange rates.
