ZAANDAM, Netherlands (FNS) -- Ahold here is on the lookout for more acquisitions in the United States following its $1.8 billion purchase of Stop & Shop Cos., Quincy, Mass., but no deal is expected in the near future.
Cees van der Hoeven, Ahold's president, said the company believes there is scope for more purchases in the United States given the size of the country. The targets are food retailers with sales of at least $1 billion a year located no further west than Chicago, an Ahold spokesman said.
However, the spokesman said that while Ahold is in friendly talks with several companies, no acquisition is expected in the near term.
Van der Hoeven said at the company's annual meeting here that Stop & Shop has fully met Ahold's expectations. He detailed the restructuring of the company's U.S. operations into four operating units, which has resulted in an increase in coordinated buying, more efficient distribution and logistics and better economies of scale.
In the Netherlands, Albert Heijn is aiming at increased operating efficiencies and adding extra value to its services, van der Hoeven said. It also has developed a new store format, currently being tested in two stores in Haarlem and Purmerend, which focuses on a marketplace approach with a cooking school, pizza parlor, coffee bar and bakery as well as areas devoted to specific meal solutions for different times of the day.
It also has linked up with Shell to open food stores at gas stations and is continuing to experiment with home shopping, Van der Hoeven said.
Elsewhere in continental Europe, van der Hoeven said Ahold's stores in the Czech Republic are now profitable although its Polish operation is still loss-making, as is Ahold's venture in Spain with Caprabo. The Portuguese chains Pingo Doce and Feira Nova contributed significantly to earnings. In other global markets, Ahold is expanding in Brazil through acquisition and its partnership with Bompreco in northeastern Brazil.
In the Far East, the company is ramping up expansion in Singapore and Malaysia and plans to open a number of Tops Friendly Markets stores in Thailand this year through a deal with Central Robinson, that country's largest food retailer. It also has opened a Tops store in Shanghai, China, and continues to expand slowly in Indonesia.
Van der Hoeven said net earnings this year will be "considerably higher" than in 1996 as a result of a full-year's contribution from Stop & Shop, a positive contribution from Bompreco in Brazil and further growth in Ahold's existing operations.
Ahold had a 48.2% increase in sales in the first quarter to $7.33 billion (14 billion Dutch guilders). It also has asked shareholders to approve a three-for-one split in its shares, effective July 21.
