Sponsored By

Ahold Delhaize closes out fiscal 2018 with sales gains

Global food retailer reports ‘good momentum’ in U.S. sales

Russell Redman

January 23, 2019

2 Min Read
Supermarket News logo in a gray background | Supermarket News

Net sales at Ahold Delhaize rose at constant exchange rates for the 2018 fourth quarter and fiscal year, including improved performance in the company’s U.S. retail grocery business.

In a trading statement released Wednesday, Ahold Delhaize said sales totaled €16.55 billion ($14.51 billion U.S.) for the quarter, up 5% (3% in constant currency) from €15.76 billion ($13.38 billion U.S.) a year earlier.

Net consumer online sales in the period surged 27.3% to €1.1 billion ($972.4 million) from €872 million ($740.4 million), the Zaandam, Netherlands-based retailer said.

Ahold Delhaize USA saw fourth-quarter sales climb 5.9% (2.6% in constant currency (5.9%) to €9.80 billion ($8.59 billion) from €9.25 billion ($7.85 billion). Online sales came in at €203 million ($178 million) for the period, up 15.8% (12.1% in constant currency) from €175 million ($148.6 million) a year ago.

“Sales performance in the United States continued to show good momentum,” the retailer said. U.S. same-store sales grew 2.7% in the quarter (2.6% excluding fuel), lifted in part by more favorable weather, compared with a 1% year-over-year increase in the 2017 fourth quarter, the company reported.

“Online sales growth accelerated to 12.1% at constant exchange rates, as our food e-commerce initiatives started to gain traction at each brand,” Ahold Delhaize stated about its U.S. business in the fourth quarter. “Food Lion continued to benefit from the rollout of the ‘Easy, Fresh and Affordable’ program, now in 70% of its stores. Full-year 2018 market share across our brands is expected to have increased compared to last year.”

Related:Giant/Martin’s, Stop & Shop begin robot rollout

For the full 2018 fiscal year, Ahold Delhaize’s overall net sales dipped 0.2% to €62.79 billion ($53.22 billion U.S.) from €62.89 billion ($55.77 billion U.S.) in 2017. However, at constant exchange rates, the company recorded a 2.5% sales increase for the year.

Net consumer online sales for the year jumped 23.9% (25.3% in constant currency) to €3.51 billion ($2.97 billion) from €2.83 billion ($2.51 billion).

Overall, Ahold Delhaize finished fiscal 2018 with 6,769 stores, representing a net increase of 132 stores (222 opened or acquired, 90 closed). Ahold Delhaize USA had 1,961 stores at the year’s end, marking a net gain of one store (nine opened or acquired, eight closed). The company’s U.S. supermarket chains include Stop & Shop, Giant/Martin’s, Giant Food, Food Lion and Hannaford, as well as the Peapod online grocery unit.

Ahold Delhaize is scheduled to report full 2018 fourth-quarter and annual results on Feb. 27. For the year, the company expects underlying earnings per share from continuing operations at the higher end of its previous guidance of €1.50 to €1.60.

Related:Ahold Delhaize makes its move

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like