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Ahold U.S. sales, share down in Q4

Ahold said food price disinflation and the effects of lapping a sales boost related to Hurricane Sandy led to a 2.1% decline in U.S. sales and in non-fuel identical-store sales for the fiscal fourth quarter.

Jon Springer, Executive Editor

January 16, 2014

2 Min Read
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Ahold said food price disinflation and the effects of lapping a sales boost related to Hurricane Sandy led to a 2.1% decline in U.S. sales and in non-fuel identical-store sales for the fiscal fourth quarter.

U.S. sales totaled $6 billion for the quarter. Comparable-store sales, excluding fuel, decreased by 2%, and market share dipped slightly, reflecting the effect of Hurricane Sandy last year when Ahold was able to reopen stores faster than many of its competitors in the Northeast.

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For the fiscal year, U.S. sales increased 1.1% to $26.1 billion. Non-fuel identical sales increased by 0.3% for the year.

While the Amsterdam-based retailer said it expects a cost-reduction program will protect margins for the quarter, analysts at Morgan Stanley said the “disappointing” sales performance will likely require the company to invest more aggressively in price and lead to compressed margins in the current fiscal year.

“Today’s ID sales decline reinforced our belief that Ahold’s U.S. pricing is not competitive (as evidenced by our and third-party price surveys) and that Ahold will be required to narrow the gap,” Edouard Aubin, the Morgan Stanley analyst, said in a research note.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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