Ahold Delhaize singled out American retail banners as it reported its strong third-quarter performance with increasing sales growth and improved margins.
Ahold Delhaize CEO Dick Boer said margins increased significantly, driven by synergies while “savings from our ‘Save For Our Customer’ programs are continuously being reinvested in the business.”
He said in the U.S., inflation returned at low levels and sales performance improved. Despite a competitive landscape with new entrants, Ahold Delhaize gained market share. Boer also stated that Food Lion continued to report strong volume growth, supported by the roll out of its “Easy, Fresh & Affordable” strategy, and Stop & Shop New England benefited from a strong summer holiday season.
Overall, Ahold Delhaize’s sales growth increased 21 percent in the third quarter. Boer reported that the company’s online businesses in the U.S. and Europe grew more than 20 percent. He said the company is on track to realize almost $3 billion in online consumer sales and near $5 billion by 2020.
Ahold Delhaize says it will continue investing to improve its portfolios of own-brand products. This includes combining Ahold USA and Delhaize natural and organic own brands with a total annual sales of $1 billion into the Nature’s Promise brand that will be introduced across other businesses.
Boer was pleased to report that with the introduction of the “My Hannaford Rewards” program, all U.S. brands have implemented a digital customer loyalty program.