Ahold Delhaize posts more than $11 billion across two U.S. divisions
ZAANDAM, the Netherlands — Ahold USA on Monday generated $7 billion in second quarter sales. While comparable to the year-ago period though, those sales were reached with 24 fewer stores. Comparable sales growth for the quarter was up 0.3%.
The company reported a positive impact on the timing of Easter that was offset by Fourth of July holiday sales and last year's competitive closures in the New York market. At the end of the quarter, Ahold USA announced new price investments in own brands, produce, milk and eggs.
Delhaize America meanwhile posted $4.7 billion in net sales on 1.3% comparable growth. The rollout of the "Easy, Fresh & Affordable" strategy at Food Lion is "progressing well" the company reported, with all the remodeled markets continuing to record positive real growth. In the second part of 2017, that program will be rolled out into two new market areas, including Greensboro and Richmond, with 164 stores to be remodeled.
"We are pleased to report a strong set of results," reported Dick Boer, Ahold Delhaize CEO. "In the United States, our sales performance improved with returning inflation, while margins expanded on the back of strong synergy savings. Our U.S. brands are well-placed in a fast-changing competitive landscape," he said. "We continue to improve the price positioning of our Ahold USA brands and have developed effective competitive plans for Food Lion, facing new competition."
Gallup: Shoppers slow to adopt online grocery shopping
WASHINGTON — Shopping for groceries online has a long way to go before it catches on with the vast majority of U.S. consumers, according to new data from Gallup.
Nine percent of U.S. adults report that their household shop online for groceries at least once a month, including 4% who do it at least weekly, according to Gallup's annual Consumption Habits survey. By contrast, almost all Americans say someone in their family shops for groceries in person at least once a month, with 83% going at least once a week.
This pattern — highly frequent grocery shopping occurring mostly in person — highlights the possibility for enormous growth that exists in the online grocery business, the survey reported. Amazon's purchase of Whole Foods Market recently underscored this possibility, giving rise to speculation the online giant will use the grocery chain as a launching pad to expand its online operations into the food sector, according to the survey.
In the report, Gallup noted that while the vast majority of consumers still mostly do their grocery shopping in person, this may change, with experts asserting the traditional grocery business may be in a situation similar to that of department stores in recent years, with more retail space than the market can sustain.
"Traditional grocery stores may find their market share continuing to erode because of changing shopping patterns, particularly online shopping, and may be forced to maintain viability by cutting costs and reducing service, the report said.
Here are some key findings from the Gallup report:
- Fifteen percent of U.S. adults aged 18 to 29 say they purchase groceries online at least monthly, similar to the 12% among those 30 to 49 and 10% of those 50 to 64.
- A negligible 2% of those aged 65 and older shop for groceries online at least once a month. At the same time, however, age has little relationship to shopping in person at grocery stores, which is nearly universal across all age groups.
- Americans living in the eastern U.S. and those residing in cities are modestly more likely than their counterparts to go grocery shopping online.
- Working adults, perhaps because they have less time to shop, are almost twice as likely as those who are not working to do their grocery shopping online.