ZAANDAM, The Netherlands — Ahold Delhaize has released its Q1 2025 results. Ahold Delhaize USA reported solid first-quarter performance for 2025, with comparable sales growth, a surge in online orders, and ongoing investment in customer value propositions helping to offset broader macroeconomic pressures and store closures.
The U.S. segment of Ahold Delhaize, which includes grocery brands such as Food Lion, Hannaford, Stop & Shop, and Giant Food, recorded net sales of €13.9 billion in Q1. This marks a 1.8% increase at constant exchange rates and a 5.2% rise at actual rates. Comparable sales excluding gasoline climbed by 3.1%, with much of the growth driven by digital expansion and targeted price reductions to reinforce customer loyalty amid an uncertain economic climate.
"I am pleased to report strong first quarter sales growth, placing us well on track to reach our goals and strategic ambitions for 2025. It has been a dynamic start to the year for customers in both regions, with increasing macroeconomic and geopolitical volatility. In the U.S., there have been spikes in the price of eggs and evolving conditions around tariffs. In Europe, we have experienced ongoing conflict and tension in Ukraine and large-scale anti-corruption protests in Central and Southeastern Europe (CSE),” said Frans Muller, President and CEO of Ahold Delhaize.
Digital sales drive growth
Online sales in the U.S. jumped 17.9% at constant exchange rates, continuing a trend of double-digit growth for the fourth consecutive quarter. The expansion of same-day delivery options, new click-and-collect locations, and deeper integration with delivery platforms like DoorDash proved pivotal during the winter storms early in the quarter, which triggered a spike in demand for online grocery services.
This omnichannel flexibility enabled Ahold Delhaize USA to maintain strong customer engagement, even as adverse weather conditions impacted traditional in-store foot traffic. Executives highlighted the role of their digital platforms in driving “record penetration levels” during these high-demand periods.
Price Investments and Brand Performance
Strategic price cuts remained a cornerstone of Ahold Delhaize USA’s “Growing Together” strategy. Giant Food expanded its "Fresh Low Prices" initiative, reducing prices on hundreds of own-brand items, while Stop & Shop rolled out value-focused campaigns across more than 40% of its stores.
Food Lion and Hannaford remained standout performers, with Food Lion posting its 50th consecutive quarter of comparable sales growth and Hannaford notching its 15th. These consistent performers helped buffer the financial impact of recent store closures within the Stop & Shop banner, which concluded in 2024.
However, these price investments contributed to a slight decline in operating margin. The U.S. underlying operating margin stood at 4.4% in Q1, down 0.3 percentage points from the previous year. Ahold Delhaize attributed the margin dip to its continued pricing strategy and the increased share of online and pharmacy sales, which typically carry lower margins.
Challenges and outlook
The closure of underperforming Stop & Shop locations and lower fuel sales slightly dampened topline growth. The company noted that the closures are expected to reduce full-year reported U.S. net sales by between $550 million and $575 million.
Despite these headwinds, Ahold Delhaize reiterated its full-year 2025 guidance. The company projects a group-wide underlying operating margin of around 4%, mid- to high-single-digit growth in underlying earnings per share, and free cash flow of at least €2.2 billion.
“As we move further into 2025, our U.S. brands are well positioned to meet evolving customer needs, expand digital capabilities, and strengthen competitive pricing,” Muller said. “Our long-term investments are paying off, and the U.S. continues to be a key engine of growth for Ahold Delhaize.”
