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ZAANDAM, the Netherlands — Ahold Delhaize reported net sales of €22.3 billion ($24.36 billion) for its fiscal second quarter, an increase of 0.7% at constant exchange rates and 1.2% at actual exchange rates. Comparable sales excluding gasoline increased by 0.6% for the Group, with a decrease of 0.4% in the U.S. and an increase of 2.4% in Europe.
"I am pleased to report a second-quarter performance that places us well on track to achieve our strategic aspirations and financial goals for 2024," Ahold Delhaize president and CEO Frans Muller said in a statement. "It has been a busy quarter, as we launched our refreshed company strategy, 'Growing Together,' internally and externally. As I said in May, we have a strong foundation, and we are ready to set the pace for change in our industry. We believe we have a very compelling set of ambitions, which, on delivery, will yield strong growth for our company and our stakeholders."
Muller pointed to the company's omnichannel ecosystems as a major competitive advantage and source of market share gains.
"In Q2, online sales were again fueled by double-digit growth in online grocery in both Europe and the U.S., excluding the divestment of FreshDirect," he said. "Here we are seeing both new customer growth and strong customer retention. At the same time, we are making strides in ecommerce profitability. In the U.S., the shift in demand to more profitable channels and our initiatives to optimize the store-first fulfillment model are paying off."
Muller acknowledged that net sales in the United States declined by 1.5% at constant rates, while comparable sales growth excluding gasoline declined by 0.4%, negatively impacted by 1.2 percentage points from calendar shifts.
"Excluding the impacts of calendar shifts and the divestment of FreshDirect, we saw a sequential improvement in growth rates during the quarter, as volume trends continued on a positive trajectory," Muller said. "By putting increased attention on the value of own-brand products while making it easier to earn loyalty rewards, the U.S. brands are laser-focused on investing in our winning customer value proposition. One example of this is the 'Compare & Save’ campaigns at Stop & Shop and Giant Food, which are trending favorably with higher sales, in both dollars and units.
“During our Strategy Day in May, we communicated that we would take decisive and deliberate actions to ensure a stable and thriving future for Stop & Shop. We’re moving forward confidently in three key areas. First, delighting customers through improvements to the customer value proposition and differentiation. Second, improving the cost structure. And third, optimizing the store portfolio."
Muller said Stop & Shop will close 32 underperforming stores by year end, which should impact sales by between $100 and $125 million this year and between $550 and $575 million in 2025.
"By creating a healthy store base, the team at Stop & Shop will be able to focus attention on the markets that are most important, including those where the brand has strong density, holds a strong market position or has stores that are performing well," he said.
