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Ahold Delhaize Debuts ‘Better Together’ Strategy

At a meeting for institutional investors and analysts in London, Netherlands-based Ahold Delhaize unveiled its Better Together strategy, a plan for fully leveraging the benefits of its international scale, together with local banners and associates. The strategy aims to drive profitable growth in supermarkets, e-commerce and smaller retail formats.

According to Ahold Delhaize CEO Dick Boer, Better Together “builds naturally on our combined strong performance as well as the strong foundations of the local brands in our group. Guided by this common compass, we will continue to improve our family of brands to be a better place to shop, a better place to work and a better neighbor, every day. We are meeting the needs of customers today and anticipating those of tomorrow, by providing more value, quality and convenience.”

The strategy has three key pillars: Saving for customers, investing in the customer proposition, and funding growth in key channels: supermarkets, e-commerce and smaller formats

Added Boer: “Our integration is on track, and we have a clear plan to deliver 500 million euros in net synergies in 2019. We are convinced more than ever that our merger is the right combination at the right time. … [W]e will continue to shape a stronger future for Ahold Delhaize, providing fuel for the brands to grow to the benefit of customers, associates, communities and shareholders.”

The company also gave an update on successful local programs, including Food Lion’s Easy, Fresh and Affordable store refresh initiative, which is slated to roll out to another 160 locations in 2017, bringing the total to 540, or 55 percent of total sales at the banner, and Ahold USA’s Heading Northeast strategy of investments in pricing, service and quality, which have led to gains in customer perception and sales volume.

Further, Ahold Delhaize confirmed its commitment to growing its e-commerce businesses, setting a goal to double net online consumer sales by 2020, and pledged to become a more sustainable company by prioritizing the areas of promoting healthier eating; reducing food waste; and creating healthy, inclusive workplaces.

To achieve these goals, all Ahold Delhaize brands will need to “set clear targets in the areas of product integrity, sourcing, tackling climate change, and taking care of our people,” the grocer said, promising to provide more details in next year.

Ahold and Delhaize Group merged in July 2016.

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