Ahold's Price Positioning Pays Off, with Q2 Sales Better than Expected
Investments in price positioning and strong promotional activities drove better-than expected sales for Amsterdam-based Ahold, which operates Stop & Shop, Giant Carlisle, and Peapod through its U.S. subsidiary Ahold USA.
Net sales for the second quarter ending July 13 were EUR 5.8 billion (U.S. $9.02 billion), a decrease of 0.8 percent compared to last year, but a 7.3 percent increase at constant exchange rates.
Sales at Ahold's Stop & Shop/Giant-Landover companies increased 1.7 percent to $4 billion, and identical sales increased 2.2 percent at Stop & Shop (1 percent excluding gasoline sales) and decreased 1.5 percent at Giant-Landover (1.7 percent excluding gasoline sales) - primarily due to lower pharmacy sales, the grocer said.
The roll-out of the Value Improvement Program at the two chains remains on track, and has expanded beyond price repositioning to marketing and branding, according to Ahold.
Giant-Carlisle sales increased 11.5 percent to $1.1 billion, with identical store sales jumping 7 percent (4.1 percent excluding gasoline sales).
Ahold maintained its operating margin guidance for the year at 4.8 to 5.3 percent.
Net sales for the second quarter ending July 13 were EUR 5.8 billion (U.S. $9.02 billion), a decrease of 0.8 percent compared to last year, but a 7.3 percent increase at constant exchange rates.
Sales at Ahold's Stop & Shop/Giant-Landover companies increased 1.7 percent to $4 billion, and identical sales increased 2.2 percent at Stop & Shop (1 percent excluding gasoline sales) and decreased 1.5 percent at Giant-Landover (1.7 percent excluding gasoline sales) - primarily due to lower pharmacy sales, the grocer said.
The roll-out of the Value Improvement Program at the two chains remains on track, and has expanded beyond price repositioning to marketing and branding, according to Ahold.
Giant-Carlisle sales increased 11.5 percent to $1.1 billion, with identical store sales jumping 7 percent (4.1 percent excluding gasoline sales).
Ahold maintained its operating margin guidance for the year at 4.8 to 5.3 percent.