Ahold, the Dutch retailer, today (6 June) posted rising quarterly profits but saw the weak dollar hit sales.
Go deeper with GlobalData
The company booked a 7% rise in operating income to EUR336m (US$524m) for the first three months of the year.
However, Ahold, which runs US chains including Stop & Shop and Giant Food, saw net sales dip 1.3% to EUR7.5bn. At constant exchange rates, sales were up 6.8%.
CEO John Rishton said Ahold was “pleased” with the numbers. “The overall first quarter results…reflect continued good progress with our strategy for profitable growth,” he said.
In the US, Ahold continued with its strategy of lowering prices and boosting the number of products on sale in its stores, although the scheme weighed on margins. Identical-store sales rose 1.2% at Ahold’s Stop & Shop outlets but dipped 1.5% at its Giant-Landover business.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRishton said he expects “improvements” from Ahold’s US business later this year. “We are confident that the actions we are taking to bring value to our customers are the right ones,” he said.
In Europe, Ahold saw identical-store sales from Albert Heijn, its domestic chain, jump 11.3%.
In the Czech Republic and Slovakia, same-store sales rose 18% and the company’s local unit saw losses narrow from EUR5m last year to EUR1m.
