- Good progress on six-pillar strategy to accelerate growth
- Multiple initiatives underway in the United States and Europe to drive identical sales growth, deliver multi-channel offering to customers, and expand our geographic reach
- Existing cost savings program increased to €600 million, to fuel further investments in a better offering and value for customers
Philadelphia, PA, United States of America, November 28, 2012 - Today and tomorrow, Ahold's senior management is presenting an update of its strategy to analysts and investors. The meeting begins at 6pm EST, and is being webcast live on ahold.com. A detailed program of the event is set out below.
Ahold's CEO, Dick Boer, said: "We are very pleased with the progress we are making on our strategy, for Ahold to remain successful and at the forefront of the food retail industry.
"In the next two days, we are providing an update on the progress we have made. We will present a number of initiatives for the near future, including acceleration of our multi-channel offering and expansion of our online and offline reach. We are also announcing an increase to our existing cost savings program from €350 million to €600 million, to fuel further investments in creating a better offering and value for customers.
"We continue to improve our competitiveness, drive sales, gain market share and control costs. By performing in the top quartile of our peers in food retail, we want to continue to provide attractive, sustainable returns for shareholders," Boer said.
Progress on Ahold's six pillar strategy for growth
Ahold has taken many steps to enable and create growth since the previous Capital Markets Day in the Netherlands 12 months ago. We expanded our geographic reach with store openings and acquisitions in existing and adjacent markets in the United States and Europe. Our online retail operations continued to achieve double-digit sales growth. We have introduced pick-up points in our major markets to allow customers to order online and collect their groceries at designated locations, and we have also created bol.com pick-up points in 59 Albert Heijn stores.
Meanwhile, we continue to refresh and update our existing store base. We have remodeled 50 Giant Landover and Stop & Shop stores and converted nine Albert Compact Hyper stores in the Czech Republic. We are also redesigning the Albert Heijn to go convenience format in the Netherlands.
Going forward, we will:
- Convert the majority of 82 C1000 / Jumbo stores to Albert Heijn in 2013
- Double our Albert Heijn store base in Belgium in 2013, where we are on track to operate a minimum of 50 supermarkets by 2016
- Further invest in our online offering to boost growth at Peapod, albert.nl and bol.com, expanding our home delivery service with increased assortment and an improved proposition
- Significantly increase test pick-up points in our major markets in 2013 and expand the option for customers to pick up their bol.com products in almost all Albert Heijn stores
- Increase our existing cost savings program from €350 million to €600 million by including sourcing and promotional expenditures, to fuel investments in a better offering and value for customers
Capital Markets Days agenda
The Capital Markets Days begin at 6pm EST in Philadelphia, PA, United States. The meeting is being webcast live on ahold.com and is available for replay afterwards. The presentations can also be downloaded from ahold.com. The schedule is: (all times EST):
Wednesday, November 28, 2012
- 18.00 Reshaping retail - Dick Boer, CEO
- 18.35 Financial update - Jeff Carr, CFO
- 19.05 Q&A
- 19.30 Closing - Dick Boer
Thursday, November 29, 2012
- 7.30 Opening - Dick Boer
- 7.35 Growing our business in Europe - Sander van der Laan (COO, Ahold Europe)
- 8.00 Ahold USA: strong position, focused on execution - Carl Schlicker (COO, Ahold USA)
- 8.40 Customer loyalty @ Ahold USA - Eric Keptner (EVP Marketing, Ahold USA)
- 9.00 Local execution and driving efficiencies - Bhavdeep Singh (EVP Operations, Ahold USA)
- 9.20 Break
- 9.40 Our global online strategy - James McCann (Chief Commercial & Development Officer), Andrew Parkinson (CEO, Peapod)
- 10.10 Q&A
- 10.50 Closing - Dick Boer
Ahold Press Office: +31 88 659 5343
Ahold Investor Relations: +31 88 659 5213
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This press release includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those included in such statements. These forward-looking statements include, but are not limited to, statements as to Ahold's growth strategy, cost savings, competitiveness, sales, market share, conversion of C1000 and Jumbo stores into Albert Heijn stores, opening new stores, investment in online offering and pick-up points. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ahold's ability to control or estimate precisely, such as the effect of general economic or political conditions, fluctuations in exchange rates or interest rates, increases or changes in competition, Ahold's ability to implement and complete successfully its plans and strategies, the benefits from and resources generated by Ahold's plans and strategies being less than or different from those anticipated, changes in Ahold's liquidity needs, the actions of competitors and third parties and other factors discussed in Ahold's public filings and other disclosures. The readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Koninklijke Ahold N.V. does not assume any obligation to update any public information or forward-looking statements in this press release to reflect subsequent events or circumstances, except as may be required by applicable laws. Outside the Netherlands, Koninklijke Ahold N.V., being its registered name, presents itself under the name of "Royal Ahold" or simply "Ahold".
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Source: Ahold via Thomson Reuters ONE