In the United
States, Ahold operates six supermarket chains--BI-LO,
Giant Food Stores, Finast, Edwards, Mayfair and Tops--running
over 650 stores. With the latest acquisition of Stop &
Shop earlier this year, Ahold has moved into top five
US supermarket organizations.
Ahold's six US chains share
certain facilities: The American Sales Company, a distribution
center in Lancaster, NY, which supplies all of the store
chains; and Ahold Information Services, an information
processing center based at BI-LO's headquarters, which
handles administrative processing for all those companies
(Garry, M., 1996).
1977 Bi-LoMauldin, SC203 $1.9
1981 GiantCarlisle, PA61 $1.3 billion
1988 FinastMaple Heights, OH $43900
1991 TopsBuffalo, NY $1681.6 billion
1995 MayfairNew Jersey, NY $28250
1996 Stop & Shop MA, CO, RI
The Tops Market chain was acquired by Royal Ahold
in 1991. It is the dominant food retailer in Buffalo,
NY, serving a population of some three million people
in western and central New York and northwest Pennsylvania.
The stores that comprise tops Markets retail operations
include five categories: Tops International Super Centers,
tops Super Centers, tops Food Markets, Vix Deep Discount
and Wilson Farms Neighborhood convenience stores.
Finast's store network was
part of First National Supermarkets, which acquired by
Ahold in 1988. At the time, Finast in Ohio operates as
the Ohio division of First National, while the Eastern
division operated Edwards and Finast stores. Years later,
the two divisions were split into separate operating companies
under the Ahold USA banner.
The chain serves customers
in the greater Cleveland and Northeast Ohio markets. A
well targeted low-price, low-cost strategy made Finast
the area's major food retailer.
Edwards Super Food Stores was evolved from First
National in 1993. The stores are located in New Jersey
and are serving an affluent, densely populated market
in the Northeast. In 1996, the 28 Mayfair stores will
Giant was acquired by Ahold in 1981, operating about
70 supermarkets in Pennsylvania, Maryland, Virginia and
West Virginia. The store chain ranks as top-performing
supermarkets and its sales are among the highest in its
markets. Also, the company is on a major expansion phase.
BI-LO, built on a commitment to low prices, high
quality, and excellent service, is a market leader in
southeastern United States. By mid-1995, Bi-Lo operated
over 260 supermarkets and continued upgrading and remodeling
stores. Integration of Red Food supermarkets into BI-LO's
store chain took longer than planned because of restructuring
the computer systems and rebuilding consumer loyalty.
six store chains with a total of some 1,600 outlets: Albert
Heijn (supermarkets), Gall & Gall (liquor stores),
Etos (health and beauty care stores), Jamin (confectionery
stores), De Tuinen (nature products) and Ter Huurne (stores
on the Dutch-German border). In addition, Ahold holds
a 73% interest in Schuitema, a wholesale supplier of independent
grocers. An institutional food supply company (GVA) and
the production companies Marvelo, Meester and Nistria
also are part of the Dutch operations.
The total number of outlets in The
Netherlands (excluding Schuitema) increased by 24 to 1,572,
including 477 franchise stores. Total sales area grew
by 2.8% to 7,664,000 sq. Ft.
Albert Heijn 8,1457,9152.9470
Albert Heijn (F)*1,6841,5657.7169
Etos 236 2188.1119
Etos (F)* 144 8568.9149
Gall & Gall 368 365 0.9330
Gall & Gall (F)* 70 4941.2 96
Others 360 406239
*(F): Franchising **(NLG) 1.6025 per USD
The "Today for Tomorrow" distribution
system, where store orders are filled within eighteen
hours, is now operative throughout the country. Heightened
efficiency led to elimination of some positions, but an
extensive retraining and outplacement effort made it possible
to avoid involuntary layoffs.
Ministores and a large supermarket
in Beek further expanded the range of store formats within
the Albert Heijn family. In early 1996, Albert Heijn and
Shell began a joint trial offering a special assortment
in several Shell station shops.
By the end of 1995, Ahold
Specialty Stores operated 933 outlets, including 308 franchise
stores. The Gall & Gall liquor store chain increases
its market share significantly from 21.6% to 23.4% in
a shrinking market. The strong performance was due to
improvements in marketing, assortment and store organization.
Sales of De Tuinen natural product
and Etos health/beauty care stores also had an exceptional
growth of improved assortment.
Through its Jer'onimo Martins
Retail (JMR) joint venture in Portugal, Ahold is co-owner
of the country's leading supermarket chain, Pingo Doce,
and the Feira Nova hypermarket chain. In the Czech Republic,
Ahold owns the Mana supermarket chain, the Sesam discount
chain, and Euronova cash & carry centers. Through
a joint venture in Poland, Ahold has ten cash & carry
centers, two Sesam discount stores and a share in eight
supermarkets. In Belgium, Ahold owns a food production
company, and in Spain it is half-owner of the Luis Paez
In particular, Portuguese activities
contributed significantly to this growth. In the Czech
Republic, an important acquisition more than doubled the
number of stores. The total number of Ahold stores outside
of The Netherlands climbed by 74 to 212. Their total sales
are increased 29.1% to 1,995,000 sq. Ft.
Sales GrowthLocationsSales area
Pngo Doce (P)10.61031,020
Feira Nova (P)39.6 8 465
Mana (Z)60.2 69 376
Other formats 32
Jero'nimo Martins Retail (JMR), Ahold's joint venture
in Portugal (51% Jero'nimo Martins, 49% Ahold), achieved
sales of NLG 1.7 billion. Pingo Doce has positioned itself
as the country's leading food expert, and its private
label line has made notable gains.
Largely located on the outskirts of major metropolitan
areas, attract customers from miles around with low priced
food and extensive non-food assortments.
With smaller reach, are primarily located in large
cities and in smaller urban areas and successfully offer
a broad food assortment in a full-service environment.
Total sales grew to NLG 222 million, a 99.0% increase
in local currency. Euronova acquired 52 Ceska General
Food stores. The total number of stores in the Czech Republic
thereby rose to 96. The combined scope of Mana and Sesam
has reached the point where new benefits in distribution
and purchasing can be achieved.
Ahold and the German retailer Allkauf has begun
a 50-50 joint venture developing various store formats
in Poland. Additionally, the joint venture acquired a
51 % interest in Mitex Trade, an operator of six large
and two small supermarkets. Most activity is currently
concentrated in southern Poland, close to Ahold's activities
in the Czech Republic.
The synergy marketing alliance
linking twelve leading European food retailers including
Ahold, Associated Marketing Services (AMS), achieved combined
benefits through extensive programs with suppliers. One
of the most important results was introduction of the
Euroshopper product line.
Cooperation among the European Retail
Alliance (ERA), consisting of Ahold, the British food
retailer Argyll and the French food retailer Casino, was
for the most part confined to information exchanges in
1995. In February 1996, the partners ended their cross
shareholdings in each other.
Ahold begins its development
in Southeast Asia by signing a cooperative agreement in
Indonesia, and opening an Ahold Asia Pacific office in
Singapore. In March 1996, joint venture contracts were
signed in Malaysia and Singapore.
The company has announced its intention
to expand its operations into the Far East, starting with
Indonesia and Malaysia, together with local partners.
In September 1996, the first store in Indonesia will be
opened. Ahold is also looking to new markets of China
With existing purchases from supermarkets
running at a fraction of the Western world (penetration
only 2-3%, against 65-80% in Western countries), the growth
possibilities of Far East area are very positive. Ahold
believes it is possible that within ten years, some 10%
of total sales will derive from the Far East.