Belgian-Dutch retail group Ahold Delhaize has issued a profit warning: due to the long strike at its American subsidiary Stop & Shop, operational profit will be lower in 2019.
Eleven days of strike
Two weeks ago, a strike started at Stop & Shop as over 30,000 employees downed tools for eleven days after the chain’s management announced cost cutting measures. These included a rise in health insurance costs and the cancellation of extra pay for work on Sundays. 246 of the 415 stayed closed completely during the strike.
After the strike, Ahold Delhaize sizes up its wounds: its operational profit margin will be lower in 2019 than the 4.1 % the retailer reached in 2018. Ahold Delhaize had predicted a 7 % to 9 % growth in profit per share, but that would now be only 1 % to 3 %. The profit of Stop & Shop itself would decrease by between 90 and 110 million dollars (just under 100 million euros). The retailer sticks to its other predictions, Belgian business newspaper De Tijd writes.
