Belgian Delhaize supermarkets that have been transferred to independent owners are seeing comparable sales accelerate and market share stabilise, Ahold Delhaize CEO Frans Muller says.
Positive evolutions
The CEO commented positively on the evolution at Delhaize following the publication of parent company Ahold Delhaize’s annual results. 107 of Delhaize’s 128 Belgian supermarkets have already found a buyer. For several months now, they have been passing one by one into the hands of franchisees, and it is going according to plan: “We are starting to see encouraging results, with accelerating comparable store sales and stabilising market share at converted stores”, Muller said.
At group level, Ahold Delhaize performed in line with expectations after a strong fourth quarter in Europe, where sales rose 6.5 %. However, sales in the United States fell 1 % as the market is under pressure from declining inflation and the winding down of food aid to poorer citizens. Annual sales were 88.6 billion euros, with an underlying margin of 4.1 %: 4.7 % in the US, 3.3 % in Europe, partly due to increased labour costs. Online food sales rose 9.3 %, with accelerated growth at Albert Heijn. However, the latter’s sales are expected to suffer this year from the cessation of tobacco sales.
By 2024, profits will be at about the same level as last year, the retailer believes, with an underlying operating margin of at least 4 %. “And, as always, you can expect us to be laser focused on cost control and cash flow delivery.”
