Acquisitions and new stores add to an already impressive portfolio and sales hike
Ahold's end goals reflect present pitch
Dutch company Ahold expects its sales and operating earnings in 2000 to rise in all trade areas, reflecting healthy growth in the business and new acquisitions. The company also expects earnings growth will be strongly higher than in 1999. Ahold is the world's sixth largest supermarket chain in sales terms and generates more than half its turnover in the US.
The acquisition of US Foodservice last month has provided another vital key to the company's expansion plans.
Ahold president and ceo Cees van der Hoeven said: "US Foodservice elevates Ahold to the position of national food provider in the US with distribution, sales offices and marketing operations, including e-commerce and internet shopping across the country.
"It makes Ahold USA a true multi-channel food company with a national presence."
This year, it plans to open 50 supermarkets and remodel a further 200 stores in the US, boosting its portfolio to about 1,100. Its investment spend will total $1.1bn.
In Europe, Ahold's 50-50 venture with the ICA group, Scandinavia's leading food retailer, was given the go-ahead by the European Commission in Brussels this week.
It expects to open about 170 new stores this year and remodel a further 400, bringing its portfolio up to 2,600, excluding the ICA store portfolio of 3,100 stores. Total investment will be around euro 710m.
In Latin America it will open 30 large new stores and remodel another 50, bringing the total to 557 stores.
In Asia, Ahold expects around 100 Tops stores to be in operation, increasing from 80 stores at the end of 1999.
Van der Hoeven spelt out his vision of the future for the company.
"Ahold is preparing to become a multi-channel food provider, serving millions of customers at any one time, not just in the home but in locations we can hardly envision now; fuel stations, restaurants, sports stadiums, colleges, hospitals, religious centres anywhere people gather on a regular basis," he said.
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