Ahold core sales hit by crisis
New broom needed at retail giant
September 11 2003
Ahold has seen a fall in sales at its core Dutch supermarket chain Albert Heijn as customers desert the retailer in the wake of the financial controversy whuich has engulfed the business.
Ahold has denied a report in a Dutch newspaper saying that 15 per cent of regular Albert Heijn customers were shopping elsewhere, but conceded that there had been fall in sales since the appointment of new chief executive Anders Moberg.
Former Ikea boss Moberg had his appointment ratified at a meeting last week, but only after shareholders expressed concern at the size of his remuneration package. The €6m-plus package will make him one of the highest paid CEOs in the Netherlands.
The Dutch media has widely covered the controversy, and Dutch Minister of Economic Affairs Laurens-Jan Brinkhorst criticised the package in a TV interview at the weekend.
Along with a fall in sales in the flagship chain, Albert Heijn staff have also been confonted by angry customers in stores.
Meanwhile, the Financial Times has reported that the supervisory board of Ahold may be forced to resign in order to restore investor confidence. A source close to the company said that Moberg and his new executive team will have trouble restoring the company’s standing while the board is still linked to the previous regime.
Moberg is said to support the view that the supervisory board should step down.
Ahold’s troubles began when the company was forced to restate several years of results after finding an accounting black hole at its US Foodservice unit. Formal investigations were launched by both the Dutch and US authorities.
