Ahold first quarter sales fall
Tough going for supermarket group
Sales problems in its continuing operations contributed to a first quarter sales decline at supermarket giant Ahold.
The Netherlands-based retailer said that its Albert Heijn chain in Holland saw like-for-like sales growth of just 0.1 per cent across the quarter, with an increase in transactions offset by lower basket sizes.
In Europe as a whole, Ahold sales declined by 0.9 per cent to €3.7bn, with sales growth excluding exchange rates up by 0.5 per cent. Ahold said sales growth in Central Europe was largely wiped out by unfavourable exchange rates, while sales in Spain fell as a result of intensified competition plus a lower store count.
In the wake of its financial problems, Ahold has been divesting non-core stores, including Asian and South American businesses, to focus on its core operations. The sluggish sales in Europe show the scale of the task it faces.
The group’s total first quarter were €5.4bn, a decline of 11.3 per cent compared to last year. The figures were affected by unfavourable exchange rates and disposals. Taking this into account sales grew by 1.3 per cent.
In the USA, sales decreased by 1.2 per cent to $8.2bn. Ahold said: “Our retail operations in the United States have seen ongoing challenging market circumstances. Both Stop & Shop and Giant-Carlisle showed a resilient performance.”
