Ahold home market hit by problems
Third quarter dip in core Dutch business
October 28 2003
Supermarket giant Ahold saw a sales decline of 7.1 per cent in the third quarter as consumers deserted its core Dutch operation.
Total sales of €13bn reflected a weak global economy and fierce competition, said the company. However, the quarter saw lower sales at the Dutch Albert Heijn supermarket chain, where Ahold has conceded there as been a consumer backlash in the wake of the financial crisis which has hit the company this year.
Elsewhere in Europe, sales were better at the Schuitema chain in Central Europe and Spain. Total European sales were up 0.3 per cent €3bn.
In the USA, retail sales increased by 3.3 per cent to $6.2bn. In the South America operations which are on the market, sales fell 12.8 per cent following the sale of Santa Isabel Chile in July.
Ahold said full-year income would be hit by continued pressure on margins, mainly at the US Foodservice operation.
Professional fees for lawyers and accountants in relation to the financial problems will amount to more than €100m this year.
