Ahold Delhaize wants to save the customer money, so much so it is a centerpiece in the retailer’s strategy.
For the fourth quarter, the grocer’s Save for Our Customers program created over 1.25 billion Euros in cost savings, which is 29% more than what was generated last year.
However, the Q4 financial results were mixed for Ahold Delhaize, which reported overall year over year increases in net sales (1.9%), comparable sales excluding gasoline (1.8%), online sales (3.6%), and net consumer online sales (2.6%). The news was a little different in the U.S., where stores recorded year-over-year declines in all four areas (down 1.5% in net sales and 1.9% in online sales and net consumer online sales). Comparable sales declined by 1% vs. Q4 2022.
“[It was] in line with our expectations as inflation [in the U.S.] moderated further and Supplemental Nutrition Assistance Program (SNAP) headwinds remained,” said Frans Muller, president and CEO of Ahold Delhaize. “Excluding one-offs, the U.S. underlying operating margin was consistent with the prior year, highlighting our strong focus on managing costs to match top-line deflation trends.
“In addition, the divestment of FreshDirect was finalized in the quarter, which contributed a modest uplift to margin. For the coming quarters, this margin upside will help fund investments into our U.S. brands' store portfolio and customer value propositions.”
The divestment of Fresh Direct will reduce the amount of 2024 reported net sales and online sales in the U.S. by $600 million.
For fiscal year 2023 overall Ahold Delhaize reported year-over-year increases in net sales (3.8%), comparable sales growth excluding gasoline (3.9%), online sales (6.1%), and net consumer online sales (5.9%). In the U.S., net sales were up 1.8% compared to FY 2022, while comparable sales growth excluding gasoline sales rose 2.3%, and online sales and net consumer online sales both increased 5.1%.
