How Does Koninklijke Ahold Delhaize Company Work?

In the U.S., the company operated 2,017 stores at the end of 2024 under well-known banners such as Food Lion (1,109 stores), Stop & Shop (362 stores), Giant/Martin's (193 stores), Hannaford (189 stores), and Giant Food (164 stores).

In Europe, as of late 2024, the company operated 5,748 stores, including Albert Heijn (1,276 in the Netherlands and Belgium), Mega Image (985 in Romania), and Delhaize (818 in Belgium and Luxembourg).

Ahold Delhaize's omnichannel infrastructure and digital loyalty programs are yielding strong results, with online sales increasing by 13.7% in Q1 2025 at constant exchange rates. This growth is driven by double-digit growth in online grocery in both regions and accelerating sales at its Dutch e-commerce platform.

The company is transitioning towards a 'store-first' network strategy to meet rising demand for same-day delivery, expanding click-and-collect options and forming partnerships with delivery services. Albert Heijn has also extended its use of smart algorithms for more efficient delivery routes.

The company has proactively addressed market dynamics, including strategic price investments in the U.S. to foster growth, even with a short-term impact on operating margins in Q1 2025. In Europe, the completion of the Belgium Future Plan in 2024 saw all 128 company-owned stores transition to an affiliated model, yielding positive early results with double-digit growth in converted locations.

Store portfolio optimization remains a key focus, with the completion of Stop & Shop store closures in 2024 expected to reduce reported net sales by an estimated $550 million to $575 million in 2025. This move aims to enhance the cost structure and improve overall efficiency.

Ahold Delhaize's competitive edge is built on a blend of strong brand equity, deep local market understanding, and the advantages of a global enterprise. This allows for tailored local offerings while leveraging shared best practices for efficiency.

Significant investments in online platforms and digital loyalty programs bolster its robust omnichannel capabilities, driving increased customer engagement and spending. The company's commitment to sustainability is also a key differentiator, with a 36% reduction in greenhouse gas emissions in its own operations since 2018.

Koninklijke Ahold Delhaize Company is recognized as one of the world's largest food retail groups. In the U.S., it leads as the top grocer on the East Coast, with 96% of its net sales generated in markets where it holds a #1 or #2 position.

The company faces risks from geopolitical and macroeconomic uncertainty, including inflation and supply chain disruptions. Specific challenges include price investments in the U.S. impacting margins and the cessation of tobacco sales in the Netherlands and Belgium, projected to reduce comparable sales in Europe by approximately 1.0% in 2025.

The 'Growing Together' strategy, launched in May 2024, guides the company's future, aiming to accelerate growth and earnings momentum in 2025. Key initiatives focus on enhancing omnichannel capabilities and customer loyalty.

For 2025, Ahold Delhaize anticipates an underlying operating margin of around 4% and mid-to-high single-digit underlying EPS growth. Free cash flow is projected at a minimum of €2.2 billion, with gross capital expenditures around €2.7 billion.