Ahold describes Albert Heijn supermarket performance as 'weak'

Thursday 23 August 2012

Supermarket group Ahold on Thursday described the performance of Dutch market leader Albert Heijn as 'weak', blaming a failed football campaign and discounting.

Nevertheless, net sales in the Netherlands increased 5.3% on a year ago to €2.6bn, partly boosted by the acquisition of online retailer Bol.com. Market share at Albert Heijn was slightly ahead of last year, Ahold said.

However, 'margins at Albert Heijn were impacted by price investments, increased
promotional activity and an unsuccessful European football championship campaign,' Ahold said.

Second quarter turnover as a whole rose 3.9% to €7.7bn, adjusted for currency effects, while net profit was up 24.6% at €248m.

Excluding fuel, US same store sales increased 2.2% while operating margins rose slightly to 4.3%. Ahold earns most of its money in the US.

'We expect market conditions to remain difficult and are cautious about the potential impact of rising food commodity costs, particularly in the United States for the balance of the year,' CEO Dick Boer said in a statement.

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