Ahold Delhaize On Course To Meet US Online Sales Growth Targets
Ahold Delhaize, which operates supermarkets in Europe and the United States, is on track to meet a 20% US online sales growth target this year as it opens automated grocery distribution points along the East Coast, its chief executive said on Wednesday.
Frans Muller, promoted to the top job last July, said in an interview that Ahold, which makes roughly two-thirds of its sales in the United States, plans to open several more of the automated hubs in 2019.
The comments came after Ahold said on Wednesday that group net consumer online sales rose 25% to €1.1 billion in the fourth quarter at constant exchange rates.
In the Netherlands, where it also operates the non-food Bol.com retailer, Ahold saw strong online sales growth of 28%. In the US, online sales rose 12% at constant exchange rates to €203 million in the three months through 31 December.
Overall, Ahold said its core earnings rose 9.5% in the fourth quarter, bolstered by strong online sales growth, meeting market expectations.
Muller has said the company hopes to make acquisitions to meet targets of 20% online US sales growth in 2019 and 30% in 2020.
"We are on track for 2019 to make our 20%. That's all planned for and I am excited about reaching 30%," Muller told Reuters. "I think the market is there."
Speaking about acquisitions, Muller said, "we see more opportunities in the US The market is consolidating. We have a strong base and strong brands along the East Coast."
In November, Ahold announced plans to roll out small, automated warehouses to increase order picking and cut delivery times, part of a revamp of its e-commerce business to help fight competitors like Kroger, Walmart and Amazon.
Muller said several new centres will be opened this year, with a higher number in 2020, but gave no specific number.
Ahold's underlying income increased to €691 million ($786 million) in the three months through 31 December, in line with forecasts. Ahold shares slipped 1.8% by 08:35 GMT.
Ahold, which operates the 'Stop & Shop' and 'Food Lion' chains in the United States, confirmed its 2019 target of €750 million in gross synergies from the merger with Delhaize.