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Ahold Delhaize Unveils ‘Better Together’ Strategy, Outlines Integration Plans

Published on Dec 7 2016 7:07 AM in Retail tagged: Featured Post / Belgium / Delhaize / Ahold / Netherlands / Barclays / Bernstein

Ahold Delhaize Unveils ‘Better Together’ Strategy, Outlines Integration Plans

Ahold Delhaize has outlined details of its integration strategy, ahead of a Capital Markets Day taking place in London today (7 December).

The ‘Better Together’ strategy is a plan for ‘fully capturing the benefits of international scale combining with great local brands and associate expertise’, the retailer said in a statement.

This includes plans to buy more strategically, waste less, invest in own brands and fresh and healthier products, and develop local, personal service in its stores.

"We are excited to share our Better Together strategy, which builds naturally on our combined strong performance as well as the strong foundations of the local brands in our group,” said Dick Boer, CEO of Ahold Delhaize.

“Guided by this common compass, we will continue to improve our family of brands to be a better place to shop, a better place to work, and a better neighbor, every day. We are meeting the needs of customers today and anticipating those of tomorrow, by providing more value, quality and convenience.

"Our integration is on track and we have a clear plan to deliver €500 million in net synergies in 2019. We are convinced more than ever that our merger is the right combination at the right time. Driven by our purpose "Together, we build great local brands, bringing fresh inspiration every day," we will continue to shape a stronger future for Ahold Delhaize, providing fuel for the brands to grow to the benefit of customers, associates, communities and shareholders."

The retailer also plans to double its e-commerce sales by the end of 2020.

Commenting on the announcement, Bruno Monteyne of Bernstein Research noted that management “reiterated that merger synergies on track with 'clear visibility' for €500m by FY19 and confirmed these would be 'in addition to the current profitability'. Management refers to the resilience of the underlying business. That does not imply forward guidance yet, but indicates that 'as of today, with all that is known already, underlying profitability is holding up’.”

Barclays European Food Retail Equity Research added that Ahold Delhaize is “talking very confidently of the rationale for the deal and indeed the cost savings that are being extracted from the standalone companies."

© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.

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