Last Refreshed: 6/24/2024 7:39:01 AM
Brand Story

Ahold Delhaize's Q2 2023 key business highlights

Zaandam, the Netherlands, August 9, 2023 – Today, Ahold Delhaize published its second quarter results for 2023. As we continued to see inflated prices across the past months due to higher energy, transport and labor costs, our brands were fast to respond. They proved to be agile and adaptable to meeting customers' needs, demonstrating our strong culture of care that we deliver to communities.  Our brands also managed to keep shelf prices as low as possible and implemented personalized offers through loyalty programs. And with our €1 billion Save for Our Customers cost savings program, we continue to support customers during these dynamic times. Although we have begun to see signs of inflation surpassing its peak, our brands are reflecting this in product prices where they can – particularly in healthy and fresh items.  

CEO Frans Muller comments, “Support for communities remains central in our approach, as our great local brands expand the Price Favorites assortment in Europe and work behind the scenes to harmonize our own brand assortment in the United States. Teams are working hard to deliver affordable healthy food options to customers and create value through loyalty and personalization programs and bulk item promotions.” 

Throughout our second quarter, we continued to focus on our key priorities within our Leading Together strategy to move forward. 

Customer priority  

Ahold Delhaize is continuously improving its omnichannel customer experience to allow our great local brands' customers to shop whenever and wherever they want. For example, Peapod Digital Labs (PDL) migrated Stop & Shop and Food Lion from a web-based app to a fully native app that provides a more intuitive and seamless customer experience. PDL already rolled out its native mobile apps to The GIANT Company and Giant Food in our first quarter of 2023, and Hannaford will come next in 2024.  

Additionally, in our second quarter Stop & Shop remodeled 12 of its stores, including three in New York City, that focus on enhancing multicultural assortments, while Hannaford launched Flybuy to improve the Hannaford To Go customer experience. Giant Food also reported that over 500,000 own-brand redemptions were made with its Flexible Rewards’ value program on eggs, milk and other staples. And in Europe, our brands now have 6,500 own-brand Price Favorite items and aim to reach 10,500 in the short term.  

Last Refreshed: 6/24/2024 7:39:01 AM
Operational priority 

By driving efficiency and innovation throughout our brands’ supply chain and fulfilment, we are scaling knowledge and technology. In our second quarter for 2023, Maxi opened its first home shop center, the first warehouse for online food distribution in Serbia, while Albert in Czech, expanded its online services coverage to two additional cities and now offers same day delivery.  

In the U.S., ADUSA Distribution added the Chester, New York distribution center to their self-distribution network which will serve Stop & Shop and Hannaford stores with an anticipated volume of 65 million cases of product each year. Food Lion also completed an additional 47 omnichannel store remodels in August. Back in Europe, Albert Heijn launched Gen AI Labs, its own AI start-up to improve customer experience and its associates’ work. 

Health & Sustainability priority

No matter how challenging our business can be, a key investment and progress area for Ahold Delhaize is our health and sustainability strategy. This quarter we’re proud to share that Ahold Delhaize's AA MSCI ESG rating was upgraded to AAA – indicating Ahold Delhaize is a leader in the industry in managing the most significant sustainability challenges and opportunities. Another significant sustainability achievement was bol.com’s B Corp Certification and Albert Heijn's announcement that it is on its way to earning B Corp certification.   

In the U.S. The GIANT Company awarded $300,000 in support of local projects that address food waste prevention, reduction and recovery and Stop & Shop introduced a single-use plastic bag elimination strategy and implemented a fee for paper bags to encourage the switch to reusable bags. 

Learn more about our Q2 financial results in the video below:  
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