Second quarter sales at Ahold Delhaize were up more than 6% as revenue growth at the company’s U.S.-based supermarkets were cited as the main driver of the increase.
Company wide sales for the quarter were €21.4 billion ($22.09 billion), up 6.4% year-over-year. Second quarter sales in the U.S. were up 7.7% to $14 billion. Comparable sales excluding gasoline increased 6.4%. Notably, online sales in the U.S. were $1.057 billion, up 16% from the second quarter in 2021.
Frans Muller, president and CEO of Ahold Delhaize, said the value proposition offered by each of the company’s brands are reflected in the increased market share in a majority of its markets.
"This is particularly visible in the U.S., where the consistent and robust performance of our U.S. brands continued,” he said.
He noted that Food Lion continues to perform strongly, achieving its 39th consecutive quarter of growth and double-digit comparable sales growth. Additionally, Stop & Shop has taken the next steps in its remodeling program with the announcement of a $140 million investment across its New York City stores over the next two years.
“This targeted investment aims to improve the shopping experience for local customers by adding thousands of new products to the assortment that reflect the diversity of the neighborhoods and communities Stop & Shop serves,” Muller said.
With rising prices impacting consumers in the U.S. and Europe, he said Ahold Delhaize is focused on supporting customers and helping them manage their spending.
“Our brands do this by ensuring access to affordable, healthy food options, expanding their high-quality own brand assortments, introducing more entry-priced product solutions, and ensuring our highly tailored omnichannel loyalty programs offer competitive and attractive solutions across all customer touchpoints,” he said. “Our cost reduction programs also help Ahold Delhaize's local brands absorb cost increases relating to energy, transport and labor, enabling us to keep prices as low as possible.
Highlighting this effort in the U.S., Food Lion introduced a rotating daily Meal Deal that is said to feed a family of four for $12 and a weekly Deli Deal on meat and cheese. Also, Hannaford redesigned its Time Savers program to increase visibility on the assortment of affordable ready-meals, aligning directly with their ‘Fresh & Convenient’ strategy.