U.S. Growth Boosts Q4 Ahold Delhaize Results

Ahold Delhaize closed out a challenging 2022 on a positive note as the company reported solid gains in the fourth quarter driven in part by strong comparable store sales growth in the United States.

Net sales in Q4 were €23.359 billion ($24.93 billion), an increase of 8.1% in Q4 and 6.9% at constant exchange rates and up 15.9% in Q4 and 15.1% at actual exchange rates. Net sales in the U.S. were €14.782 billion ($15.78 billion), up 9.2% from the comparable quarter the previous year.

Fourth quarter comparable sales excluding gas increased by 9.3% in the U.S. and 5.7% in Europe. Company officials said the sales growth was underpinned by the introduction of more entry-priced products, expanded high-quality own-brand assortments and further rollout of personalized value through our digital omnichannel loyalty programs. 

For the full year, company-wide sales increased 6.9% to €86.984 billion ($92.84 billion), with U.S. sales up 7.9% to €55.218 billion ($58.94 billion).

Frans Muller, president and CEO of Ahold Delhaize, said fourth quarter growth in the U.S. was driven by strong holiday season activations. 

“The U.S. brands' sales from loyalty programs and online orders reached all-time highs,” he said. “This has been a trend we have seen building throughout the year, as our consistent investment in growing these capabilities continues to pay off. Our brands' customer relationship management campaigns are a good example, now reaching around 30 million households and delivering more than 10 billion personalized offers annually.”

He added that Ahold Delhaize is also encouraged by the progress at Stop & Shop, where the brand's remodeled New York City stores are delivering double-digit sales growth and exceeding expectations. 

“We plan to remodel a further eight stores in New York City in Q1 2023, and roll out key learnings to 40 other stores in the fleet throughout the year,” he said.

During an investor conference call, Muller acknowledged the impact of inflation on shoppers as more consumers shifted to purchasing private brand products. He reported a 2% increase in both the U.S. and Europe in what he termed “a big swing” in “private label participation” by consumers. 

“The good news is that we have a strong private label (assortments) in the U.S. and in Europe, whereby customers can make in-store decisions,” he said. “So in store, they can trade into our private label selections.”