Omnichannel strategy works! Ahold Delhaize online sales increased by more than 100%

Global food retailer Ahold Delhaize ended fiscal 2020 with double-digit net sales and comparable sales growth for its U.S. supermarket business, driven in part by a more than 100% increase in online sales .

Ahold Delhaize USA net sales rose 18.7% to $13.62 billion in the 14-week fourth quarter ended Jan. 3, from $13.47 billion a year earlier, the company said Wednesday . Comparable store sales excluding gasoline rose 11.2% (10.2% including fuel sales). Online sales jumped 128.5% to $755 million from $330 million a year ago .

Net sales in the U.S. totaled $51.84 billion in the past 53 weeks of fiscal 2020, up 15.6% from $44.84 billion in the 52 weeks of fiscal 2019. Online sales increased 105.1% to $2.26 billion in fiscal 2020 from $1.1 billion in 2019.

Frans Muller, President and CEO of Ahold Delhaize , said: “We are pleased with our underlying fourth quarter results in the United States and Europe, where standardized retail sales excluding gas grew strongly. Our leading local omnichannel platform generated nearly 130% net consumer online sales growth in the United States and nearly 75% in Europe in the quarter, measured at constant exchange rates .

Ahold Delhaize USA, whose supermarket brands include Stop & Shop, Giant Food, Giant/Martin's, Food Lion and Hannaford, increased market share in fiscal 2020, solidifying its positions as the No. 1 and No. 2 share leader in the market segment .

Ahold Delhaize recorded 105% growth in U.S. online sales in 2020, exceeding its goal of achieving more than 90% growth for the year. Ahold Delhaize USA plans to expand its hits to approximately 1,400 websites by the end of fiscal 2021 and increase online capacity by another 30%, following a 70% increase in 2020.

“With online now accounting for around 10% of our sales, we are well positioned for further growth, which will allow us to significantly increase our capacity in 2020 and 2021,” Mueller said of Ahold Delhaize’s global business, adding: “With our investments in increased capacity and continued innovation, we expect global group net online sales to grow by more than 30% in 2021, and we expect the U.S. to exceed this growth rate with more than 60% growth. ”

Globally, Zaandam, Netherlands-based Ahold Delhaize reported fourth-quarter sales of €19.6 billion ($16.44 billion), up 12.8% (18% at constant exchange rates) from €17.38 billion ($15.71 billion) a year earlier. Fiscal 2020 sales rose 12.8% (14.2% at constant exchange rates) to €74.74 billion ($65.55 billion) from €66.26 billion ($59.2 billion).

Ahold Delhaize reported a fourth quarter net loss of 9 million euros, or 0.01 euros per diluted share (continuing operations), compared with net income of 544 million euros, or 0.50 euros per diluted share (continuing operations) in the same period last year. Net income for the full year 2020 totaled 1.4 billion euros, or 1.30 euros per diluted share (continuing operations), compared with 1.77 billion euros, or 1.59 euros per diluted share, in 2019.

At the end of fiscal 2020, Ahold Delhaize had 7,137 stores in the United States , the Netherlands , Belgium and Central and Southeastern Europe , compared with 6,967 a year ago, with net earnings of 170. Ahold Delhaize USA ended the year with a net profit of 1,970 stores, three fewer than in 2019, including five stores opened or acquired and eight closed or sold.

Omnichannel strategy

Ahold Delhaize

Online Sales

North America