At Giant Food Stores, the average number of employees rose by 1,016 to 7,862. In full-
time equivalents, this represents a 14.5% rise to 4,913.
The focus on training and development at Giant increased greatly during 1989. This
resulted in in-house training for a large number of management trainees, assuring Giant
the managerial talent needed to support its expansion plans for the nineties.
In the current year Giant will focus its efforts on training and education of new
employees. The Customer Service program established in late 1989 will be continued
on a larger scale.
Retail trade in The Netherlands
European and Dutch regulatory developments
k s the groundwork for the economic integration of Europe continues, retailers un
fortunately have valid reasons to doubt that free trade between the EC member
.states will actually begin on January 1, 1993. The harmonization of VAT and
excise taxes is advancing very slowly and in 1989 a number of member states published
'memoranda' which without exception argued for maintaining various import barriers.
In its Second Communication on the free trade of food, the European Commission
itself does not seem immune to political pressure. At the least, the Commission is
prepared to leave room for national rules with respect to premium brands and names of
origin. This reopens the way to protectionism.
It was unfortunate that, with the fall of the Dutch government, the long-awaited
liberalization of store closing time regulations was again delayed. As a result, Dutch
retailers are still unable to respond adequately to the dramatic shift in customer needs
regarding store hours.
In the context of a new Licensing and Catering Act, voices in government have again
advocated restricting the sale of alcoholic beverages in supermarkets. Ahold has always
advocated responsible alcoholic beverage consumption, but feels that the proposed
measures will not effectively serve this end.
Exceptionally good year
In 1989, consumer spending on food, tobacco and beverages increased by 3%. Of this
growth, 2% was caused by a higher consumption level; the remaining 1% was attribut
able to price increases. The retail market served by Ahold grew by 2.6%, as against 3.6%
in 1988. This relative decline in sector growth was caused by a reduction in volume
growth.
Albert Heijn, along with smaller regional retailers and the major independent stores,
outperformed the market and once again managed to enlarge its market share. Etos also
succeeded in increasing its market share in 1989. Gall Gall's market share remained
unaltered.
The number of Ahold retail outlets rose from 687 to 881, chiefly reflecting the acquisi
tion of Gall Gall and Party Shop. The total sales area increased by 4.7% to 4,654,095
square feet.
*Dfl 1.9155 SI
18
Number of employees,
average
x 1.000
90
80
70
60
50
40
30
-
20
10
.85
86
87
88
89
Ahold United States
Ahold The Netherlands
Key figures Retail Trade The Netherlands
1989 (1988)
Sales
fx DJl 1 million)
Sales growth
in°/o
Locations
Sales area
x 1,000 sq.ft.
Sales*/
average sq.ft
Full-time
equivalents,
average
Albert Heijn
AH-Franchising
6,902 6,601)
654 525)
4.5
24.5
443 452)
106 88)
4,176(4,129)
870 (860)
19,846 19,055)
22 21)
Etos
Gall Gall
Other and services
207 190)
351 131)
172 143)
9.0
167.9
20.6
143 137)
267 91)
28 7)
198 187)
212 82)
68 45)
560 (580)
860 (870)
725 662)
571 165)
648 639)
Total
8,286 (7,590)
9.2
881 (687)
4,654(4,443)
21,812 (20,542)
