i
results. Edwards has emerged intact from the competition of recent
years and has seen sales grow by 14.0% to $1,531 million. In 1996
the 28 Mayfair stores will be integrated. The stores are located in
New Jersey and are doing well, serving an affluent, densely popu
lated market. Eight additional Rhode Island-based supermarkets,
acquired in 1995, were quickly integrated into the Edwards orga
nization and have continued to perform well. Favorable market
conditions and improving profitability indicate an excellent growth
outlook for Edwards.
Giant Food Stores once again reported a very good year.
Sales rose 17.2% to $1,476 million. Operating results increased
also strongly. Giant added eleven new stores in 1995, expanding its
total selling space by 22%. Giant's Every Day Low Price format
proved highly resistant to mounting competition. Giant's growth
potential remains excellent, and for this reason the level of invest
ment will remain high.
BI-LO achieved a 7.9% sales increase to $2,511 million.
New competition put margins and sales growth under pressure,
leading to slightly lower operating results. In the coming years,
BI-LO will modernize many of its stores. The integration of Red
Food supermarkets into BI-LO was completed in Spring 1995, but
integration of the computer systems took longer than projected,
entailing additional costs. Additionally, rebuilding consumer loyalty
following conversion of the former Red Food Stores into BI-LO
supermarkets also took longer than planned.
The Ahold Real Estate Company (ARC) acquires, develops and
manages shopping centers to support the growth of Ahold's
American supermarket chains. Investments in new projects in 1995
totaled $35.7 million. Rental income and operating results rose
substantially. At year end 1995, ARC realized nineteen projects and
had four projects under development. In total, ARC had 1,770,000
sq. ft. of occupied store space in portfolio.
Annual Report 1995 Royal Ahold 9
Real Estate
The 28 Mayfair supermarkets were remodeled to Edwards Super Food Stores.
