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Activities in other countries in
Ah old's activities in Portugal and the Czech Republic strengthened in 1995.
A good start was made in Poland. European sales outside of The Netherlands
rose 25.9%, to NLG 1.9 billion. Operating results increased from NLG 90
million to NLG 122 million.
In particular, Portuguese activities contributed significantly to this
growth. In the Czech Republic, an important acquisition more than
doubled the number of stores. The total number of Ahold stores
outside of The Netherlands climbed by 74 to 212. Their total sales
area increased 29.1% to 1,995,000 sq. ft.
Jerónimo Martins Retail QMR), Ahold's joint venture in Portugal
(51% Jerónimo Martins, 49% Ahold), achieved sales of NLG 1.7
billion, a 23.4% rise in local currency. Operating results also rose.
Pingo Doce had an excellent year. Sales increased by over
10%. A new, more standardized store interior, a new distribution
center, improved price image and an innovative advertising campaign
all contributed to this success. Pingo Doce has positioned itself
as the country's leading food expert, offering outstanding value in
produce items. Pingo Doce's private label line has made notable
gains. The new 378,000 sq. ft. composite distribution center near
Lisbon, is the largest of its kind in Portugal. It is lowering distribu
tion costs and providing better service to Pingo Doce's more than
one hundred stores.
JMR considerably expanded the number of Feira Nova
hypermarkets. An 81,000 sq. ft. Feira Nova store was remodeled
in Lisbon and a new one with 86,000 sq. ft. sales area was built in
northern Portugal. At the end of 1994, three former Pingo Doce
supermarkets, each with an average 30,000 sq. ft. sales area, were
converted to mini-hypermarkets. These were important contribu
tors to the 40% sales increase. Costs were further reduced. The total
number of hypermarkets stood at eight at the beginning of 1996,
compared to four last year. Operating results improved considerably.
The Pingo Doce supermarkets and Feira Nova hypermarkets
complement each other well. Hypermarkets, largely located on the
outskirts of major metropolitan areas, attract customers from miles
around with low priced food and extensive non-food assortments.
Supermarkets, with smaller reach, are primarily located in large
cities and in smaller urban areas and successfully offer a broad food
assortment in a full-service environment.
Total sales grew to NLG 222 million, a 99.0% increase in local
currency. Operating results further improved and were mildly
positive. Major investments were made in new stores. Euronova
acquired 52 Ceska General Food stores. The total number of stores
Europe
Share of total sales 6.4%
■1 United States
■i The Netherlands
■I Other European Countries
Portugal
Quel os
Charcutarla - 1
Top: The Portuguese Pingo Doce supermarkets adopted a more uniform store
interior design.
Bottom: The number of stores in the Czech Republic more than doubled.
The Czech Republic
Annual Report 1995 Royal Ahold 15
