I
f
USD
15 million customers 150,000 associates 1,063 stores
'Ahold's US strategy in 1999 was
to continue to improve and grow
existing operations'
sources, excellent
Ahold's US strategy in 1999 was to
continue to improve and grow existing
operations. Autonomous growth of 5%
at Ahold's US companies exceeded the
industry average. All companies achieved
their goals and set new performance
records. Ahold also made considerable
progress in using economies of scale
and synergies to step up competitiveness
and, most importantly, provide 15 million
weekly customers in the US with a
superior shopping experience.
Product assortment, pricing policy, store
format development, community relations,
category management, human resource
development and real estate - to name
but a few - retained a local focus,
although all were positively impacted by
best practice exchange. The strengths
of each individual company are being
harnessed to leverage US and global
resources of the Ahold group most effec
tively. This resulted in a number of new
synergy initiatives on top of existing
programs including US and worldwide
sourcing, joint procurement of private
labels, joint logistics and distribution,
pooling of administration and finance,
and information systems running on
common IT platforms.
During the year, Ahold remained in
contact with companies that may want to
join the Ahold USA group in the future.
However, Ahold stuck to its policy of not
being prepared to pay an unrealistic price
for potential acquisition candidates.
At the end of the year, the company
terminated its tender offer announced in
March 1999 for the preferred shares of
SMG II, parent company of Pathmark
Stores Inc., when the Federal Trade
Commission sustained its strong opposi
tion to the transaction.
In early 2000, Ahold USA's regional
headquarters was transferred from
Atlanta, Georgia, to Chantilly, Virginia,
close to the nation's capital and firmly
rooted in the midst of its operating
companies. A small staff coordinates
activities, supports synergy initiatives
and contributes to special projects.
Stop Shop
Stop Shop, New England's largest
supermarket chain, operates 168 super
stores and 34 supermarkets in four
states: Massachusetts (100), Connecticut
(70), Rhode Island (20) and New York
(12). Headquartered in Quincy,
Massachusetts, Stop Shop had another
outstanding year with sales increasing
8% to USD 6.7 billion.
Stop Shop initiated a sweeping store
upgrade program in 1999 to provide its
customers with an even more exciting
shopping environment. The company
concentrated its efforts on a variety of
new ways to grow the business and
operate most effectively, resulting in
increased customer satisfaction. The
continued focus on innovative business
models, expansion into untapped trade
areas, the upgrading of the store manage
ment organization and the implementation
1,250
1,000
750
500
250
0
Operating results USA
1995 1996 1997 1998 1999
in millions
Stop Shop
Royal Ahold Annual Report 1999 17
