Europe
'Our European Competence
Center maximizes synergies
and joint benefits'
Healthy autonomous
partnerships
MAX
Etos
In Europe, Ahold again achieved impressive
results and strengthened its position con
siderably. Ahold's 2,442* stores in five
countries - The Netherlands, Portugal,
Spain, the Czech Republic and Poland -
generated sales of Euro 10.5 billion, an
increase of 11% over 1998 and representing
31% of worldwide sales. Operating results
in Europe increased by 14% to Euro 459
million. Substantial autonomous growth in
all five countries, a wave of new acquisi
tions in Spain, initial agreement with
Scandinavia's ICA Group to become 50%
owner by mid-2000 and planned expansion
of the Portuguese partnership with Jerónimo
Martins will considerably boost Ahold's
European operations and market position.
15 t Sales Europe
10
5--
0--
1995 1996 1997 1998 1999
in billions
Ahold has rapidly expanded its European
scale and holds prominent positions in
The Netherlands, Portugal and the Czech
Republic with good prospects for further
progression in Spain, Poland and other
countries. Once the joint venture with
the ICA Group in Sweden is completed,
Ahold's position in northern Europe will
also provide new opportunities in adja
cent markets. In the meantime, Ahold
derives more and more synergy benefits
from its European scale and cooperation
among wholly-owned companies and joint
venture partners. A special Competence
Center was set up in the fourth quarter
of 1999 to maximize joint benefits and
synergies in Europe and to share know-
how and experience.
The Netherlands
In The Netherlands, format differentiation
and strict margin management were the
two prime drivers behind the ongoing
effort to offer customers a superior shop
ping experience. Overall consumer sales
in The Netherlands rose 3% to Euro 8.3
billion, led by flagship supermarket
company Albert Heijn with 1999 sales
of Euro 5.3 billion, an increase of 2%.
Ahold's 1,773 Dutch stores developed
new innovative marketing programs to
boost efficiency, volume, sales and
operating results. Wholesaler Schuitema,
73% Ahold owned with 1999 sales of
Euro 2.3 billion, generated impressive
autonomous growth and reached initial
agreement in December 1999 to acquire
the A&P store chain in The Netherlands.
Ahold Institutional Food Service company
GVA acquired Gastronoom in 1999. After
an intensive integration process, the
new name of the company, Deli XL, was
announced in January 2000. Deli XL is
22 Royal Ahold Annual Report 1999
