'Ahold has rapidly expanded
its European scale and holds
Europe prominent positions with good
prospects for further progression'
choose from an extensive assortment of
fresh products, a wide range of A-brands
and a full private label line.
Convenience often drives customer
requirements. This calls for Albert Heijn
stores to be visible in various locations
and formats, ranging from traditional full-
service supermarkets in suburban shop
ping centers to formats better suited to
the realities of contemporary shopping:
convenience stores in hospitals and even
underground in downtown or densely-
populated urban areas. Meanwhile,
the Albert Heijn internet site and home
delivery activities have taken off, making
Albert Heijn the preferred place for food
shopping on the internet and attracting
many new customers.
The company introduced convenience
stores at train stations to ensure that
where there are people, there is an
Albert Heijn. Even in outlying rural
districts, most Albert Heijn stores are
close to residential areas and rarely
more than a short drive away.
Albert Heijn also made great strides in
the non-food sector, particularly in books,
personal computers and health and beauty
care products. The groundwork was laid
for the introduction of financial services,
scheduled for roll-out in the summer of
2000.
Marvelo, Ahold's private label coffee and
tea manufacturer, contributed to product
development while Meester, Ahold's
prepared meats processing company, and
two central butchery facilities were sold.
Sctiuitema
Schuitema, the Dutch food wholesale
subsidiary in which Ahold has a 73%
stake, again reported impressive
autonomous growth in 1999, both in
terms of sales and operating results.
Its four supermarket formats, particularly
C1000, saw market share rise to 11.4%
while sales increased 6% to Euro 2.3
billion. The C1000 format, good for over
90% of Schuitema sales, offered its
customers a range of competitively-
priced quality products, expanded its
private label line and introduced its
third-generation stores. In December
1999, Schuitema reached initial agree
ment to acquire 125 supermarkets and
six hypermarkets that operate under
the A&P store brand. Finalization of the
transaction is still subject to approval
by the Dutch anti-trust authorities.
Specialty stores
The Etos group of health and beauty care
stores and the natural product chain
De Tuinen in The Netherlands generated
sales of Euro 348 million, a rise of 17%.
Market share rose to 15%. A newly-
restyled design was implemented in each
of its 404 Etos stores, enlarging average
selling space by over 30% and enabling
Etos to carry a wider choice in popular
categories. Five new stores in a new,
larger 'World' format opened around the
country. Health and beauty articles were
a particular growth segment in 1999 and
Etos engaged in a subtle repositioning
to become a center for 'total care' within
Ahold. The Etos private label line is
being relaunched and will add 300 new
products in due course, bringing its total
to 1,200.
Gall Gall, Ahold's chain of wine and
liquor stores, achieved stable sales of
Euro 228 million and again increased its
share of the liquor segment to 25.8% in
a shrinking market for strong alcoholic
beverages. The 488 stores in the chain
built on Gall Gall's reputation as being
the customer's preferred advisor on wines
and liquor and introduced a popular
promotion known as 'Vin du Siecle'
which generated considerable extra sales.
To strengthen the Gall Gall brand, a
state-of-the-art internet site was devel
oped (www.gall.nl), boosting wine and
liquor sales over the counter and through
home delivery as well as offering a
specialist wine auction and regularly
updated information on wine and food.
Jamin, Ahold's chain of candy stores, saw
sales decrease 13% to Euro 39 million.
The 134 outlets concentrated on exclusive
confectionary and built a solid working
relationship with A-brand suppliers.
Deli XL
1999 was a banner year for Ahold
Institutional Food Service Company GVA,
which acquired fellow food service
company Gastronoom in the summer
and introduced a new name, Deli XL,
in January 2000 for its joint activities.
24 Royal Ahold Annual Report 1999
