'Ahold derives more synergy
benefits from its European scale'
'Increasing cooperation in
Central Europe will improve
sales and results'
Hypernova
to accelerate their quest for an interna
tional player, thus benefiting from scale
and know-how while building a sustain
able competitive advantage in their own
market. Throughout 1999, Ahold steadily
acquired a range of supermarket compa
nies in Madrid and southern Spain,
market leaders in quality and innovation
in their respective trade areas. The
acquisition of Eco Avila and Longinos
Velasco in Madrid was followed by that
of two family-owned businesses in the
south of the country - Dialco in Seville,
whose stores trade under the name of
Cobreros, and Dumaya in Malaga.
A month later, Castillo del Barrio, also
in Malaga, and Guerrero in Granada were
added to the network. In October 1999,
Ahold acquired two smaller chains - Las
Postas and Mercasol - in Marbella on the
Costa del Sol. Ahold is now converting its
various supermarket chains in the south
to the Cobreros store brand. In January
2000, Ahold acquired Kampio, extending
its Spanish base from Madrid and south
eastwards into Catalonia: this transaction
is still subject to approval by the Spanish
anti-trust authorities.
Czech Republic
In 1999, Ahold further developed its
leading position in the Czech food retail
market. Sales rose 40% to Euro 454
million in this wholly-owned operation
through 173 stores in four formats. The
88 Mana supermarkets were particularly
popular with customers for their deli,
bakery and perishables departments. The
groundwork was laid for incorporating the
63 Sesam discount stores into this format.
Three successful Hypernova hypermarkets
are located in the popular regional shop
ping malls of larger cities and attract
customers from a wide catchment area.
The know-how Ahold has now gained with
hypermarket operations is being used on
a worldwide scale and is rapidly being
implemented in neighboring Poland
in particular. The 19 Prima mini-hyper
markets, which performed particularly
well, offer a wide selection of food and
non-food products and are located close
to smaller cities. In May, Ahold Czech
Republic moved its headquarters from
Brno to the capital Prague.
Poland
Ahold generated sales in its wholly-
owned Polish operation of Euro 222
million, a rise of 48%, through 115
stores in three formats. The 35 Max
supermarkets, 78 Sesam discount stores
and two hypermarkets offer a comprehen
sive range of grocery and fresh food
products and a growing number of
non-food items at very competitive
prices. In May 1999, Ahold acquired
11 Centrum supermarkets located in
the southeast region. Substantial synergy
benefits accrued throughout the year
from the accelerating alignment of
Ahold's Polish and Czech activities
and much of the hypermarket know-how
gained in the Czech Republic has been
transferred to Ahold Polska. This will
assist the substantial growth plans for
large stores and hypermarkets in 2000.
Ahold Polska is regarded as one of the
Royal Ahold Annual Report 1999
