11% autonomous sales
growth in Latin America
Sales growth in Asia
E-commerce
leader ICA and the expansion of our
alliance with Portuguese partner Jerónimo
Martins, which is under review.
Internet sales to double each year
We expect consumer sales through the
internet to double each year for the fore
seeable future. In 2000, we anticipate
sales of approximately Euro 250 million,
rising to about Euro 1 billion in 2002.
Transactions with our suppliers via
internet already amount to more than
Gross national product in Latin America is
expected to rise by about 3.5%. Private con
sumption will increase by about 3%. The food
retail market is likely to grow in Argentina, in
Chile and in Brazil. Ahold expects autonomous
sales growth of about 11% from its Latin
American activities in 2000. Its current joint
ventures will open about 30 large stores and
remodel a further 50 in 2000, bringing the end-
of-year total to 557, including La Fragua (year-
end 1999: 408). Investment in existing
operations will amount to about Euro 370 mil
lion, (1999: Euro 303 million). Operating margin
is expected to increase.
Euro 20 billion. Investment in e-commerce
will total approximately Euro 200 million
this year.
Growth strategy and financing
In 2000, we will further develop our
worldwide network of supermarket
companies and related activities through
autonomous growth, acquisitions and
joint ventures. We intend to derive every
possible benefit from economies of scale
generated by synergy projects, knowledge
Gross national product in Thailand, Malaysia
and Indonesia is expected to increase by
approximately 3% to 4%. Private consumption
is likely to rise by about 4% to 5% in Thailand
and Malaysia and by about 2% in Indonesia.
The food retail sector in Asia is expected to rise
by approximately 10%. We expect autonomous
growth in Thailand and Indonesia to be about
10% as well. Sales development will be more
modest in Malaysia. At the end of the year,
about 100 Tops stores are expected to be in
operation, (at 1999 year-end: 80). Investment
in our existing business in 2000 will amount to
approximately Euro 12 million. We anticipate
reaching break-even in Asia in the fourth quar
ter of this year.
transfer and cooperation among Ahold
and Ahold-associated companies on four
continents. Investment in tangible fixed
assets will be financed from cash flow
generated by current business. We will
fund sizeable acquisitions through external
financing sources and the issue of new
shares. The 2000 tax rate is expected to
remain virtually the same as in 1999.
Equity will rise as a result of the issue of
new shares and the addition of retained
earnings. On balance we expect the equity
ratio to rise.
Employment to rise marginally
The development of our current store
operations and the launch of new activities
will result in new jobs in our trade areas.
Organizational restructuring may reduce
employment in some areas of our opera
tion. For Ahold as a whole, we expect
employment to grow modestly in 2000.
Corporate Executive Board
March 7, 2000
Royal Ahold Annual Report 1999 41
