Retail trade
00 Ahold ANNUAL REPORT 2002 47
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
Operating income (loss) before impairment and amortization of goodwill and exceptional loss by business
segment
The following table sets forth operating income (loss) before impairment and amortization of goodwill and exceptional loss
by business segment for fiscal 2002,
fiscal 2001 and fiscal 2000:
Fiscal 2002
Fiscal 2001
Fiscal 2000
EUR
Change
EUR Change
EUR
(in EUR millions, except percentages)
(restated)
(restated)
Retail trade:
Stop Shop
761
21.6
626
13.1
553
Giant-Landover
407
6.4
382
31.0
291
Other United States
383
(11.8)
434
62 3
269
Subtotal retail trade United States
1,551
7.5
1,442
29 7
1,113
Albert Heijn
264
70
247
25 9
196
Other Europe
32
(70.7)
110
10 2
100
Subtotal retail trade Europe
296
(170)
357
20 6
296
Latin America
(6)
(110.1)
56
9 6
51
Asia Pacific
(31)
(55.2)
(20)
32 7
(30)
Total retail trade
1,810
(1.4)
1,835
28.3
1,430
Food service:
United States
314
145.9
128
16 6
110
Europe
8
(64 8)
23
(2 0)
24
Total food service
322
113.7
151
13.3
134
Other Activities
13
(84 8)
77
1 3
76
Total
2,145
4.0
2,063
25.8
1,640
We have retail trade operations in the United States, Europe, Latin America and Asia Pacific. Our retail business consists
of our retail chain sales, sales to franchise stores and sales to associated stores.
As of the end of fiscal 2002, we operated or serviced 5,606 stores through our consolidated subsidiaries, including
790 franchise stores and 450 associated stores. Over 60% of these stores are supermarkets. In some local markets, we
have expanded into other formats, including specialty retail trade formats, hypermarkets, cash and carry and convenience
stores. The majority of our franchise stores and associated stores are located in The Netherlands.
Store formats
Franchise stores typically operate under the same format as, and are not distinguishable from, Ahold-owned stores in a
particular geographic area. Each franchisee purchases merchandise at wholesale prices from us, pays a franchise fee,
receives various support services, including logistical and warehouse services, and receives management support and
training, marketing support and administrative assistance, and indirect financial assistance in the form of loans and
guarantees. Associated stores operate as independent retailers and may use various store formats, including non-Ahold
formats. These stores also have more flexibility in terms of product line and pricing, but we provide them with support
services, including the ability to benefit from bulk purchasing and an increase in bargaining power in entering into certain
contracts. For a detailed description of our franchise and associated stores, please see "Retail Trade in Europe" on page 54.
We categorize our retail trade operations by format type, which we determine based on each store's product mix (food and
non-food) and sales area. Supermarkets are retail locations where the average sales area is less than 2,000 square meters
or 22,000 square feet or where the average sales area for non-food items is less than 25% of the total average sales area.
Hypermarkets are retail locations where the average sales area is more than 2,000 square meters or 22,000 square feet or
where the average sales area for non-food items is more than 25% of the total average sales area. A compact hypermarket,
while not strictly classified, is a small hypermarket where the average sales area is between 2,000 and 5,000 square
meters. Superstores are comparable in size with supermarkets, but offer a wider assortment of goods and services,
