00 Ahold ANNUAL REPORT 2002 49
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
Changes in unconsolidated store count (including associated stores)
Fiscal 2002 (1) Fiscal 2001 (1) Fiscal 2000 (1)
Beginning of period
3,687
3,807
527
Opened/acquired
267
123
3,394
Disposed/closed
(532)
(243)
(114)
End of period
3,422
3,687
3,807
(1) Includes DAIH and Bomprego for periods for which they were not consolidated in our financial statements.
Retail trade: United States
We have established ourselves, through acquisitions and organic growth, as a leading food retailer in the United States,
operating in 18 states in the eastern United States and Washington, D.C. Based on fiscal 2002 sales, we were among the
top five food retailers in the United States. While management of each individual chain is responsible for its merchandising,
store formats and marketing strategies, the operations of the six regional operating companies and Peapod, our e-commerce
retail company, are coordinated as a group through Ahold USA. Each chain operates in its own local marketing area. Our
local brands focus on providing quality, value, variety and service to our customers. We operate superstores, conventional
supermarkets and convenience stores and an on-line grocer.
Ahold USA has undertaken a number of projects to improve operational efficiency by centralizing certain common
functions of its subsidiaries, such as financing, purchasing services and IT support. Ahold USA has established a number
of organizations to supply services to the U.S. subsidiaries, including: the Perishable Procurement Organization ("PPO"),
which negotiates prices for perishable products; Corporate Brand buying and product development; the Not-For-Resale
organization ("NFR"), which negotiates contracts for services and products used within our own operations; Ahold
Information Services, which operates a data processing center on behalf of all our U.S. retail trade operations, facilitating
their information systems operations; MAC, which administers our U.S. retail self-insurance program; American Sales
Company, which provides purchasing and distribution services in health and beauty care items, pharmacy, and general
merchandise to our U.S. operations; and Ahold Financial Services, which provides accounting and financial services to
Stop Shop, Tops, Giant-Carlisle and Giant-Landover, and is expected to service the remaining retail trade operations,
BI-LO and Bruno's, in future years.
Efficiency has been further improved by the establishment of a number of working groups, composed of representatives
of each of our U.S. operations, whose objective is to identify and implement operational "best practices" and potential
efficiency improvements across the various subsidiaries.
The table that follows sets out, for the periods indicated, net sales and store counts for our retail trade operations in the
United States. Net sales for fiscal 2001 include Bruno's results from December 2001. Net sales for fiscal 2000 reflect
Peapod's results beginning from the end of the second quarter.
2002 2001 2000
(in usd millionsexcept store count) Net sales Store count Net sales Store count Net sales Store count
Stop Shop
9,476
333
8,779
321
6,332
211
Giant-Landover (1)
5,290
189
5,115
186
4,780
183
Giant-Carlisle
2,772
113
2,473
107
2,192
96
Tops
3,121
372
3,017
370
2,785
342
BI-LO (including Golden Gallon)
3,615
441
3,613
446
3,420
422
Bruno's
1,862
187
106
185
Peapod
116
98
46
Edwards (2)
1,382
63
Total United States (3)
26,252
1,635
23,201
1,615
20,937
1,317
(1) In fiscal 2002, fiscal 2001 and fiscal 2000, Giant-Landover also operated four free-standing drugstores.
(2) The Edwards division was consolidated within Stop Shop's results beginning in fiscal 2001, except for four stores transferred to Giant-Landover in fiscal 2001.
(3) In August 2003, we reached an agreement to sell Golden Gallon, which is comprised of 138 fuel and merchandize stores. The sale was completed in October 2003.
In fiscal 2002, net sales and operating income were negatively affected by lower average currency exchange rates of the
US dollar to the Euro as set out in the table below:
