growth. Excluding the impact of currency exchange rates, net sales at Tops and Grant-Carlisle decreased by EUR 296
million, or 4.6%, in fiscal 2001 compared to fiscal 2000.
Operating income in our segment for other retail trade operations in the United States rose by EUR 162 million, or
60.7%, to EUR 429 million in fiscal 2001 compared to fiscal 2000. As a percentage of net sales, operating income was
4.1% in fiscal 2001 compared to 2.5% in fiscal 2000. Despite the decrease in net sales, operating income increased
mainly due to a decrease in operating expenses. The decrease in operating expenses in fiscal 2001 reflects in part the
transfer of the Edwards division from Giant-Carlisle to Stop Shop, as noted above. Operating expenses, as a percentage
of net sales, also decreased as a result of ongoing cost control efforts. Additionally, we recorded EUR 50 million of real
estate gains in fiscal 2001 primarily relating to the sale and leaseback of properties related to leveraged lease transactions
at BI-LO and Giant-Carlisle, along with several other individually insignificant gains on the sale of fixed assets. Operating
expenses in fiscal 2001 included a charge of approximately EUR 5 million to remodel and integrate the former Grand
Union stores during the first half of the year. Currency exchange rates did not have a significant effect on operating
income in fiscal 2001 compared to fiscal 2000.
Retail trade: Europe
In Europe, we have significant retail trade operations through our wholly-owned and majority-owned subsidiaries in
The Netherlands, the Czech Republic, Slovakia, Poland and Spain.
Our retail trade operations in Europe include, among others, hypermarkets, supermarkets, and convenience stores.
The following table sets out, for the periods indicated, net sales and store counts, for the retail trade operations of our
consolidated subsidiaries in Europe. For additional information on our unconsolidated joint ventures and equity investees,
please see "Unconsolidated Joint Ventures and Equity Investees" below.
2002
2001
2000
Net sales
Store count
Net sales
Store count
Net sales
Store count
(in EUR millions)
(restated)
(restated)
The Netherlands
Albert Heijn company stores
4,737
489
4,548
479
4,433
508
Albert Heijn franchise stores
966
217
861
207
768
201
Etos B.V. (1)
367
490
358
496
285
480
Gall Gall B.V.
231
489
221
493
211
486
Schuitema company stores (2)
644
37
677
48
165
129
Schuitema associated stores (2)(3)
2,227
450
2,071
467
1,915
436
Other (4)
44
142
67
143
108
143
Czech Republic
924
212
789
203
598
190
Slovakia
54
13
2
2
Poland
577
184
552
165
393
149
Spain
2,047
628
1,993
623
518
582
Total Consolidated Europe
12,818
3,351
12,139
3,326
9,394
3,304
(1) Includes 65 stores operated by De Tuinen, which was divested in May 2003.
(2) This subsidiary is 73.2%-owned by us.
(3) Consists of sales by Schuitema to associated stores.
(4) Includes 142 stores operated by Jamin, which was divested in June 2003.
- Fiscal 2002
Net sales in European retail trade operations increased by EUR 675 million, or 5.6%, to EUR 12.8 billion in fiscal 2002
compared to fiscal 2001. The economic recession in Central Europe, particularly in Poland, where unemployment was
high, depressed the purchasing ability of our customers. However, despite the economic downturn, we experienced net
sales growth in Europe. Particularly in The Netherlands, Albert Heijn and Schuitema performed strongly. Within
The Netherlands and Spain, the introduction of Euro notes and coins in January 2002 contributed to annual rates of
inflation of 3.6% and 3.5%, respectively, in fiscal 2002, which positively affected our net sales in these countries.
Additionally, we experienced net sales growth in The Netherlands at identical stores and net sales growth in Central Europe
as a result of the opening of new stores.
54
