Operating and Financial Review and Prospects
60
Ahold Annual Report 2003
Operating and Financial Review and Prospects
Harris Teeter stores, which were acquired in 2001.
Bruno's opened five new and replacement stores in
2002.
Operating income in other retail trade operations in
the U.S. decreased by EUR 193 million, or 45.0%, to
EUR 236 million in 2002 compared to 2001. As a
percentage of net sales, operating income decreased
from 4.1% in 2001 to 1.9% in 2002. Operating income
was negatively affected by relatively flat gross profit
margins and an increase in operating expenses. The flat
gross profit margins resulted from our continued
investment in customer promotions due to the
weakened economy and increased competitive
pressures, particularly in the southeastern region of the
U.S. and in the markets served by Tops. The increase in
operating expenses in 2002 was mainly caused by a
EUR 128 million goodwill impairment charge related to
Bruno's supermarkets. Additionally, operating expenses
increased due to integration costs relating to the merger
of administrative functions at Tops and Giant-Carlisle in
2002 and the integration of Bruno's operations, which
we acquired in December 2001. Currency exchange
rates did not have a significant effect on operating
income in 2002 compared to 2001.
Retail trade: Europe
The following table sets out, for the periods indicated, net sales and store counts, for the retail trade businesses of
our consolidated subsidiaries in Europe. For additional information about our unconsolidated joint ventures and
equity investees, please see "Unconsolidated Joint Ventures and Equity Investees" below.
As of and for the year-ended
2003
2002
2001
Net
sales
(in EUR millions)
Store
count
Average
sales
area1
x 1,000 m2
Net
sales
(in EUR millions)
Store
count
Average
sales
area1
x 1,000 m2
Net
sales
(in EUR millions)
Store
count
Average
sales
area1
x 1,000 m2
The Netherlands
Albert Heijn
company stores
4,614
493
596
4,737
489
584
4,548
479
578
Albert Heijn
franchise stores
991
212
202
966
217
202
861
207
195
Etos B.V.2
353
423
89
367
490
89
358
496
87
Gall Gall B.V.
226
494
39
231
489
41
221
493
42
Schuitema
company stores3
677
91
1
644
93
1
677
104
1
Schuitema
associated stores3, 4
2,393
387
413
2,227
394
419
2,071
411
431
Other5
20
0
19
44
142
31
67
143
32
Central Europe
1,580
428
638
1,555
409
625
1,343
370
495
Spain6
2,074
616
537
2,047
628
544
1,993
623
532
Total Consolidated
Europe
12,928
3,144
2,534
12,818
3,351
2,536
12,139
3,326
2,393
1 We have presented certain sales area data in the tables in this annual report in terms of square meters. Square meters may be converted to square feet by multiplying the number of
square meters by 10.75 and square feet may be converted to square meters by multiplying the number of square feet by 0.093.
2 The information for 2003 includes 65 stores operated by De Tuinen, which was divested in May2003. The information for 2002 and 2001 includes 65 and 70 De Tuinen stores, respectively.
3 This subsidiary is 73.2%-owned by us.
4 Consists of sales by Schuitema to associated stores.
5 We divested Jamin in June 2003 (128 stores).
6 In November 2003, we announced our intention to divest our operations in Spain.
