Business overview
BUSINESS SEGMENTS
Our principal business is the operation through subsidiaries and joint ventures of
food retail trade stores and foodservice activities in the U.S. and Europe. Our retail
business accounted for approximately 67% of our consolidated net sales in 2005.
FOOD RETAIL BUSINESS
Stop Shop/Giant-Landover Arena
Our operations in the U.S. represented approximately 74%
of our consolidated net sales in 2005. In addition to our
principal activities, some subsidiaries finance, develop
and manage store sites and shopping centers primarily
to support our retail operations. For a list of our significant
subsidiaries, see the information in Note 38 to our
consolidated financial statements included in this
annual report.
We have organized most of our food retail business into
arenas, which operate supermarkets under local brand
names. In addition, Schuitema N.V., which is a consolidated
subsidiary, is part of our food retail business in the
Netherlands. Our retail sales consist of retail chain
consumer sales, sales to franchise stores and sales to
associated stores. Franchise stores typically operate under
the same format as, and are not distinguishable from,
Ahold-operated stores. Franchisees generally purchase
merchandise from us, pay a franchise fee and receive
various support services, including management support and
training, marketing support and administrative assistance.
Operators of associated stores generally pay us fees but
operate as independent retailers and may use various store
formats. These stores also have more flexibility in terms of
product lines and pricing, but we provide them with support
services. Our retail business generally experiences an
increase in net sales in the fourth quarter of each year,
primarily as a result of the holiday season.
This arena, headquartered in Quincy, Massachusetts, is
comprised primarily of the following entities:
The Stop Shop Supermarket Company LLC ("Stop
Shop"), acquired in 1996, which has a market area
consisting of Massachusetts, Connecticut, Rhode Island,
New Jersey, New York and New Hampshire.
Giant of Maryland LLC ("Giant-Landover"), acquired in
1998, which has a market area consisting of Maryland,
Virginia, Delaware and the District of Columbia.
Peapod, LLC ("Peapod"), acquired in 2000-2001, which
provides an Internet-based home shopping and grocery
delivery service as an integrated service of the Stop
Shop/Giant-Landover Arena, along with service to the
metropolitan areas of Chicago, Illinois and Milwaukee,
Wisconsin.
This arena operated the following retail locations as of
January 1, 2006:
Square I
meters 1 I Stores
1 The property data is presented in square meters, which may be converted
to square feet by multiplying the number of square meters by 10.75.
2 Giant-Landover also operates in Delaware under the name "Super G" to
distinguish itself from Giant-Carlisle.
3 This does not include 163 retail locations subleased to third parties.
4 Of these stores, 36% were subject to finance leases, 42% were subject
to operating leases and 22% were owned.
Stop Shop supermarkets
800 - 4,600
69
Stop Shop superstores
2,200 - 5,300
307
Giant-Landover supermarkets 2
1,000 - 4,700
187
Stand-alone pharmacies
150 - 1,800
10
Total 3, 4
573
46
