Stop Shop/Giant-Landover Arena results
Net sales
as used in this annual report, refers to data published by
A.C. Nielsen and is calculated as an annual average.
The following table sets forth net sales, store counts and
sales area information for the Stop Shop/Giant-Landover
Arena in 2005 and 2004:
1 The identical sales in 2005 are compared to 2004 identical sales (52 weeks in
2005 and 52 weeks in 2004).
2 The comparable sales in 2005 are compared to 2004 comparable sales (52 weeks
in 2005 and 52 weeks in 2004).
3 At year-end.
4 The sales area in thousands of square meters in 2005 and 2004 was 2,020 and
1,969, respectively.
The arena's net sales in U.S. dollars increased in 2005
compared to 2004, which was largely attributable to the
opening of new stores and replacement stores.
Net sales growth in 2005 was negatively affected by the
inclusion of the additional week in 2004. Excluding week
53 of 2004, net sales increased by 3.5% in 2005.
In 2005, identical sales at Stop Shop, excluding net
sales of gasoline, decreased by 0.4%. Gasoline prices
experienced a higher rate of inflation than food prices in
2005. Net sales of gasoline had a positive effect on Stop
Shop's identical sales in 2005.
Net sales per transaction at Stop Shop increased by
3.6% in 2005 compared to 2004, primarily as a result
of an increase in the average item value by 4.6%. The
number of transactions at Stop Shop decreased by
3.3% in 2005 compared to 2004, primarily as a result
of a lower shopping frequency.
Net sales per transaction at Giant-Landover increased by
0.7% in 2005 compared to 2004, primarily as a result
of an increase in the average item value by 4.0%. The
number of transactions at Giant-Landover decreased by
3.7% in 2005 compared to 2004, primarily as a result
of a lower shopping frequency.
Identical sales and comparable sales in 2005 were
negatively impacted by pressure from new store openings
by competitors and increased competitive activities in the
form of major promotional campaigns. The arena also
faced increased competition from alternative retail
formats, including traditional discount stores and
wholesale club outlets.
Despite the increased competition, Stop Shop was able
to increase its market share to 24.5% in 2005 compared
to 24.0% in 2004, while Giant-Landover's market share
decreased to 30.6% compared to 31.2% in 2004.
Net sales in 2005 included USD 108 million of net sales
from our subsidiary the American Sales Company to BI-LO
and Bruno's and Wilson Farms which, prior to their
divestments in 2005, were eliminated as intercompany
sales. The American Sales Company provides purchasing
and distribution services to the U.S. arenas. Following
January 1, 2006 no sales, have been made to BI-LO and
Bruno's and Wilson Farms.
The arena encountered strong competition from traditional
supermarkets in the New England market, which
intensified as a result of continuing consolidation,
including Shaw's, which was bought by Albertsons,
which in its turn has agreed to be acquired by Supervalu.
At Peapod net sales in 2005 increased by 26.5%
compared to 2004. Excluding week 53 of 2004, net sales
increased by 28.6% in 2005. This increase was driven by
higher customer counts, in part as a result of an increase
in the market area served by Peapod, and higher net sales
per transaction.
During 2005, the arena added Staples, Inc. as a partner
for collaboration on a Staples branded store-in-store
section of school and office supplies in the arena's stores.
These Staples sections were introduced at a majority of
the arena's retail locations in 2005. During 2005, the
arena also launched Nature's Promise, its organic foods
line of private label products.
In millions, except
percentages, store count
and sales area
Net sales in EUR
Net sales in USD
Change in identical sales 1
Stop Shop
Giant-Landover
Change in comparable
sales 2
Stop Shop
Giant-Landover
2005
2004
(52
weeks)
Change
(53
weeks)
13,161
16,346
1.6
1.5
0.2
(3.0)
0.7
(2.4)
12,949
16,105
Company-operated stores 3 573
New stores 17
Replacement stores 10
Remodeled stores 15
Closed stores 6
563
26
17
19
6
Sales area in thousands of
square feet 3, 4 21,720
21,215
Net sales as a percentage of
consolidated net sales 29.6%
29.0%
AHOLD ANNUAL REPORT 2005 67
