Properties
Retail locations and 2006 changes to the Company's store count were as follows:
Closed
January 1,
Opened
Sold
December 31,
2006
Acquired
Divested
2006
Stop Shop Giant-Landover Arena
573
15
13
575
Giant-Carlisle Tops Arena
267
20
67
220
Albert Heijn Arena
1,651
94
34
1,711
Central Europe Arena
502
33
19
516
Schuitema
462
6
10
458
Total
3,455
168
143
3,480
As of December 31, 2006, of the 3,480 locations, 1,088 were operated by franchisees or associates. Of the 2,392 locations
not operated by franchisees or associates, 16 percent were subject to finance leases, 65 percent to operating leases and
19 percent were company owned. The Company's retail locations range in size from 35 to 10,000 square meters.
The Company also operated the following other properties as of December 31, 2006:
Warehouses distribution centers production facilities 247
Properties held for future development or sale not in use 445
Properties under construction development 79
Residential properties 142
Total 1,002
Of these other properties, 6 percent were subject to finance
leases, 45 percent to operating leases and 49 percent
were company owned. Further, of these 1,002 properties
36 percent were subleased to franchisees, operators of
associated stores or third parties.
Our leased properties have terms ranging up to 25 years
with renewal options for additional periods. Store rentals
are normally payable monthly at a stated amount or at
a guaranteed minimum amount plus a percentage of sales
over a defined base. For additional information on lease
obligations, see Notes 27 and 34 to the consolidated
financial statements included in this Annual Report.
Ahold believes that its current facilities are adequate
to meet the requirements of its present and foreseeable
future operations.
Capital expenditures of EUR 1.5 billion in 2006, EUR 1.4
billion in 2005 and EUR 1.7 billion in 2004 were primarily
related to the construction and expansion of stores and
supply chain infrastructure improvements. The increase in
capital expenditures over 2005 was primarily due to the
acquisition of Konmar stores in the Netherlands and
Clemens Markets in the United States.
Sources of supplies
Ahold's food retail and foodservice businesses purchase
from over 10,000 independent sources; the Company's
businesses are not dependent on any individual supplier
or supply contract. The Company's purchases are made for
resale to customers or for internal use. For-resale purchases
make up the majority of the Company's purchases and
are comprised of products intended for sale to the
Company's customers. The for-resale sources of supply
consist generally of corporations selling branded and private
label products, as well as perishable goods. Products
are purchased at multiple levels within the organization,
with some selections made at local operating companies
and others at regional and continental (U.S. and European)
purchasing organizations. Though selected general
merchandise is purchased at a global level, most retail
purchasing is conducted on a regional or continental basis.
Not-for-resale purchases represented a much smaller
selection and include only those products and services
that are intended for the Company's internal consumption.
Ahold Annual Report 2006 39
