1.0%
0.8%
Other Europe
Highlights of the year
Net sales
Operating income
Ahold
Annual Report 2010
Group at a glance
Performance by segment continued
Governance
Fi nancials
Investors
Sales million)
1'660
2009
1,683
Identical sales growth
Contribution to Group sales
5.6%
Operating income million)
2010
10
2009
(76)
On an underlying
basis
Number of stores (at year end)
2010
2009
Czech Republic
279
278
Slovakia
26
26
Other Europe
305
304
Albert in the Czech Republic successfully improved its commercial position through a value
campaign focused on competitive prices, and by investing in the quality and presentation of its
assortment, particularly fresh food products
Albert extended its store opening hours in the Czech Republic by more than 15 percent
Albert began to benefit from a lower cost structure as a result of continuous improvements that
simplified the business and lowered costs. In 2010, Albert Hypernova completed the
downsizing of all of its hypermarkets in Slovakia
Albert Hypernova in the Czech Republic and Slovakia comprises the segment called Other
Europe. The following table contains operational information, including net sales and operating
income (loss), for Other Europe in 2010 and 2009:
2010
2009
Net sales in millions
1,660
1,683
Change in identical sales
0.8%
(1.2)%
Change in identical sales (excluding gasoline sales)
0.7%
(1.2)%
Operating income in millions
10
(76)
Operating income as a percentage of net sales
0.6%
(4.5)%
Underlying operating income as a percentage of net sales
1.0%
(2.1)%
Number of employees at year-end (headcount)
12,140
12,927
Number of employees at year-end (FTE)
11,144
12,096
Sales area of own operated stores (in thousands of square meters)
452
462
Net sales amounted to €1.7 billion in 2010, a decrease of 3.5 percent at constant exchange rates
and adjusted for the additional week in 2009. The decline was due to last year's closing of 23
loss-making stores and downsizing of large hypermarkets. Identical sales increased 0.8 percent
as a result of a successful second half of the year in the Czech Republic. This was impacted by
improvements to Albert's commercial position, supported by a new campaign, promotions, and
extended store opening hours.
Other Europe reported an operating income of €10 million, an improvement over last year's
operating loss of €76 million. 2009 was impacted by rebranding costs and significant restructuring
charges related to the simplification of the business, reduction of its cost base, downsizing of
large hypermarkets, and closure of 23 loss-making stores. In 2010, the company began to benefit
from a more competitive cost base as a result of continued operational improvements and
simplification that started in the previous year. The 2010 operating income included €8 million in
restructuring and impairment charges and a €2 million gain on the sale of real estate.
