1.5%
4.2%
Ahold USA
Highlights of the year
22,825
4.8%
Net sales
Operating income
Ahold
Annual Report 2010
Group at a glance
Performance by segment continued
Governance
Fi nancials
Investors
Sales million)
17,783
2009
16,399
Identical sales growth
Contribution to Group sales
60.2%
Operating income million)
On an underlying
basis
Number of stores (at year end)
2010
2009
Stop Shop New
England
217
212
Stop Shop New
York Metro
175
O)
CD
Giant Landover
179
180
Giant Carlisle
180
152
Ahold USA
751
713
Reorganized into four geographic divisions - Stop Shop New England, Stop Shop New
York Metro, Giant Landover, and Giant Carlisle - with one support organization and executive
leadership team
Volumes increased across the divisions and Ahold USA increased its market share
Giant Carlisle integrated the Ukrop's Super Markets chain, remodeling the 25 stores into the
Martin's banner
The Stop Shop divisions integrated five former Shaw's supermarkets
Giant Landover successfully completed Project Refresh, the three-year program to remodel
approximately 100 of its stores
Peapod expanded into Indianapolis, Manhattan, and southeastern Wisconsin
Stop Shop New England, Stop Shop New York Metro, Giant Landover, Giant Carlisle, and
Peapod comprise the segment called Ahold USA. The following table contains operational
information, including net sales and operating income, for Ahold USA in 2010 and 2009:
2010
2009
Net sales in millions
17,783
16,399
Net sales in millions
23,523
Change in identical sales
1.5%
1.7%
Change in identical sales (excluding gasoline sales)
0.4%
2.3%
Change in comparable sales (excluding gasoline sales)
0.8%
2.8%
Operating income in millions
714
782
Operating income in millions
941
1,087
Operating income as a percentage of net sales
4.0%
Underlying operating income as a percentage of net sales
4.2%
4.9%
Number of employees at year-end (headcount)
115,993
112,602
Number of employees at year-end (FTE)
82,182
78,350
Sales area (in thousands of square meters)
2,838
2,689
In 2010, net sales increased to $23.5 billion, a 5.1 percent rise when adjusted for the additional
week last year. Sales generated by the acquired Ukrop's stores amounted to $0.5 billion. Identical
sales, excluding gasoline, increased 0.4 percent in 2010, compared to 2.3 percent in 2009. Ahold
USA continues to grow in a competitive market by offering quality products and services and
running effective promotional activities. During 2010, the company succeeded in growing market
share in most of its markets.
In 2010, operating income decreased $146 million or 13.4 percent to $941 million, impacted by an
additional week in 2009. Results were impacted by $43 million in transition costs and $26 million
in restructuring and related charges, the majority of which resulted from the restructuring of Ahold
USA into one organization. The acquired Ukrop's Super Market chain had a negative operating
result of $53 million. Impairment charges were $23 million and gains on the sale of assets $12
million, as discussed in Results from operations under Group performance. A positive release of
$20 million of insurance reserves was also recorded during the year. Gross profit margins across
Ahold USA were impacted by product cost inflation that we did not fully pass through to our retail
prices. Our U.S. banners continued to focus on promotions, in line with the rest of the market.
Successful operational cost saving initiatives partially offset the lower margins.
