Our strategy
€500 million
2 www.ahold.com/reports2008
Ahold's strategy for sustainable profitable growth
is designed to accelerate identical sales growth,
improve returns, strengthen our foundation for
future expansion and create value for shareholders.
Our portfolio
Growth
Improved products and services offering
Everyday competitive prices
Cutting costs
Better understanding our customers
We operate in markets
where we believe we can
secure a number one or
number two position.
operating costs reduction by the
end of 2009
We are simplifying and
making our businesses
more efficient.
AHOLD ANNUAL REPORT 2008 I 5
The strategy focuses on five areas:
Portfolio;
Growth;
Organization;
Financial targets;
Corporate responsibility.
We operate food retail businesses in the United States and Europe. We operate
in markets where we believe we can secure a number one or number two position
and where there are clear prospects for sustainable profitable growth.
In 2008, as part of our growth strategy for Albert Heijn, we divested our
73.2 percent stake in Schuitema to private equity firm CVC Capital Partners.
We are in the process of selling our stake in Jerónimo Martins Retail.
To achieve our growth objectives, we are transforming our retail banners into
powerful local consumer brands. The critical elements of this transformation
process are:
All of our operating companies are improving their assortments, including their
private label product lines, to give customers better choices. They are also making
shopping easier for customers by providing more convenience products and services
and by improving the customer experience with new store formats and technology.
We are improving everyday value to customers by investing in price and increasing
our range of private label products so customers have a wider selection of price
levels to choose from.
We will reduce operating costs by EUR 500 million by the end of 2009 under
a company-wide cost reduction program announced at the end of 2006. We are
simplifying and making our businesses more efficient, in areas such as store
operations, shrink, logistics, energy usage and local overhead.
We gather detailed customer data and analyze it to deepen our understanding of
customer behavior. Having a clear understanding of consumer trends and customer
needs enables us to respond quickly to changing patterns.
