115
Group performance
Properties
-
The Company's retail
locations range in size
from 20 to over 10,000
square meters.
increase of stores for our
continuing operations
31 www.ahold.com/reports2008
Operating and financial review
AHOLD ANNUAL REPORT 2008 16
At the end of 2008, we operated 2,897 stores, excluding the stores of our joint
ventures ICA and JMR. This was a net increase of 115 stores for our continuing
operations.
December 28,
Opened/
Closed/ December 30,
2008
acquired
sold
2007
Stop Shop/Giant-Landover
563
13
10
560
Giant-Carlisle
148
4
1
145
Albert Heijn
1,861
132
27
1,756
Albert/Hypernova
325
5
1
321
Divested businesses - Schuitema
0
443
443
Total
2,897
154
482
3,225
Franchisees and associates operated 783 of the stores, 477 of which were owned
or leased independently from Ahold. Of the 2,416 locations that Ahold leases or
has an ownership interest in, 66 percent had operating leases, 20 percent were
company-owned, and 14 percent had finance leases and financings in which
Ahold does not have a legal title. Ahold's stores range in size from 20 to over
10,000 square meters.
We also operated the following other properties as of December 28, 2008:
Warehouses/distribution centers/production facilities/offices 63
Properties under construction/development 70
Investment properties 786
Total 919
Of these other properties, 53 percent had operating leases, 40 percent were
company-owned, and 7 percent had finance leases and financings in which
Ahold does not have a legal title.
The 786 investment properties consist of buildings and land. 92 percent of these
properties were subleased to third parties. The majority were shopping centers
containing one or more Ahold stores and third-party retail units generating rental
income. In 2007, Ahold completed a review of its global real estate portfolio.
The review concluded that the majority of Ahold's investment property has
strategic importance for operating purposes and will remain in the portfolio;
the non-strategic assets were to be sold in subsequent years, with estimated cash
proceeds of approximately EUR 100 million. The majority of this EUR 100 million
was realized in the course of 2008, and we expect the remaining part of the cash
proceeds in 2009.
Capital expenditures of EUR 1,128 million in 2008 and EUR 979 million in 2007
were primarily related to the construction, remodeling and expansion of stores and
supply chain infrastructure improvements. The increase from 2007 was primarily
due to investments in remodeling stores into the new Albert Heijn format in the
Netherlands, including 54 stores that were transferred from Schuitema to Albert
Heijn; remodeling at Stop Shop/Giant-Landover, including the remodels related
to Project Refresh, the three-year investment plan announced in October 2007 to
remodel approximately 100 Giant-Landover stores; and store remodels in the
Czech Republic.
