A 45-4%
Peapïd
337-5%
Performance by segment
Net sales
Operating income
Sales
Retail operating income
31 www.ahold.com/reports2008
Operating and financial review
AHOLD ANNUAL REPORT 2008 18
At the same time, we are on-track with our three-year program "Project Refresh"
to remodel or replace approximately 100 of our stores. In 2008, we completed
33 remodel or replacement stores at Giant-Landover.
The following table contains operational information including net sales and
operating income for Stop Shop/Giant-Landover in 2008 and 2007:
2008
2007
Net sales in EUR (millions)
11,681
12,192
Net sales in USD (millions)
17,097
16,689
Change in identical sales (excluding gasoline sales):
Stop Shop
2.1%
0.6%
Giant-Landover
(0.5)%
(1.1)%
Change in comparable sales (excluding gasoline sales):
Stop Shop
2.4%
1.0%
Giant-Landover
(0.3)%
(0.9)%
Operating income in EUR (millions)
485
486
Operating income in USD (millions)
701
662
Operating income as a percentage of net sales
4.1%
4.0%
Underlying operating income as a percentage of net sales
4.3%
4.2%
Number of employees at year end (Headcount)
84,664
81,215
Number of employees at year end (FTE)
59,860
59,439
Sales area (in thousands of square meters)
2,086
2,060
Stop Shop/Giant-Landover also operates Peapod, LLC ("Peapod"), an online
grocery delivery service that works in partnership with the Stop Shop/Giant-
Landover operating company. Peapod also services the metropolitan areas of
Chicago, Illinois, and Milwaukee, Wisconsin. Sales are included in sales of
Stop Shop/Giant-Landover.
Net sales increased 2.4 percent in 2008 to USD 17.1 billion. The increase was
due to identical sales growth and the opening of new and replacement stores; store
closures were a partial offset. In 2008, net sales included USD 114 million of
sales to Tops. Prior to the disposal of Tops, such sales were recorded as inter
company sales.
Excluding gasoline net sales, Stop Shop identical sales increased 2.1 percent
in 2008 compared with a 0.6 percent increase in 2007. Over the full year,
Giant-Landover identical store sales growth was negative, impacted by lower
pharmacy sales. However, Giant-Landover identical sales growth was positive
in the second half of the year - the first time since 2002. During 2008,
Giant-Landover opened its first two supermarket gasoline facilities.
In 2008, operating income increased USD 39 million or 5.9 percent to
USD 701 million. The increase was largely due to higher sales and cost
efficiencies. The results included approximately USD 59 million of impairments,
restructuring and related charges, as well as gains on the sale of real estate of
USD 30 million. See Results from operations for more details.
December 28, December 30,
2008
2007
Number
Number
Store portfolio development
Stop Shop
381
376
Giant
182
184
Stop Shop/Giant-Landover
563
560
share in total
Ahold sales
Ahold (total group) €25,722m
Stop Shop/Giant-Landover €11,681m
share in total Ahold
retail operating income
Ahold (total group) €1,294m
Stop Shop/Giant-Landover €485m
Highlights: Stop Shop/
Giant-Landover
The Value Improvement Program
("VIP") was completed;
In July 2008, Carl Schlicker was
appointed President CEO of Stop
Shop/Giant-Landover;
In August 2008, Stop Shop and
Giant-Landover rebranded with new
logos and initiatives designed to
enhance the customer store
experience;
Giant-Landover completed 33 store
remodels or replacements as part of
Project Refresh.
