17
Group performance
In 2011, we continued to deliver solid financial
results despite a challenging market environment.
We put the customer first, offering good value,
the right assortment, and innovative products
and services.
Overview
Governance
Financials
Investors
We delivered another year of solid performance in 2011. We further gained market share in the
United States, while our share in the Netherlands remained stable.
Net sales in 2011 were €30.3 billion, up 2.5 percent compared to 2010. At constant exchange
rates, net sales grew 5.5 percent. Our operating income was €1.3 billion and our underlying retail
operating margin was 4.8 percent.
Customers remained cautious in their spending and focused on value in an environment of
increased inflation and intense promotional activity. We successfully adapted to the challenging
market conditions by managing the balance between sales and margins.
We were able to mitigate gross margin pressure through rigorous cost control and by the end
of the year, we were ahead of schedule towards completion of the €350 million 2010-2012 cost
savings program. To continue to invest in providing value to our customers, we announced a
new €350 million three-year cost savings program for 2012-2014.
We are focused on accelerating the Company's growth by further developing and rolling out our
successful store formats, building our online business, and expanding our geographic reach.
In 2011Albert Heijn entered the Belgian market by opening two stores. In 2012, we plan to enter
Germany with a convenience format. By 2016, we plan to operate a minimum of 50 supermarkets
in Belgium and open 150 new convenience stores in Europe. Ahold USA further strengthened its
footprint with the acquisition of five Foodtown and three King Kullen stores in the Stop Shop
New York Metro division's market area, as well as two Genuardi stores in Giant Carlisle's market
area. In early 2012, we announced the acquisition of an additional 16 Genuardi supermarkets in
Giant Carlisle's market area. In the Czech Republic, where we further improved our performance
through an enhanced commercial proposition and lower cost base, we launched a new compact
hypermarket format that we will use to remodel 50 of our large stores over the next five years.
