32
Ahold
USA
4.9%
.6%
Highlights of the year
Net sales
Operating income
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Financials
Investors
Performance by segment continued
Sales million)
2011 I
18,026
2010
Identical sales growth
Contribution to Group sales
Operating income million)
The Ahold USA divisions continued to grow sales and Ahold USA increased market share
The Ahold USA divisions intensified their Gas Reward programs through a partial re-launch
and expansion to more stores, bringing additional savings on gas to loyal customers
Ahold USA further strengthened its own-brand offering
Stop Shop New England opened a new concept supermarket in Chelmsford, Massachusetts
Stop Shop New York Metro acquired five stores in the New Jersey Shore area and three on
Staten Island
Giant Landover celebrated 75 years in the business
Giant Carlisle opened its first store in the city of Philadelphia and introduced a new, smaller
format supermarket
New technology tools were launched to make shopping easier, including a mobile application
at Stop Shop and Giant Landover that lets customers view their circular, loyalty card account
and more using their smartphones
Peapod expanded into Philadelphia, in partnership with Giant Carlisle, and increased its
footprint in Manhattan
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 and
financial information, including net sales and operating income, for Ahold USA in 2011 and 2010:
2011
2010
2010
714
Net sales in millions
Net sales in millions
18,026
25,072
17,783
23,523
A 00/ On an underlying
^4.3 basis
Change in identical sales
Change in identical sales (excluding gasoline sales)
Change in comparable sales (excluding gasoline sales)
4.9%
2.9%
3.1%
1.5%
0.4%
0.8%
Number of stores (at year end)
2011
2010
Operating income in millions
Operating income in millions
734
1,021
714
941
Stop Shop New England
Stop Shop New York Metro
Giant Landover
Giant Carlisle
217
183
173
183
217
175
179
180
Operating income as a percentage of net sales
Underlying operating income as a percentage of net sales
4.1%
4.3%
4.0%
4.2%
Ahold USA
756
751
Number of employees at year-end (in thousands headcount)
117
116
Number of employees at year-end (in thousand FTEs)
82
881
Sales area (in thousands of square meters)
2,893
2,838
1 The number of employees (FTEs) at year-end 2010 includes an increase of 6,000 full-time employees in order to correct the
number disclosed in Ahold's 2010 Annual Report.
In 2011net sales increased to $25.1 billion, a 6.6 percent rise. Identical sales, excluding
gasoline, increased 2.9 percent in 2011Ahold USA continues to grow in a competitive market by
offering quality products and services and running effective promotional activities. During 2011
the company succeeded in growing market share in most of its markets.
In 2011, operating income increased $80 million or 8.5 percent to $1,021 million. Gross profit
margins across Ahold USA were impacted by product cost inflation that was not fully passed
through to retail prices. In a promotional market, the Ahold USA divisions also focused on
promotions. Successful operational cost saving initiatives offset these impacts. Results were
impacted by $16 million in transition costs and $21 million in restructuring and related charges,
the majority of which resulted from the restructuring of Ahold USA's organization. Impairment
charges were $30 million and gains on the sale of assets $5 million, as discussed in Results from
operations under Group performance.
