Expanding our
geographic reach
Simplicity
Our strategic pillars (continued)
Our progress in 2013
Our progress in 2013
Ahold at a glance
Our strategy
Our performance Governance
Financials
Investors
r
Ahold Annual Report 2013 31
K We opened a total of 84 new stores in
current markets.
K Albert Heijn Belgium continued to perform
well, and opened eight new stores, bringing
the total to 19.
K Albert Heijn converted 24 former C1000
stores to its network, bringing the total
converted stores to 39.
K We opened two Albert Heijn to go
convenience stores in Germany, bringing the
total to five.
K We delivered over €290 million in cost
reductions and efficiency improvements
during the year. By the end of 2013, we were
ahead of plan on our three-year (2012
2014) €600 million cost savings program,
having delivered a total of approximately
€480 million in savings, the majority of which
was reinvested in our customer offering.
K In 2013, all our businesses continued their
successful cost savings programs, with
project streams focusing on commercial
improvements (approximately 60%
of savings), operational efficiencies
(approximately 30% of savings) and overhead
reduction (approximately 10% of savings).
K Pharmacy sourcing improvements at Ahold
USA generated $19 million in savings.
K Efforts to reduce own-brands cost-of-goods
at Ahold USA delivered over $30 million in
savings, and another $30 million of savings
were realized in not-for-resale sourcing.
K We improved productivity in store operations
by optimizing processes, better utilizing
tools to schedule labor more efficiently and
improving communication and performance
management across our stores, particularly
in the U.S. The U.S. divisions generated
over $62 million in savings from productivity
improvements in 2013.
K We increased the effectiveness of our
promotions through improved analytics
($34 million of savings).
K Our businesses in Europe saved €65 million
through improved sourcing of own brands
and not-for-resale goods, and by optimizing
the fresh value chain.
K We increased the efficiency of our core
operational processes in the Netherlands,
delivering €17 million in savings.
K Our businesses in Europe simplified and
streamlined general and administrative (G&A)
functions, delivering €27 million in savings.