Market overview
Macro trends
Lifestyle trends
Industry trends
With our Reshaping Retail strategy we
are getting ahead of these trends
Governance
Ahold at a glance I Business review
Our Reshaping Retail strategy is built around
addressing the trends that are most important
to our customers and our business.
Economics
The macroeconomic situation in our markets is
improving. Purchasing power - especially in the
middle income groups of our core customer base
- is recovering. However, shoppers continue to be
focused on value, price and promotions. To help our
customers, we continuously work to lower our cost
base as part of our Simplicity pillar, so that we can
invest in price, value, and the products and services
we offer.
Demographics
We are seeing limited population growth in our
markets and an aging consumer base. There is
increasing diversification, not only of ethnicity but
also in other areas, including: household composition,
affluence and urban versus suburban. For us, this
presents new opportunities to diversify our offering to
best meet the needs of local communities, becoming
both a better place to shop and a better neighbor.
Convenience
Many of our customers have busy lifestyles and
increasingly demand convenience. They want food
that is easy to prepare, personalized offers and a
convenient, flexible shopping experience. As part of
our "broadening our offering" pillar and to ensure we
fulfill these customer needs, we offer, among other
things, an increasing range of convenience meals
and fresh-cut produce, as well as multiple delivery
options for online orders.
Health and well-being
Customers are increasingly aware of the positive
impact of food on a healthy lifestyle. They are also
becoming more knowledgeable about lifestyle-
related diseases, allergies, and other health
conditions that may be affected by diet. Through our
recipes (both in-store and online), our broad Fresh
offering, and our increasing focus on providing health
advice through dietitians in our U.S. stores, we have
an opportunity to help customers make healthier
choices, while giving them access to affordable
products that are good for them and their families.
This makes us both a better place to shop and a
better neighbor.
Transparency and sustainability
Food is safer than ever today, and customers have
a greater interest in what they eat and where it
comes from. People are increasingly aware of the
impact they can have on society and the environment
through their buying decisions. They want retailers
to help them make responsible decisions, and rely
on them to ensure the integrity of the supply chain
where possible. Our new Albert Heijn Organic
range makes it easier for our customers to make
such decisions.
Connection and communities
People are increasingly searching for a feeling of
community and personal connection. They find this
not only in their local neighborhoods, but also through
social media and online and off ine communities
around common interests. Retailers have a unique
opportunity to connect individuals and communities
in many ways - whether that is through community
centers based in stores, or through the personal
relationships they build with customers in an online
environment. The MyBonus program at Albert Heijn is
a prime example of this kind of personal relationship
building, aimed at increasing customer loyalty.
Competition
We are seeing increasingly diversified competition,
both on the premium and discount ends of the retail
spectrum, and new competition from outside of the
traditional food retail industry. Customers are dividing
their shopping trip over multiple stores for specific
shopping needs or occasions. Retailers continue to
evolve as consumers also diversify and change the
way they shop, both online and offline,
Online and mobile
Grocery e-commerce is still a relatively small part
of the overall retail food market, but it is growing
rapidly. Online will be a key component of growth
for retailers in years to come. Mobile apps are
creating new opportunities for sales growth and an
improved customer experience in online shopping.
Customers are more in control of the shopping
experience than ever, with more product information
at their fingertips and the ability to match prices while
they shop. With our existing online business and
strategic focus on online retail under our "broadening
our offering" pillar, we are well-positioned to capture
this opportunity further in the coming years.
We are working to provide quality products at
affordable prices for our value-focused customers.
We are making continuous innovations in our
assortment, to offer the right products, including a
wide range of fresh, healthy and responsible choices.
Our own-brand ranges are helping us do this, while
building loyalty to our brands. We have friendly and
helpful associates of many different backgrounds
to welcome our diverse customer base. And our
omni-channel offering enables people with busy
lifestyles, or those who are less mobile, to still benefit
from our quality products, brought to them through
new delivery channels.