BsimEiHHta
Market overview
26
Macro trends
Consumer trends
Industry trends
We continue to get ahead
of these trends
Ahold at a glance I Business review I Governance I Financials I Investors
Our Reshaping Retail strategy capitalizes on industry
trends to ensure continued success in our markets.
While we continue to face strong competition
everywhere we operate, our strategy enables us
to turn changing consumer shopping habits and
preferences into opportunities to increase loyalty
to our brands.
Economics
The macroeconomic situation in our markets has
improved in 2015. In general, purchasing power
has recovered from the impact of the post-2008
economic crisis. However, this recovery is not
evenly distributed across households of different
income levels. Middle income groups remain under
pressure, especially in our U.S. markets. This means
that shoppers remain focused on value, price and
promotions. Therefore, we are constantly looking for
ways to save costs, through our deeply ingrained
Simplicity mindset, so that we can invest in price,
value, and the products and services we offer
to our customers.
Demographics
In recent years, we have seen limited population
growth in our markets, particularly in Europe, and
an aging consumer base. The communities we
serve are increasingly diversified, not only in terms of
ethnicity but also in other areas, including: household
composition, affluence and urban versus suburban.
This continues to present new opportunities for us
to diversify our offering to best meet the needs of
local communities and become both a better place
to shop and a better neighbor.
Technology
As in other sectors, technological developments are
having an enormous impact on retail. The ubiquity
of smart phones and real-time access to information
gives us the opportunity to serve our customers in
new ways. It also enables us to build more intimate
relationships with shoppers, both in our stores and
online, based on understanding their personal
preferences and being able to cater to them -
or even predict new ones.
Value
Our customers shop with us because they value
our product quality and the great service we offer.
At the same time, they expect - and we promise
them - good prices and exciting promotions.
With online and mobile technology enabling our
customers to quickly and easily compare prices,
being able to offer attractive prices for the products
we sell is critical.
Convenience
Many of our customers have busy lifestyles and are
short on time. They want food that is easy to prepare,
personalized offers and a convenient, flexible
shopping experience. As we work to broaden
our offering to fulfill these customer needs, we are
expanding our range of convenience meals and
fresh-cut produce, and providing multiple delivery
options for online orders.
Health and well-being
Society increasingly acknowledges the impact of
food on our health. In recent years, customers have
become more aware of and more knowledgeable
about the relationship between diet and overall health
and well-being. Through our recipes (both in-store
and online), broad Fresh offering, healthy meal
solutions and increasing focus on providing health
advice through the pharmacies and dietitians in our
stores and online, 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.
Ahold
Annual Report 2015
Transparency and sustainability
Today, our food is safer than ever before.
At the same time, people have a greater interest
in what they eat and where it comes from.
They are increasingly aware of how their buying
decisions can impact the environment and people's
lives all over the world. They want retailers to help
them make responsible choices, and to ensure the
integrity of the supply chain wherever they can.
Our Nature's Promise range in the U.S., Albert
Heijn Organic range in the Netherlands and Albert
Organic range in the Czech Republic all make
it easier for our customers to buy responsibly.
Connection and communities
People everywhere are searching for a feeling
of community and personal connection - sometimes
in traditional ways, through involvement in their
local neighborhoods, and sometimes in new ways,
through social media and online communities.
They are looking to connect with other people
who have common interests and common values.
Retailers have a unique opportunity to connect
individuals and communities through the role we
play in their everyday lives. For example, we do
this through community centers based in our stores,
and through the personal relationships we build
with our online customers. The MyBonus program
at Albert Heijn is a prime example of this kind of
personal relationship-building, aimed at increasing
customer loyalty,
Competition
Over the past year, the competition in our markets
has continued to diversify. Both on the premium
and discount ends of the retail spectrum, we see
competitors striving to gain share in a market where
customers increasingly do their shopping at multiple
food retail brands in multiple segments of the market.
Retailers continue to evolve as consumers change the
way they shop, both online and offline, and as their
expectations of the personal offerings and shopping
experiences grow.
Online and mobile
Grocery e-commerce is a growing, though still
relatively small, part of the overall retail food
market. Online and mobile shopping will be a key
component of growth for retailers in years to come,
creating opportunities for innovative service models
but also posing potential challenges in terms of
profitability. Customers are more in control of the
shopping experience than ever, with easy access
to product information and the ability to compare
products and prices as they shop. With our existing,
fast-growing online business and strategic focus
on e-commerce and digital connectivity we are
well-positioned to capitalize on future opportunities
in this area.
Through our Reshaping Retail strategy, we are
working to provide quality products at affordable
prices for our value-focused customers. We continue
to get better at experimenting, learning, and moving
fast to implement new ideas. This is enabling us
to innovate more rapidly to offer customers the
right products and assortment, including a wide
range of fresh, healthy and responsible choices.
Our own-brand ranges help us to offer customers
the selection and value they demand, while
building loyalty to our brands. Our diverse teams
of friendly and helpful associates create a welcoming
shopping environment for our diverse customer base.
We continue to develop our customer proposition by
renewing our assortment and improving our stores,
online interfaces, supply chain and logistics.
