Market overview
Macro trends
Retail is in an exciting phase:
the world around us, consumer
needs and the overall industry
are changing fast. Our Better
Together strategy is designed
to make sure our brands can
turn these shifting trends and
challenges into opportunities to
attract new customers and keep
earning the loyalty and trust of
the customers who shop with
us today.
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Economics
Customers are very focused on value. In the
past year, some notable events in the political
world impacted our market areas, including
the Brexit referendum in June, when UK
citizens voted to leave the EU - which could
impact the future European economy, trade
partnerships and international businesses,
and the culmination of the presidential
election in the U.S. in November. While the
U.S. economy will most likely outpace other
advanced economies in terms of GDP, we do
see competition intensifying as a consequence
of the price investments retailers are making to
attract value-focused customers. Although the
2017 growth prospects for Europe remain
relatively stable, the outcomes of the elections
in France, Germany, Italy and the Netherlands
and their unknown policy implications will most
likely influence Europe’s economic conditions.
Demographics
We continue to see population growth slowing
down in our markets, especially in Europe, and
an aging consumer base. The communities we
operate in are becoming increasingly diverse
in terms of ethnicity, household composition,
affluence and urban versus suburban.
Resource availability
With a changing climate and growing global
demand for food, natural resources are
increasingly under stress. The increasing
scarcity of natural resources such as water and
soil nutrients will continue to impact agriculture
and affect how we source products in the
future. Since commodities like corn, wheat
and rice are at the core of the products we
sell, “commodity crunches” could substantially
impact our businesses.
Technology
Unprecedented technological change is
underway across the globe - and it has
direct implications for the retail industry.
Everyday objects in people’s homes, such
as televisions, refrigerators and personal
wearables, are getting connected to the
Internet, and are measuring and generating
data. This data enables companies to build
more intimate relationships with shoppers by
understanding their personal preferences and
being able to cater to them - or even predict
new ones. It also makes possible artificial
intelligence and automated devices such as
self-driving cars and delivery drones.
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