As so much talk within the grocery industry is centered around Amazon, Walmart, and a certain pending mega-merger aiming to compete with them, one grocery giant—Ahold Delhaize—is finding value in smaller, regional chains.
“We think retail is local,” Ahold Delhaize CEO Frans Muller told Retail Brew. “We think it gives a lot of ownership and accountability and engagement to local management to run the brand, be responsible, breathe the brand.”
In the US, the company owns Mid-Atlantic and Southeast chain Food Lion; Mid-Atlantic grocers Giant Food and The GIANT Company; and Northeast banners Hannaford and Stop & Shop. Some of these chains are solid, as Food Lion and Hannaford recently notched 47 and 12 quarters of positive sales growth, respectively, while Stop & Shop is shuttering 32 underperforming locations.
Ahold Delhaize is working to restore growth across all of its banners, in May unveiling its “Growing Together” strategy outlining goals it aims to achieve by 2028. These include growing its Own Brand to become 45% of total store sales, pushing for “more pronounced” organic store growth for its banners, and steadying its struggling Stop & Shop.
Speaking with Retail Brew at Groceryshop, Muller shared details on these efforts and the challenges they entail.
Keep reading here.—EC
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