Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News
Sponsored By
Ahold Delhaize’s Q1 gets boost from 17.9% jump in online salesAhold Delhaize’s Q1 gets boost from 17.9% jump in online sales
But profit margins are being pressured by price investments and lower-margin sales in pharmacy and ecommerce
Mark Hamstra
May 7, 2025
3 Min Read
The company’s U.S. banners have expanded the accessibility of their same-day delivery options with additional click-and-collect locations, more time slots, and a partnership with DoorDash.Ahold Delhaize
Ahold Delhaize said Wednesday that double-digit gains in online sales helped drive overall U.S. sales growth in the first quarter, despite a drag on revenues from the closure of 32 underperforming Stop & Shop locations last year.
U.S. sales were up 1.8% for the quarter, to about $14.7 billion, compared with the year-ago first quarter. In addition to a 17.9% increase in online sales, led by a strong performance at Food Lion, the company’s U.S. division also recorded comparable-store sales gains of 3.1%, excluding gasoline. Strong pharmacy sales and a 0.5 percentage-point increase from calendar shifts and weather fluctuation also boosted the comp-store sales number, the company said.
The growth in lower-margin pharmacy and online sales had a negative impact on underlying operating margin in the U.S., however. Underlying operating margin was 4.4%, down 0.3 percentage points in part due to the dilutive impact of the increased pharmacy and online sales and also because of price investments in the U.S.
Giant Food expanded its “Fresh Low Prices” initiative in Q1, lowering prices on hundreds of private-label products, the company said. Stop & Shop, meanwhile, rolled out value campaigns and lowered prices at more than 40% of its stores.
Ahold’s investments in online sales pay off
Frans Muller, president and CEO of Ahold Delhaize, said the company’s U.S. banners, which also include Hannaford and Giant Food, have expanded the accessibility of their same-day delivery options with additional click-and-collect locations, more time slots, and a partnership with DoorDash.
“This was a major competitive advantage during the winter storms in early 2025, when our U.S. brands were well positioned to facilitate the rise in customer demand,” he said in a conference call with analysts.
More details: Total company sales up 5%
Ahold Delhaize reported company wide Q1 sales of 23.3 billion euros ($26.4 billion at current exchange rates), a gain of 5% over year-ago results. The increase was driven in part by the acquisition of Romanian grocer Profi Rom Food SRL, which boosted sales by 2.9%, partially offset by a 1% decrease due to the closure of the underperforming Stop & Shop locations and the cessation of tobacco sales in the Netherlands and Belgium
Net income increased 5.1% at constant exchange rates, to 554 million euros ($628 million U.S., at current exchange rates). Overall underlying operating margin was 3.8%, down 0.2 percent points at contact exchange rates as a strong performance in Europe was offset by price investments in the U.S.
Ahold Delhaize overall online sales increased by 13.7% in Q1, including a 10.1% gain in Europe, at constant exchange rates
The closure of the underperforming Stop & Shop stores, which was completed in 2024, is expected to reduce 2025 sales by between $550 million and $575 million
Outlook for 2025: “Volatility in the macro environment”
The company reiterated its 2025 full-year outlook, including underlying operating margin of about 4% and mid- to high-single-digit underlying earnings-per-share (EPS) growth, depending on the U.S. dollar/euro exchange rate
“Although there is a lot of volatility in the macro environment, with tariffs and fluctuations in exchange rates, we maintain our guidance for the year, albeit with a potential impact on EPS results due to the impact of currency translation,” said Muller.
About the Author
You May Also Like
