Ahold Delhaize's Market Share Growth in Q1 2023 Highlights Trust in Local Brands

Shalmali Prakash
July 4, 2023

At a Glance

  • Ahold Delhaize has announced a solid start to the first quarter of fiscal year 2023
  • The company's focus on market share gains has remained consistent
  • One notable achievement in Q1 FY 2023 is the success of Albert Heijn, Ahold Delhaize's largest brand in Europe
  • Store modernization has played a crucial role in Ahold Delhaize's growth strategy, exemplified by the success of Food Lion
  • Through its leading local brands, the company has effectively navigated market volatility, resulting in net sales growth and increased earnings per share

Ahold Delhaize Starts Q1 2023 Strongly

Ahold Delhaize has kicked off the first quarter of the fiscal year 2023 with a bang, showcasing the trust customers place in its local brands. The company's diverse international portfolio of top local brands has offered operational flexibility, financial stability, and the capacity to manage temporary market shifts successfully. With net sales rocketing by over 6% to approximately $23.6 billion and diluted underlying earnings per share up by 10.5% to $0.66, Ahold Delhaize continues to thrive.

Maintaining Focus on Market Share Expansion

Ahold Delhaize's commitment to gaining market share remains unyielding. This focus is driving customers to consume more fresh and healthy goods, opt for the company's own brands, and engage with the expanding omnichannel ecosystem. Essential aspects of Ahold Delhaize's strategy, including understanding customers in-depth, delivering attractive customer propositions, and launching scalable innovative platforms, underpin its ongoing success. The integration of real-time data amplifies the customer experience and quickens the innovation pace, affording the company a substantial competitive edge.

Albert Heijn: A Noteworthy Success Story

Albert Heijn, Ahold Delhaize's primary European brand, significantly marked its success in Q1 FY 2023. In spite of the Netherlands grappling with 18% inflation, Albert Heijn adeptly altered its assortment. By enlarging its Price Favorites range, the brand provided high-quality, affordable private label offerings. Moreover, the introduction of new technology for dynamic pricing and markdowns, relying on integrated processes and machine learning, not only enhanced the brand but also helped in food waste reduction.

Building Robust Digital Customer Relationships

Ahold Delhaize is making considerable progress in nurturing deeper digital relationships with customers. As CEO Frans Muller emphasizes, an all-inclusive, fully integrated digital shopping experience is now a necessity. The company's robust foundation in this area is manifesting itself in several ways. For instance, the loyalty programs at Giant Food, Food Lion, and Stop & Shop received recognition as among America's Best Loyalty Programs by Newsweek in 2023.


Food Lion: A Testament to Store Modernization

Store modernization is a key driver in Ahold Delhaize's growth strategy, as evidenced by Food Lion's success. The store's modernization plan from 2014 to 2021 led to 42 successive quarters of comparable store sales growth. Food Lion's new remodel wave prioritizes sustainability and aspires to maintain its status as an Environmental Protection Agency Energy Star Partner of the Year.

Prioritizing Sustainability

Ahold Delhaize's dedication to sustainability reflects in its collaborations with industry peers and its pursuit of external validation. Albert Heijn and are sharing their best practices and programs with other companies, promoting animal welfare and environmental sustainability, and assisting sales partners in cutting their carbon footprint.

Affiliating Supermarkets for a Sustainable Future

Ahold Delhaize has endorsed Delhaize Belgium's plan to affiliate all 128 existing owned supermarkets in Belgium. This strategic move is designed to guarantee a sustainable future for Delhaize in Belgium, reflecting changing consumer behavior and local presence.

Wrapping Up Q1 FY 2023: A Story of Success and Innovation

In conclusion, Ahold Delhaize's robust start to Q1 FY 2023 emphasizes its market share growth and innovative achievements. Through its foremost local brands, the company adeptly maneuvers through market volatility, leading to net sales growth and increased earnings per share. Emphasizing customer-centric strategies, engaging with digital transformation, and prioritizing sustainability, Ahold Delhaize bolsters its retail industry positioning. With accomplishments in product range expansion, personalized offerings, store modernization, and sustainability initiatives, the company remains committed to delivering customer value and shaping a sustainable future for its brands.