ZAANDAM, THE NETHERLANDS - As the online market for grocery continues to intensify, Ahold Delhaize recently told the Wall Street Journal that it is looking to stabilize its position in the e-commerce aspect of U.S. business. This move includes consolidating separate online platforms operated by its various stateside banners, including Stop & Shop and Giant Food, which were formed before their parents’ merger.
This unified presence, Chief Financial Officer Jeff Carr told CFO Journal, is planned to be under Peapod’s delivery service.
“We will be integrating the platform with the stores and our loyalty cards,” Carr said, according to WSJ, adding that the retailer is considering opportunities related to technology and e-commerce. “We will keep our eyes open for acquisitions and partnerships.”
While the company declined to tell the news source how much it could spend on the transformation of its U.S. online business, Carr stated that there are “some synergies” from the 2016 merger that can be used for just that. The company said previously it expects €500 million (approximately $570 million) of net synergies until 2019.
Ahold Delhaize just released the results for its second quarter of fiscal 2018, showing growth in the Netherlands but -0.1% sales growth in the U.S., which it adjusted to 1.0% adjusted for the timing of Easter, according to CEO Frans Muller, who added plans for innovation and a revamp of the Stop & Shop banner in addition to the plans for partnering with Peapod.
"As part of these investments, we have announced the launch of Peapod Digital Labs, which will drive innovation, expertise and accelerate growth by creating a shared e-commerce infrastructure for all of our brands in the United States,” Muller commented. “We look forward to provide more detail on this at our Capital Markets Day on November 13 in New England. In addition, we will be sharing our exciting initiatives to update the Stop & Shop brand, our largest business in the United States, with a fresh new format which will be launched later this year."
AndNowUKnow will follow this and other retail growth strategies influencing fresh produce in the U.S. and beyond.
