Ahold Delhaize is seeking to drive omnichannel loyalty sales penetration to more than 80% by 2028 and increase the share of private-label sales to 45% of its total assortment, as part of a series of measures announced at its 2024 Strategy Day.
During the period from 2025 to 2028, the Dutch retail group aims to achieve a net sales CAGR of 4%, as well as maintaining underlying operating margins averaging 4%.
Other measures announced by the group include a doubling-down on its sustainability ambitions and achieving a workforce that is ‘100% gender balanced, 100% reflective of our communities and 100% inclusive.’
Growing Together
The measures announced on the day form part of Ahold Delhaize’s ‘Growing Together’ strategy.
“We have taken a multi-stakeholder approach to developing this new strategy, ensuring we balance the needs of our customers, the people we work with, and broader societal dimensions,” commented Ahold Delhaize chief executive Frans Muller.
“‘Growing Together’ ensures we will stay at the forefront of innovation in healthy foods, omnichannel experiences, and supply chain transformation, serving customer needs through a well-invested and future-focused foundation. I am encouraged by the numerous avenues we have across our great local brands to realise our growth potential.”
Earnings Per Share
Through these measures, the group, which has retail interests in both Europe and the United States, is confident that it will grow underlying earnings per share at a high single-digit CAGR, compared to 2024, and generate €9 billion in free cash flow, as well as increasing dividend per share on an annual basis.
“By focusing on the things we do exceptionally well, we are together committed to fulfil these ambitions,” Muller added. “By taking bigger steps, investing in our people and leveraging technologies, we are excited to unlock our purpose.”
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