E-commerce

Ahold Delhaize puts its faith in e-commerce as it looks to drive growth – Grocery Dive

Summary

Dive Brief:

Ahold Delhaize expects net online sales across its grocery banners in the United States and Europe to double by 2025, officials of the Dutch retailer said Monday during the company’s 2021 investor day.
The grocery chain also projects that by 2025 its e-commerce business will be profitable on a “fully allocated” basis.
Ahold Delhaize is looking to its digital platforms to lead the way as it strives to generate 10 billion euros ($11.4 billion) in add…….

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Dive Brief:

  • Ahold Delhaize expects net online sales across its grocery banners in the United States and Europe to double by 2025, officials of the Dutch retailer said Monday during the company’s 2021 investor day.
  • The grocery chain also projects that by 2025 its e-commerce business will be profitable on a “fully allocated” basis.
  • Ahold Delhaize is looking to its digital platforms to lead the way as it strives to generate 10 billion euros ($11.4 billion) in additional sales between 2023 and 2025.

Dive Insight:

The ambitious targets Ahold Delhaize’s management team described during its investor conference reflect the company’s conviction that the increased focus consumers have placed on eating at home since early 2020 is permanent, said Frans Muller, the company’s president and CEO.

Ahold Delhaize is especially excited about its e-commerce prospects and believes that aspect of its business will account for approximately 60% of the additional revenue it plans to add to its books during the next few years, Muller said.

Automation will play a key role in Ahold Delhaize’s efforts to drive its results higher through its digital relationships with customers, Kevin Holt, CEO of Ahold Delhaize USA, said during the investor conference. The company believes that automated systems can offer productivity that is double what it sees when fulfilling click-and-collect orders, he said.

Ahold Delhaize is evaluating fulfillment technology from three retail automation vendors — Fabric, Takeoff Technologies and AutoStore — and recently opened a robot-driven e-commerce fulfillment center in Philadelphia based on AutoStore’s system.

“We have a great opportunity for us to continue to learn from that and apply it,” Holt said, adding that he does not yet know what proportion of its ecommerce sales it will eventually handle using automation.

Beyond the performance boost Ahold Delhaize hopes to generate from its intensifying investments in e-commerce, the company sees its digital operations delivering benefits across its operations, Chief Financial Officer Natalie Knight said.

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Source: https://www.grocerydive.com/news/ahold-delhaize-puts-its-faith-in-e-commerce-as-it-looks-to-drive-growth/610192/