US-based food retailer and supermarket chain Ahold has reported a considerable rise in operating income from USD174.72 million to USD1.61 billion in 2008. Retail operating income of the company has amounted to USD1.52 billion and net sales rose 3.3 per cent to USD34.54 billion during the period. However, net income of the company declined by USD2.55 billion to USD1.48 billion, according to Planet Retail.
“In 2008, we have completed the Value Improvement Program including the re-branding of Stop & Shop and Giant-Landover. This strengthened our relative price position and led to market share gains and improved financial results in the second half of the year,” quoted John Rishton, CEO, Ahold in the report.
“Although the economic environment continues to deteriorate, we believe that the business is well prepared to respond to the effects of recession. We have a strong balance sheet and we have repositioned our businesses over recent years to give better value to our customers. As a business, we have the skills and capabilities to respond quickly and effectively to changes in consumer behaviour. Despite the continued deterioration of the economic environment, in the first weeks of 2009 we have seen no significant changes in consumer behaviour,” further quoted Rishton in the report.
— IndiaRetailing Bureau