NETHERLANDS: Ahold to up cost cuts to fuel investment
By Michelle Russell | 29 November 2012
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Ahold said it is "very pleased" with the progress it is making on its strategy |
Dutch retailer Ahold has said it will step up its moves to cut costs in a bid to fuel further investment in the business.
Ahead of a meeting with analysts in the US, the group said it will up its cost savings from EUR350m (US$454.7m) to EUR600m by looking at sourcing and promotional expenditures. The retailer said the move would help it provide a "better offering and value" for its customers.
Ahold, which runs the Albert Heijn chain in the Netherlands and stores including Giant Food in the US, announced plans to cut EUR350m in costs last year. The move was part of a six-part strategy to grow the business, which also included expanded its online operations and opening more convenience stores.
The analyst meeting in the US this week is designed to give an update on the strategy.
The company noted it will continue to "refresh and update" its existing store base, in addition to investing further in its online offering to boost growth at US online arm Peapod and Dutch businesses albert.nl and bol.com, and expand its home delivery service.
Ahold said it will also increase test pick-up points in its major markets in 2013 and expand the option for customers to pick up their bol.com products in almost all Albert Heijn stores.
Sectors: Financials, Multichannel, Retail
Companies: Ahold
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NETHERLANDS: Ahold to up cost cuts to fuel investment
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