Dutch retailer Ahold has booked a decline in operating profit as investments in pricing hit margins.
The company booked an 11% increase in sales, which rose to EUR1.6bn (US$9.67bn) as its strategy to lower prices resulted in higher volumes. However, operating profit fell 3.7% in the third-quarter to EUR289m, as margins dropped to 4.1% from 4.4% due to the group’s higher investment levels.
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Net profit was hit by a EUR90m tax charge at its Scandanavian joint venture ICA, declining 46% to EUR139m, the group added.
The group also announced that Ahold board memebr James McCann will become COO or Ahold USA. In a seperate announcement, the company said that McCann would take over the duties of retiring COO Carl Schlicker in February.
