Dutch retailer Ahold today (20 October) insisted that it saw “great” volume growth across its banners, despite the negative impact that deflation and price investments had on the company’s third-quarter net sales.
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Net sales gains were weaker than expected, rising 4.3% to EUR6bn (US$8.98bn).
Deflation and price investments weighed on the group’s results, a spokesperson for the company told just-food.
“We experienced deflation in the US and Europe. When you look at the impact on ID sales the negative pressure is partly due to deflation and partly due to price mix and promotion,” the spokesperson said. “Consumers have also remained focused on price and we have seen continued down-trading, which has meant that the basket value of a shop has dropped.”
However, the spokesperson insisted that pricing investments are paying off.
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By GlobalData“We have improved our price position relative to our competitors,” she said.
Additionally, the spokesperson emphasised that Ahold has seen stronger volume growth, which strips out the impact of lower prices.
“Volumes have been positive across all our banners. Albert Heijn saw its highest volume uplift this year and we are very pleased with that. We saw great volume uplift at Carlisle and a significant increase at Landover.”
