ZAANDAM, Netherlands, Jan. 8, 2003 (PRIMEZONE) -- Ahold (NYSE:AHO), the international food retailer and foodservice operator, today announced that four of its U.S. retail companies are further restructuring their back-office operations.
Giant-Carlisle and Tops will pursue further integration of their merchandising and administrative functions, accelerating a process that began two years ago with the announcement of a shared services arrangement between the two companies. BI-LO and Bruno's will begin the process of restructuring selected business and administrative functions. This reorganization at four of Ahold's six U.S. retail companies will strengthen customer focus, reduce costs and better position each of them to compete in today's marketplace.
"There will be little or no impact on store operations as all four companies will continue to operate their respective brands," said Bill Grize, Ahold Corporate Executive Board member and President & CEO of Ahold USA Retail Operations. "The competitive benefits will be the efficiencies and economies of scale offered by streamlining activities in ways which don't affect our customers."
A competitive and secure future
"In order to ensure the quality of our plans, we will be involving many of our people in developing the details and implementing the changes," Grize continued. "We remain committed to understanding and meeting the needs of our local customers, and we will work carefully to ensure that we do so. Ultimately, we expect these changes to result in a more competitive and secure future for the vast majority of our associates, and a better shopping experience for our customers."
Ahold's U.S. retail operations
Ahold operates over 1,600 stores grouped in six retail operating companies along the U.S. eastern seaboard: Stop & Shop, Giant-Landover, Giant-Carlisle, Tops, BI-LO and Bruno's. Sales from these operations amounted to USD 26.3 billion in 2002.
Editors' note:
Profiles of the four Ahold subsidiaries concerned
BI-LO, headquartered in Mauldin, SC, operates 303 supermarkets under the BI-LO and FoodSmart banners and 140 Golden Gallon convenience stores in the Carolinas, Georgia and Tennessee. President & CEO Dean Cohagan will also serve as President & CEO of Bruno's, leading the restructured organization.
Bruno's, based in Birmingham, AL, is a regional supermarket chain with 188 stores in Alabama, Florida, Georgia and Mississippi under the Bruno's, Food World, FoodMax and Food Fair formats. President & CEO Jim Demme has decided to leave the company after five years at the helm.
Giant Food Stores, headquartered in Carlisle, PA, operates 113 supermarkets under the Giant and Martin's banners in Pennsylvania, Maryland, Virginia and West Virginia. President & CEO Tony Schiano will co-lead the restructured organization together with his counterpart at Tops.
Tops, headquartered at Williamsville, NY, operates 156 stores throughout New York, Ohio and Northern Pennsylvania. The chain also operates 206 convenience stores throughout New York under the Wilson Farms, Tops Express and Sugar Creek banners, as well as nine B-Kwik Markets. President & CEO Frank Curci will co-lead the restructured organization together with his counterpart at Giant-Carlisle.
Ahold update
With 2002 consolidated sales of Euro 72.7 billion, Ahold implements a multi-format strategy focused on meeting the needs of 40 million customers every week in currently 27 countries on four continents. A close network of food retail and foodservice companies provide a superior shopping and service experience in the local market place. Under their own local brand names, Ahold companies operate approximately 9,000 supermarkets, hypermarkets and convenience stores in the U.S., Europe, Latin America and Asia. Ahold also has significant foodservice activities in the U.S. and in three European countries.
This Ahold press release contains "forward-looking statements". Actual results may differ from such statements as they may have been influenced by factors beyond the company's ability to control, as more fully discussed in the company's annual report.