ZAANDAM, The Netherlands, Aug. 22, 2001 (PRIMEZONE) -- The Scandinavian joint venture ICA Ahold AB (NYSE:AHO) and Dansk Supermarked today announced that they have signed an agreement to jointly develop and operate discount stores and hypermarkets in Sweden and Norway. The activities, brought into a separate 50/50 joint venture, will involve discount stores under the Netto banner, which Dansk successfully operates in Denmark and pilot hypermarkets based on Dansk's Bilka format.
Background
Dansk's specific expertise in non-food, its hypermarket and discount experience complement ICA Ahold's know-how in food retailing. The new joint activities are expected to contribute positively to the already successful Scandinavian store operations: "Dansk's experience with discount stores and hypermarkets builds on our know-how in this area," said Stein Erik Hagen, Chairman of the ICA Ahold Board. "Consumers will benefit by being given additional choice how and where to shop. The Bilka hypermarkets are popular in Denmark and consumers will welcome the Netto discount stores as a strong shopping alternative. We are confident these proven store formats will fully meet their expectations."
Dansk Supermarked operates several store formats in Denmark, Germany, Poland and the United Kingdom, including the Netto discount stores, Bilka hypermarkets and Fotex supermarkets. Dansk has total sales of approximately Euro 6.3 billion.
ICA Ahold AB operates approximately 3,600 stores in Sweden, Norway, Denmark, Latvia, Lithuania and Estonia with total sales of approximately Euro 7 billion. The ICA Ahold joint venture generates considerable synergies in sourcing, store format development, IT and logistics and benefits from Ahold's significant economies of scale and international know-how.
Ahold, headquartered in The Netherlands, operates approximately 8,600 supermarkets, hypermarkets and other store formats in the United States, Europe, Latin America and Asia with annualized sales approaching Euro 65 billion. The company also has a significant presence in the US foodservice sector.
The new joint venture needs the approval of the regulatory authorities.
To view this release as attached, please click link below: http://reports.huginonline.com/831746/93470.pdf
This Royal 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 Royal Ahold's latest annual report.