Thursday, July 25, 2024

Ahold Delhaize’s Key Goals and Strategy for 2025-2028

1. Outperform the Market
  • Sales Growth: Target a 4% annual increase in net sales.
  • Profit Margins: Maintain leading profit margins of 4%.

2. Save Costs and Invest Smartly

  • Customer Savings: Achieve €5 billion in savings to offer better prices and services.
  • Capital Spending: Invest 3% of net sales in capital projects.
  • Earnings Growth: Increase earnings per share by high single-digit percentages.

3. Reward Shareholders

  • Free Cash Flow: Generate €9 billion in free cash flow after taxes.
  • Share Buybacks: Spend €1 billion annually on share buybacks.
  • Dividends: Increase dividend payments each year.

4. Diversify Income Sources

  • New Revenue Streams: Earn €3 billion from new income sources by 2028.
  • Own Brand Products: Increase sales of own brand products to 45% of total sales.

5. Enhance Omnichannel Strategy

  • Loyalty Program: Achieve 80% sales from loyal omnichannel customers by 2028.
  • Active Users: Reach 30 million monthly active users by 2028.

6. Focus on Sustainability and Inclusivity

  • Reduce Emissions: Meet short-term and long-term emission reduction targets.
  • Inclusive Workforce: Ensure a 100% gender-balanced, inclusive workforce that reflects our communities.

Key Strategic Priorities

1. Improve Customer Value

  • Strengthen loyalty programs to offer better deals and options.
  • Boost sales of own brand products and improve pricing strategies.

2. Expand Market Presence

  • Grow organically and through acquisitions in the U.S. and Europe.
  • Open new stores and optimize existing ones.

3. Innovate for Growth

  • Use data and technology to create new revenue streams.
  • Scale new business models to reach €3 billion in additional income.

4. Cut Costs Efficiently

  • Save €5 billion through operational efficiencies and automation.
  • Use AI in logistics and store operations to reduce costs.

Vision and Purpose

  • Vision: Be the trusted local food retailer with great customer experiences.
  • Purpose: Inspire better eating and living for a healthier future.

Commitment to Stakeholders

  • Balanced Focus: Address the needs of customers, employees, and society.
  • Sustainable Growth: Ensure reliable returns and sustainable business practices.
  • Customer Engagement: Deepen relationships with personalized omnichannel services.

Ahold Delhaize is dedicated to these goals and strategies to strengthen its market position, drive growth, and maintain its reputation as a leading global retailer.

Ahold Delhaize’s Nominee For CEO Of Europe & Indonesia

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