Dutch retailer Ahold is looking at expanding its operations into Belgium this year, chief executive officer John Rishton revealed at the group's annual meeting of shareholders this week.
Mr Rishton said that the proposed move was one of a number of steps forward that the group was looking to take in its European or US markets in 2010.
'In Europe, we are evaluating organic growth for Albert Heijn into Belgium – in particular whether we can push over the border and use the logistic strength of our Dutch operation,' he said.
As part of the speech, Mr Rishton said that Ahold was planning to increase capital expenditure by around 40 per cent to €1.1bn, while it saw many competitors pulling back, with part of this used to support a faster roll out of remodelled stores.
In the Netherlands, Ahold would look to grow beyond satisfying consumers' food requirements into meeting their everyday needs, he noted, while the group would look to improve store formats and launch nearly 1,000 private label products in the US.
'Consistent with many CEOs, I don't see any significant improvement in the short-term in the economic environment,' Mr Rishton told shareholders. I suspect consumers will remain cautious.
'At the start of 2009, the environment for our industry was relatively benign but during the year we encountered deflation and trading down by customers,' he added. 'In 2010, I hope we will see the opposite with conditions improving through the year. But our visibility, like everyone else's, is limited.'
