Dutch retailer Ahold has signalled a major shift in its corporate growth strategy by outlining plans to boost its sales over the coming five years and achieve €350m in cost savings by 2014, following a slowdown in its annual growth.
Unveiling six new 'strategic pillars to accelerate growth', Ahold CEO Dick Boer said the plan would involve actively seeking potential acquisition targets.
'We are actively exploring opportunities to grow the business in and around our current markets in the United States and Europe,' he said.
'We are planning to open at least 150 new convenience stores in Europe, and a minimum of 50 supermarkets in Belgium in the next five years.'
'At the same time we will continue to look for opportunities to expand into new geographies where we can achieve sustainable profitable growth.'
Adding up to 150 new convenience stores in Europe forms a major partof the plan, while it is hoped that the modernisation of its Giant and Stop and Shop supermarkets in the US will boost its performance there and help it to achieve 40 per cent penetration of its brand.
Meanwhile, new customer loyalty initiatives, which make use of customer sales data, will reportedly add around 1-2 per cent to Ahold's overall identicalsales growth.
Boer commented: 'Our new growth strategy will ensureAhold remains successful and at the forefront of the food retail industry.'
He added: 'We are reshaping our retail businesses to connect with our customers in a more personalised way and to provide an even better shopping experience in our stores and online.'
The announcement came during the company's capital markets day and was viewed by some analysts as a sign that Ahold is planning to expand once again following a period of relative quiet in terms of merger and acquisition activity.
'The Dutch company went on a buying spree in the 1990s, making big moves in eastern Europe, Asia and America, but spent the last decade selling many of those properties to refocus on its core brands and territories in Europe and the northeastern states of the US,' said the Financial Times.
The company is also set to continue expanding its online grocery operation, targeting sales of €1.5bn by 2016 compared with around one-third of that figure at present.
Ahold will also step up its efforts to grow in Belgium as well by extending its existing network of two stores to at least 50 over the next five years.
