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Ahold Delhaize Reports Over $345M Losses From Stop & Shop Strikes

Ahold Delhaize Reports Over $345M Losses From Stop & Shop Strikes

ZAANDAM, NETHERLANDS - The 11-day strike impacting Stop & Shop, one of Ahold Delhaize’s retail banners, may have ended, but the repercussions are still being felt. The retailer recently reported slowed growth in both its brick-and-mortar and digital space, and though sales were still positive, the company took an undeniable hit.

Frans Muller, President and CEO, Ahold Delhaize"Although our results were impacted by the strike at Stop & Shop, our other U.S. brands continued their strong performance,” commented Frans Muller, President and CEO of Ahold Delhaize. "As we continue to see sales performance improve at Stop & Shop, we expect no significant impact from the strike in the second half of the year.”

According to The Hartford Courant, the economic impact of the initial work stoppage was $224 million, and $121 million during the “recovery period,” for a total of $345 million in losses. The company’s online sales also took a hit, because though sales for that sector were up 14.4 percent (to $249 million), pre-strike projections had placed online sales growth at 18 percent.

Stop & Shop's strike has caused Ahold Delhaize to shoulder a $345 million loss in profits

Ahold Delhaize released a financial report detailing its current economic position and the fallout from the strike. Some of the details include:

  • Net sales of €16.3 billion ($18.2 USD), up 1.5% at constant exchange rates, impacted by the strike
  • Net consumer online sales up 29.2% at constant exchange rates
  • Underlying operating margin of 3.6%, including strike impact
  • U.S. comparable sales growth excl. gasoline +2.3% adjusted for Easter and strike impact

For the full report, click here.

Will this slowdown in Ahold’s growth become a trend? Or is it just a bump in the road? AndNowUKnow will continue to report.

Ahold Delhaize