Netherlands-based grocery retail company Ahold Delhaize has announced a new growth and investment plan, which build on its ‘Leading Together’ strategy, at its recent Investor Day.
The plan focuses on four priorities intended to help the company drive more customer value over the next four years.
As part of this plan, Ahold Delhaize will increase its investments in digital, online, data, automation and omnichannel capabilities.
It also aims to enter deeper digital relationships to better serve customers, foster a more healthy and sustainable food retail system and develop a customer ecosystem using its portfolio.
By investing in digital propositions, the company expects accelerated sales growth between 2023 and 2025 and aims to add €10bn ($11.4bn) in incremental sales by 2025.
It also expects to double its net consumer online sales by 2025.
Ahold Delhaize chief financial officer Natalie Knight said: “To support these plans, the company will increase investment levels from 3% to 3.5% a year to fuel growth.
“We will continue to be the best operator in the industry, underlined by our world-class operating margins.
“As part of our planning toward 2025, we are committing to even more ambitious Save for Our Customers targets: around €4bn by 2025.
“We will also use our knowledge and experience to make e-commerce profitable by 2025, and I am pleased to announce a planned €1bn share buyback for next year.”
Ahold Delhaize has also announced plans to conduct a subsidiary initial public offering (sub-IPO) for Dutch online retailer bol.com in the second half of next year.
Proceeds from the sub-IPO will be used to facilitate growth and provide additional funding for Ahold Delhaize.
Bol.com is expected to generate €5.5bn from net consumer online sales this year.
In August, Ahold Delhaize reported group net sales of €18.6bn for the second quarter (Q2) of the fiscal year 2021 (FY21).