Ahold to grow online sales by 80% in three years

Ahold (Giant, Stop & Shop, Peapod) CEO Dick Boer recently said he would like the company to grow online sales by nearly 80% over the next three years, from approximately $1.7 billion to about $3.1 billion. The company's online strategy would involve growing its market share, expanding its geographic reach and increasing the number of items sold.

To that effect, Peapod, Ahold's U.S. online grocery delivery service, opened a new distribution center in New Jersey, and plans to open a new warehouse in Indianapolis next year. Peapod sales this year are expected to total $590 million, which represents annual growth rates of 11% over the last five years.

Peapod by Giant online grocery service to expand

Ahold (Giant, Stop & Shop) officials were in Philadelphia yesterday, where they said the company will accelerate investment in its Peapod Internet shopping site. CEO Dick Boer said the growth of online shopping is the "biggest shift" in the retail food landscape.

"People want to shop online," he said. "More and more are selecting the products in the store and shopping online for them. That dramatic shift brings us clearly to a new era, and a big change in our industry. And we are ready for that."

It was just over a year ago that Ahold introduced Peapod by Giant to the Philadelphia market. Here is my September 28, 2011 post:

Peapod by Giant online grocery shopping to serve Greater Philly 

Ahold reports higher sales, remains cautious about the future

Ahold USA, parent company of Giant and Stop & Shop, reported yesterday that sales increased 3.4% to $6 billion in the second quarter as compared to the same period a year ago. The company also announced gains in identical-store sales and operating margin (to 4.3%).

Worldwide, Ahold's net income rose on higher sales. CEO Dick Boer said he expects market conditions to remain difficult and is cautious about the potential impact of rising food costs in the United States.

As for the recent conversion of 15 Genuardi's stores in the Philadelphia market, the company said it was pleased. Boer won't rule out additional acquisitions, but says the current store base in the U.S. is more important.