Ahold
Encyclopedia
Ahold is a major international supermarket operator based in Amsterdam
, Netherlands. Ahold is listed on Euronext Amsterdam
and the Frankfurt Stock Exchange
.
grocery store in Oostzaan
, Netherlands. The grocery chain expanded through the first half of the 20th century, and went public in 1948. It became the largest grocery chain in the Netherlands, expanded into liquor stores and cosmetic stores in the 1970s, and changed its name to "Ahold" in 1973 (which stands for "Albert Heijn Holdings"). The company expanded internationally starting in the mid 1970s, eventually buying chains in Spain, the United States, and Portugal, and accelerating its acquisitions in the latter half of the 1990s in markets in Latin America, Central Europe, and Asia.
This ambitious global expansion was halted by fraud at the chain's American subsidiary U.S. Foodservice and by a Board level accounting scandal. In February 2003, the CEO and CFO resigned following charges of financial irregularities. Earnings over 2001 and 2002 had to be restated and the company began selling off some of its grocery chains in Latin America and elsewhere.
A similar scandal, albeit on a much smaller scale, arose in the Tops Markets
unit at about the same time. The total of all liabilities and public image damage thus incurred proved burdensome and very difficult to overcome. By 2003, Ahold had totally pulled out of Asia. It has also pulled out of Brazil, once a sizable market for Ahold, and it sold the Bi-Lo
and Bruno's chains in the United States.
In July 2006, it announced that the Northeast Ohio division of Tops Markets would be put up for sale and that the stores in that region would close by the end of the year regardless of whether or not they had been sold. In early October of that same year, Ahold issued a statement in compliance with the WARN Act, or Worker Adjustment and Retraining Notification Act
, indicating that the stores would, indeed, close on 8 December 2006, regardless of whether they had been sold. In early November, Ahold announced that the remainder of the Tops chain in the states of New York and Pennsylvania would be put up for sale.
Ahold announced details of a major strategic review on 6 November 2006. As of May 2007 Ahold has reached a definitive agreement for the sale of U.S. Foodservice to a consortium of CD&R and KKR for 7.1 billion USD. It will also divest retail operations in Poland and Slovakia as well as selling its 49% stake in Portugal's Jerónimo Martins
.
In July 2007, Ahold's Stop & Shop
division announced that it would exit the Philadelphia/Southern New Jersey market, selling 10 Super Stop & Shop stores to Wakefern, which will convert them to ShopRite
Supermarkets. The stores were all opened in the late 1990s under the Super G banner and represented new markets for Ahold. In 2005, the underperforming Super G
stores switched banners and became Super Stop & Shop stores, in a failed attempt to revive sales. At that time, 4 New Jersey Super G stores were also shuttered.
Supermarket News ranked Ahold's U.S. division No. 7 in the 2007 "Top 75 North American Food Retailers" based on 2006 fiscal year estimated sales of $24.0 billion.
Formerly owned
Formerly owned
Ahold also formerly owned the Edwards chain of stores, but changed most of the stores under that banner to Stop & Shop in 2000.
s are
(Annual Report 2010)
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, Netherlands. Ahold is listed on Euronext Amsterdam
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...
and the Frankfurt Stock Exchange
Frankfurt Stock Exchange
The Frankfurt Stock Exchange is the world's 12th largest stock exchange by market capitalization. Located in Frankfurt am Main, Germany, the Frankfurt Stock Exchange is owned and operated by Deutsche Börse, which also owns the European futures exchange Eurex and the clearing company...
.
History
The company's origins can be traced back to 27 May 1887 with the founding of the Albert HeijnAlbert Heijn
Albert Heijn B.V. is a supermarket chain founded in 1887 in Oostzaan, Netherlands. It is named after Albert Heijn, Sr., the founder of the first store in Oostzaan....
grocery store in Oostzaan
Oostzaan
Oostzaan is a municipality and a town in the Zaanstreek, Netherlands, in the province of North Holland. The town has a population of 9.104 inhabitats in december 2010. Oostzaan has got 11.49 km² land and 4.64 km² water....
, Netherlands. The grocery chain expanded through the first half of the 20th century, and went public in 1948. It became the largest grocery chain in the Netherlands, expanded into liquor stores and cosmetic stores in the 1970s, and changed its name to "Ahold" in 1973 (which stands for "Albert Heijn Holdings"). The company expanded internationally starting in the mid 1970s, eventually buying chains in Spain, the United States, and Portugal, and accelerating its acquisitions in the latter half of the 1990s in markets in Latin America, Central Europe, and Asia.
This ambitious global expansion was halted by fraud at the chain's American subsidiary U.S. Foodservice and by a Board level accounting scandal. In February 2003, the CEO and CFO resigned following charges of financial irregularities. Earnings over 2001 and 2002 had to be restated and the company began selling off some of its grocery chains in Latin America and elsewhere.
A similar scandal, albeit on a much smaller scale, arose in the Tops Markets
Tops Markets LLC
Tops Friendly Markets is an American supermarket chain based in Williamsville, New York, with stores in the western and central regions of that state and in northern Pennsylvania-Early years:...
unit at about the same time. The total of all liabilities and public image damage thus incurred proved burdensome and very difficult to overcome. By 2003, Ahold had totally pulled out of Asia. It has also pulled out of Brazil, once a sizable market for Ahold, and it sold the Bi-Lo
BI-LO (United States)
BI-LO is a supermarket chain headquartered in Mauldin, South Carolina. As of May 2010, BI-LO operates 207 supermarkets in South Carolina, North Carolina, Georgia, and Tennessee. The company employs approximately 17,000 people. Supermarket News ranked BI-LO No...
and Bruno's chains in the United States.
In July 2006, it announced that the Northeast Ohio division of Tops Markets would be put up for sale and that the stores in that region would close by the end of the year regardless of whether or not they had been sold. In early October of that same year, Ahold issued a statement in compliance with the WARN Act, or Worker Adjustment and Retraining Notification Act
Worker Adjustment and Retraining Notification Act
The Worker Adjustment and Retraining Notification Act of 1988 is a United States labor law which protects employees, their families, and communities by requiring most employers with 100 or more employees to provide sixty- calendar-day advance notification of plant closings and mass layoffs of...
, indicating that the stores would, indeed, close on 8 December 2006, regardless of whether they had been sold. In early November, Ahold announced that the remainder of the Tops chain in the states of New York and Pennsylvania would be put up for sale.
Ahold announced details of a major strategic review on 6 November 2006. As of May 2007 Ahold has reached a definitive agreement for the sale of U.S. Foodservice to a consortium of CD&R and KKR for 7.1 billion USD. It will also divest retail operations in Poland and Slovakia as well as selling its 49% stake in Portugal's Jerónimo Martins
Jerónimo Martins
Jerónimo Martins SGPS, SA is a Portugal-based company that operates in food distribution and consumer products manufacturing. The firm is the majority owner of Jerónimo Martins Retail , which operates the Pingo Doce super- and hypermarket chains in Portugal...
.
In July 2007, Ahold's Stop & Shop
Stop & Shop
The Stop & Shop Supermarket Company is a chain of supermarkets located mostly in the northeastern United States. Its main rivals are Shaw's Star Market and Hannaford in New England, while ShopRite and the A&P family of supermarkets are its main competition in New York and New Jersey.- History :Stop...
division announced that it would exit the Philadelphia/Southern New Jersey market, selling 10 Super Stop & Shop stores to Wakefern, which will convert them to ShopRite
ShopRite (United States)
ShopRite Supermarkets is a retailers' cooperative chain of supermarkets in the northeastern United States, with stores in New Jersey, New York, Connecticut, Delaware, Maryland, and Pennsylvania...
Supermarkets. The stores were all opened in the late 1990s under the Super G banner and represented new markets for Ahold. In 2005, the underperforming Super G
Giant Food of Landover, Maryland
Giant Food LLC is a supermarket chain with 202 stores in Delaware, Maryland, Virginia, and Washington, D.C.. It is headquartered in unincorporated Prince George's County, Maryland, near Landover. Giant often is known as Giant-Landover to avoid confusion with sibling company Giant-Carlisle...
stores switched banners and became Super Stop & Shop stores, in a failed attempt to revive sales. At that time, 4 New Jersey Super G stores were also shuttered.
Supermarket News ranked Ahold's U.S. division No. 7 in the 2007 "Top 75 North American Food Retailers" based on 2006 fiscal year estimated sales of $24.0 billion.
Europe
- Ahold Czech Republic a.s.
- Ahold Retail Slovakia k.s.
- Ahold Coffee Company – (Netherlands)
- Albert Heijn B.V. – (Netherlands)
- Gall & Gall B.V. – (Netherlands)
- Etos B.V. – (Netherlands)
- ICA AB – (Scandinavia) (60%)
Formerly owned
- Jerónimo MartinsJerónimo MartinsJerónimo Martins SGPS, SA is a Portugal-based company that operates in food distribution and consumer products manufacturing. The firm is the majority owner of Jerónimo Martins Retail , which operates the Pingo Doce super- and hypermarket chains in Portugal...
– (Portugal) - DinoSolDinoSolDinoSol operate the following stores:HiperDino Express A chain of convenience stores and small supermarkets operating in the Canary IslandsHiperDino A chain of supermarkets and hypermarkets operating in the Canary Islands...
Central America
Formerly owned- Ahold had a minority interest in La Fragua that operates supermarkets in Guatemala, Honduras, and El Salvador.
United States
- Stop & ShopStop & ShopThe Stop & Shop Supermarket Company is a chain of supermarkets located mostly in the northeastern United States. Its main rivals are Shaw's Star Market and Hannaford in New England, while ShopRite and the A&P family of supermarkets are its main competition in New York and New Jersey.- History :Stop...
- Giant of Landover
- Giant of Carlisle
- Martin's Food Markets
- PeapodPeapodPeapod, LLC is an online grocery delivery service owned by Royal Ahold and operating only in a select number of US cities. The company is based in Skokie, Illinois."." Peapod. Retrieved on February 15, 2011. "Corporate Headquarters 9933 Woods Drive, Skokie, IL 60077 ."-History:Peapod was founded in...
Formerly owned
- BI-LOBI-LO (United States)BI-LO is a supermarket chain headquartered in Mauldin, South Carolina. As of May 2010, BI-LO operates 207 supermarkets in South Carolina, North Carolina, Georgia, and Tennessee. The company employs approximately 17,000 people. Supermarket News ranked BI-LO No...
- Bruno'sBruno's SupermarketsBruno's Supermarkets, LLC is an American chain of grocery stores founded in 1932 by Joe Bruno in Birmingham, Alabama. It previously operated over 230 stores under the names Bruno’s, Food World, Foodmax, Food Fair, Fresh Value, Vincent's Markets, Piggly Wiggly, Consumer Foods, and American Fare in...
- TopsTops Markets LLCTops Friendly Markets is an American supermarket chain based in Williamsville, New York, with stores in the western and central regions of that state and in northern Pennsylvania-Early years:...
Ahold also formerly owned the Edwards chain of stores, but changed most of the stores under that banner to Stop & Shop in 2000.
South America
Formerly owned- Bompreço, Ahold's joined venture in Brazil, operated several Brazilian supermarket chains.
- Santa IsabelSanta Isabel (supermarkets)Supermercados Santa Isabel are a chain of supermarkets throughout Chile, Peru, Ecuador and Paraguay, owned by Cencosud. The markets are an average of 1,500 square meters.-Origins:Santa Isabel was founded in Valparaíso, Chile in 1976 by Eduardo Elberg...
, Ahold's joint venture in Chile, operated supermarkets in Chile, Peru, Paraguay, and Ecuador from 1999 to 2003. - Ahold owned Disco, which operates supermarkets in Argentina, but afterwards it was sold to the local market.
Major shareholders in Ahold
Ahold's major shareholderShareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
s are
- BlackRock, Inc. 0%
- Stichting Administratiekantoor Preferente Financieringsaandelen Ahold (18.38%)
- ING Groep N.V. (9.26%)
- DeltaFort Beleggingen B.V.a joint venture of FortisFortis (finance)Fortis N.V./S.A. was a company active in insurance, banking and investment management. In 2007 it was the 20th largest business in the world by revenue but after encountering severe problems in the financial crisis of 2008, most of the company was sold in parts, with only insurance activities...
and AvivaAvivaAviva plc is a global insurance company headquartered in London, United Kingdom. It is the sixth-largest insurance company in the world measured by net premium income and has 53 million customers in 28 countries...
(11.23%)
(Annual Report 2010)
Key people
- Albert HeijnAlbert Heijn (born 1927)Albert Heijn was a Dutch entrepreneur, major stock holder and founder and chairman of the board of Ahold....
(1927–2011), founder and former CEO of Ahold, grandson of Albert Heijn (1865–1945) who founded the family business as a grocery store chain. - Gerrit Jan HeijnGerrit Jan HeijnGerrit Jan Heijn was a Dutch businessman, who was a top manager of Ahold until his death in 1987. His grandfather was Albert Heijn, who originally founded the family business, and his older brother was also named Albert Heijn, who was the founder of Ahold...
(1931–1987), murdered executive of Ahold. - Cees van der Hoeven, former CEO of Ahold, convicted of fraud.
- Anders Moberg, former CEO of Ahold.
- John RishtonJohn RishtonJohn Rishton is the CEO and President of the international supermarket operator Ahold. He is also a non-executive director at Rolls-Royce, which he will join as CEO in March 2011.Rishton majored in economics at Nottingham University...
, CEO of Ahold between 2007 and 2011. - Dick Boer, CEO since March 2011. Formerly served as COO for Europe.
- Kimberly Ross, CFO since November 2007.
- Lodewijk Hijmans van den Bergh, Executive Vice PresidentVice presidentA vice president is an officer in government or business who is below a president in rank. The name comes from the Latin vice meaning 'in place of'. In some countries, the vice president is called the deputy president...
and Chief Corporate Governance Counsel since 13 April 2010.