U.S. net sales at Ahold Delhaize reached $15.1 billion in the second quarter, up 1.4 percent, as the Zaandam, Netherlands-based retailer reported results Aug. 5.
U.S. comparable sales excluding gasoline rose 0.8 percent to $14.7 billion. That figure absorbed considerable drag: pharmacy pricing tied to the Inflation Reduction Act cut 0.7 percentage points, while egg price deflation and reduced SNAP benefits from program changes together took off another 0.9 percentage points. Calendar shifts cost an additional 0.1 percentage points. Gasoline sales rose 38 percent to $318 million.
Ahold Delhaize USA operates Food Lion, Giant Food, The Giant Co., Hannaford and Stop & Shop, ending the quarter with 2,021 stores.
Online growth continues
U.S. online sales grew 14.5 percent to $1.46 billion, the ninth consecutive quarter of double-digit growth. Food Lion led the brands with growth topping 20 percent. Comparable sales growth in the U.S. was itself driven by online, the company said.
“This underscores the value of our omnichannel model in expanding reach, enhancing convenience and attracting new customers,” commented Frans Muller, president and CEO of Ahold Delhaize.
Price investments hit U.S. margin
Underlying operating income in the U.S. was $632 million, down from $649 million a year earlier, for an underlying operating margin of 4.2 percent, off 0.2 percentage points. Ahold Delhaize attributed the decline to price investments, higher utility costs and the absorption of indirect costs from higher energy prices, partially offset by a favorable mix in pharmacy.
Among the quarter’s price moves, the company lowered everyday prices on thousands of items at Stop & Shop’s 137 stores in New York and New Jersey. All Stop & Shop locations now have price investments in place. The company said those actions are supporting market share gains and improved net promoter scores.
Own brands remain central to the stores’ value strategy. Group own-brand food penetration rose 0.7 percentage points to surpass 40 percent, the company said, adding that Maine-based Hannaford has priced more than 3,500 key value items in its own-brand assortment at parity with leading competitors.
“In the U.S., we strengthened our competitive position in an environment where value and convenience remain top priorities for customers,” Muller said.
Solid quarter
Speaking about the quarter’s results across the company as a whole, he said, “We delivered another solid performance, demonstrating the resilience of our ‘Growing Together’ strategy and the strength of our local brands in a challenging market. Every week, millions of loyalty interactions help our brands understand customers in real time. Combined with data and AI, these insights have allowed our brands to personalize experiences, improve decisions and strengthen their connection with the communities they serve.”
He referenced the 10th anniversary of the merger between Ahold and Delhaize Group, saying the combined company has “become a proven model for profitable growth and market share expansion.
“Together, our brands have successfully navigated through unprecedented change, continued to earn customers’ trust and consistently created value for all our stakeholders,” Muller said. “As we enter into our next decade, we do so with confidence, clear priorities and significant opportunities ahead.”
Americold contracts terminated
Ahold Delhaize disclosed that on July 21 it reached an agreement with Americold to terminate storage and handling contracts for facilities in Mountville, Pennsylvania, and Plainville, Connecticut. The termination releases a $200 million commitment for leases not yet commenced and a $500 million purchase commitment.
Separately, U.S. capital expenditures totaled $1.05 billion for the first half, down from $1.14 billion a year earlier.
IRA pressure ahead
The company expects the Inflation Reduction Act to reduce U.S. reported and comparable store sales by roughly $450 million for the full year, with no material impact on underlying operating income. The 2026 fiscal year includes a 53rd week, projected to add 1.5 to 2 percent to net sales.
“Looking ahead, we expect the operating environment to remain challenging,” Muller said. “But challenging markets also provide the clearest measure of competitive strength.”