Ahold Delhaize Q1 2025: Driving Growth through Pricing and Omnichannel Loyalty

Ahold’s first quarter of 2025 showed strong performance, driven by strategic pricing, significant digital sales growth, and a continued focus on omnichannel infrastructure and loyalty programs. As highlighted in Ahold's fourth-quarter analysis, the company’s partnership with Inmar Intelligence has been key in personalizing the shopper journey, boosting loyalty programs with digital coupons and personalized offers. Despite challenges like price hikes on eggs and evolving tariffs, Ahold’s strategic pricing and innovative solutions ensured continued growth. Looking ahead, Ahold’s focus in 2025 remains on executing its growth model, including dynamic pricing, enhanced loyalty programs, expanded store remodels, and AI-driven solutions to increase operational efficiency.

“At the heart of our Growing Together plan and growth model is our ambition to accelerate growth and outperform the industry in the coming years,” said Frans Muller, CEO and President, Ahold Delhaize

Q1 2025 Performance

Net Sales

€23.3 billion, an increase of 5.0% at constant exchange rates and 7.1% at actual exchange rates.

‍U.S. Net Sales

€13.9 billion, an increase of 1.8% at constant exchange rates and 5.2% at actual exchange rates.

‍Online Sales Growth (U.S.)

17.9% growth in online sales, fueled by strong double-digit growth across most brands, especially Food Lion.

Brand Assortment

Hannaford continues to lead in own-brand penetration in the U.S. with nearly 38% of its assortment from private labels.

Store Models

Stop & Shop completed four remodels in Q1, with the Framingham, Massachusetts location being a key highlight.

Retail Media Growth

Partnership with Inmar Intelligence: AG Retail Media in the U.S. partnered with Inmar Intelligence to enhance in-store advertising, including branded shelves and improved customer engagement through targeted advertising. This collaboration allows CPG companies to measure advertising effectiveness.

Digital Advertising: Continued expansion of retail media solutions in the U.S., particularly with advanced in-store solutions aimed at increasing shopper interaction.

Loyalty and Offers

In Q1, over 3.2 billion personalized offers were delivered across Ahold’s U.S. brands, marking a 25% year-over-year increase.

My Hannaford Rewards program was named among Newsweek’s America’s Best Loyalty Programs.

Strategic Initiatives in Q1 2025

Pricing Strategies

The Fresh Low Prices initiative expanded at Giant Food, lowering prices on hundreds of items. Stop & Shop also rolled out value-enhancing campaigns and reduced prices at over 40 stores.

Omnichannel Expansion

Expansion of click-and-collect locations, with over 80% of U.S. stores offering this service. Additionally, the company partnered with DoorDash to enhance delivery capabilities.

Store Remodels & Replacements

Store Remodels & Replacements Giant Foods opened a new replacement store at Southlake Marketplace, offering premium services such as full-service meat and seafood departments, a coffee shop, and a restaurant.

Key Highlights

Omnichannel Growth

Ahold Delhaize is on track to increase omnichannel loyalty sales penetration to over 80% by 2028. This ambitious goal involves significant investments in technology, expanding e-commerce infrastructure, and enhancing personalized digital loyalty programs. As we covered in our article, How Ahold Delhaize is Strengthening Omnichannel Capabilities with Strategic Partnerships, these efforts are already paying off, with over $141 million in savings presented to shoppers through their partnership with Inmar Intelligence. CFO Natalie Knight emphasized that Ahold's e-commerce profitability is improving, stating, “That is one of our goals in 2025 to have a profitable e-com business.” This aligns with the strategic direction outlined in Ahold Delhaize Strides Toward Digital Profitability in 2025, where Ahold continues to focus on digital growth while ensuring sustainable profitability.
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Ahold aims to make online operations profitable by 2026, with a forecasted increase in online grocery sales, particularly in the U.S.

‍Investments in the U.S.

Ahold Delhaize is committed to investing €1 billion in its U.S. strategy over the next four years, focusing on online profitability, price investments, and enhancing customer experience.

Future Outlook

Ahold Delhaize reiterated its 2025 EPS guidance and is committed to increasing own-branded food sales to 45% by 2028. The company expects its online operations to become profitable by 2026, focusing on expanding e-commerce and omnichannel capabilities to drive future growth.