Ahold Delhaize Reaches E-Commerce Profitability Amid Strong Sales Growth in 2025

Table of Contents

1. Key Highlights:
2. Introduction
3. Financial Performance and Sales Growth
4. Strategies for E-Commerce Profitability
5. Technological Innovations
6. Private Label Strategy
7. Addressing Challenges and Store Closures
8. Looking Ahead: Growth Opportunities

Key Highlights:

• Ahold Delhaize achieved e-commerce profitability on a fully allocated basis in the first half of 2025, marking a significant milestone for the company.
• Comparable-store sales growth in the U.S. reached 3.4% in Q2, with net sales totaling approximately €13 billion ($15 billion), reflecting a 2% increase year-over-year.
• Online sales surged by 16.4% year-over-year, continuing a trend of double-digit growth for the fifth consecutive quarter.

Introduction

Ahold Delhaize, a leading international grocery retailer, has made significant strides in its e-commerce operations, achieving profitability in the first half of 2025. This achievement comes as the company reports strong financial results, including a notable increase in comparable-store sales and a substantial rise in online sales. As consumers increasingly turn to online shopping for groceries, Ahold Delhaize's focus on enhancing its omnichannel model positions it well for future growth. The company’s innovative strategies, including the rollout of its proprietary e-commerce platform and investments in private label products, are key drivers of its success in the competitive grocery landscape.

Financial Performance and Sales Growth

Ahold Delhaize reported a robust financial performance for the second quarter of 2025, with net sales reaching around €13 billion (approximately $15 billion). This figure represents an increase of about 2% at constant exchange rates compared to the same quarter the previous year. The company's focus on improving customer experience and expanding its product offerings has contributed to this growth.

Comparable-Store Sales

In the U.S., Ahold Delhaize recorded a comparable-store sales growth of 3.4% during the second quarter, excluding fuel sales. This marks a continuation of positive sales trends, with Food Lion leading the charge by achieving its 51st consecutive quarter of positive growth. This consistent performance underscores the company’s ability to attract and retain customers, demonstrating the effectiveness of its strategic initiatives.

E-Commerce Growth

Ahold Delhaize's online sales have seen a remarkable increase, with a year-over-year growth rate of 16.4% in Q2. This growth is part of a broader trend, as the company has now experienced five consecutive quarters of double-digit growth in its online sales. The shift towards e-commerce has been particularly pronounced in the U.S. market, where online sales grew by more than 16%.

Strategies for E-Commerce Profitability

The achievement of e-commerce profitability marks a key milestone for Ahold Delhaize's omnichannel strategy. The company’s president and CEO, Frans Muller, highlighted that improvements in online profitability were driven by several strategic shifts.

Transition to Same-Day Delivery

One of the primary strategies has been the transition towards less asset-intensive same-day delivery options. By enhancing fulfillment capacity and optimizing delivery logistics, Ahold Delhaize has been able to meet customer demand for convenience while controlling costs.

Retail Media and Automation

The company has also tapped into retail media opportunities, leveraging digital advertising to enhance revenue streams. Automation of operations has further streamlined processes, reducing labor costs and increasing efficiency. These efforts collectively contribute to the sustainability of Ahold Delhaize's e-commerce model.

Expansion of E-Commerce Market Share

Muller noted that the company's efforts to expand its e-commerce market share in both Europe and the U.S. are paying off. The value that customers find in the convenience and flexibility of Ahold Delhaize's omnichannel offerings is increasingly evident, as reflected in the sales figures.

Technological Innovations

Ahold Delhaize has invested in technology to enhance the online shopping experience. The rollout of its proprietary e-commerce platform, Prism, has been a significant development. This platform allows customers to easily locate their favorite products, activate digital coupons, reorder items quickly, and choose between delivery or pickup options.

Successful Implementation at Food Lion

In Q2, Food Lion successfully completed the rollout of the Prism platform, positioning it as a leader in online sales growth within the U.S. market. The platform’s user-friendly interface and functionalities have made it easier for customers to engage with the brand, ultimately driving sales.

Future Rollout Plans

The company plans to implement the Prism platform at Hannaford in the latter half of 2025. This strategic move aims to replicate the success observed at Food Lion, further solidifying Ahold Delhaize's presence in the online grocery sector.

Private Label Strategy

Ahold Delhaize is increasingly focusing on private label products as a key differentiator in the marketplace. The company launched 300 new private label items in the U.S. this year, which is part of its broader strategy to enhance customer loyalty and offer unique product options.

Price Investments

To complement its private label strategy, Ahold Delhaize has initiated a $1 billion campaign aimed at price investments across its stateside brands. This campaign is designed to make products more competitive and attract budget-conscious consumers. The recent rollout of price cuts at Hannaford has yielded promising results, with sales of center store, own-brand products outpacing those of the rest of the store.

Addressing Challenges and Store Closures

Despite the positive trends, Ahold Delhaize has faced challenges. The closure of 32 underperforming Stop & Shop stores last year impacted net sales, accounting for a 1.1-percentage-point decline. However, Muller expressed optimism regarding the company's turnaround strategies and customer responses to recent initiatives.

Positive Customer Response

Muller noted that initiatives implemented at Stop & Shop are beginning to attract new customers, while also improving net promoter scores. The company's focus on enhancing the shopping experience through investments in store renovations and product offerings has started to bear fruit, leading to increased customer satisfaction.

Looking Ahead: Growth Opportunities

As Ahold Delhaize moves forward, the company remains committed to evolving its business model to meet changing consumer preferences. The emphasis on e-commerce and the development of a strong private label portfolio will continue to be central to its growth strategy.

Expanding E-Commerce Capabilities

The continued investment in e-commerce capabilities will be crucial as consumer habits shift toward online grocery shopping. Ahold Delhaize's focus on enhancing fulfillment and delivery options, along with the integration of new technologies, positions the company favorably for future growth.

Building Customer Loyalty

Strengthening customer loyalty through private label offerings and competitive pricing will be essential in a crowded market. Ahold Delhaize’s commitment to delivering quality products at attractive prices will help it maintain its competitive edge.

FAQ

What is Ahold Delhaize's recent financial performance?
Ahold Delhaize reported net sales of approximately €13 billion ($15 billion) for Q2 2025, with comparable-store sales growth of 3.4% in the U.S. and a 16.4% increase in online sales year-over-year.

How has Ahold Delhaize achieved e-commerce profitability?
The company achieved e-commerce profitability through a combination of strategies, including the shift to same-day delivery, automation of operations, and leveraging retail media opportunities.

What is the Prism platform?
The Prism platform is Ahold Delhaize's proprietary e-commerce solution that enhances the online shopping experience by allowing customers to easily find products, activate coupons, and choose delivery or pickup options.

How is Ahold Delhaize addressing challenges in its business?
The company has closed underperforming stores while investing in initiatives to improve customer experience and satisfaction. Recent efforts have shown positive customer responses, indicating progress in its turnaround strategies.

What future plans does Ahold Delhaize have for growth?
Ahold Delhaize aims to expand its e-commerce capabilities, enhance its private label offerings, and invest in competitive pricing strategies to attract and retain customers as shopping habits evolve.