ahold key facts

39
Insert client logo in master here 1 C opyright© 2002 A C Nielsen a V N U com pany 1

Upload: shawn

Post on 17-Jan-2016

35 views

Category:

Documents


0 download

DESCRIPTION

Ahold Key Facts. 30 million customers every week Sales approaching $65 USD billion 4,500 stores in 25 countries on 4 continents 350,000 associates. THE EMERGING RETAIL LANDSCAPE. WINNERS & LOSERS. U.S. Retailing: competition from several channels…. Research Design. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Ahold Key Facts

Insert client logo in master here

1

Copyright © 2002 ACNielsena VNU company

1

Page 2: Ahold Key Facts

Insert client logo in master here

2

Copyright © 2002 ACNielsena VNU company

2

Mission

“...To be the world´s

best and most successful

food provider…”

Page 3: Ahold Key Facts

Insert client logo in master here

3

Copyright © 2002 ACNielsena VNU company

3

Ahold Key Facts

30 million customers every week

Sales approaching $65 USD billion

4,500 stores in 25 countries on 4 continents

350,000 associates

Page 4: Ahold Key Facts

Insert client logo in master here

4

Copyright © 2002 ACNielsena VNU company

Ahold Key Facts

30 million customers every week Sales approaching $65 USD billion 4,500 stores in 25 countries on 4 continents 350,000 associates

4

Ahold Store BannersNorth America Europe Asia

South America Central America

Supermarkets Hypermarkets Convenience stores Specialty stores Food service E-commerce

Page 5: Ahold Key Facts

Insert client logo in master here

5

Copyright © 2002 ACNielsena VNU company

5

Strategy• Multi-Channel Food Provider

• Global Network of Regional Market Leaders

• Industry Leadership

• Profitable Growth

Page 6: Ahold Key Facts

Insert client logo in master here

6

Copyright © 2002 ACNielsena VNU company

6

Multi-Channel Food Provider

• Retail–Continued investment

– Improving margins

• Foodservice–U.S. Foodservice, PYA / Monarch

–Abundant synergies

• E-Commerce–Peapod, Inc.

Page 7: Ahold Key Facts

7

Insert client logo in master here

Copyright © 2002 ACNielsena VNU company

THE EMERGING RETAIL LANDSCAPE

WINNERS & LOSERS

Page 8: Ahold Key Facts

Insert client logo in master here

8

Copyright © 2002 ACNielsena VNU company

U.S. Retailing: competition from several channels…

Page 9: Ahold Key Facts

Insert client logo in master here

9

Copyright © 2002 ACNielsena VNU company

Research Design

Date Source: 61,500 member ACNielsen Homescan Consumer Panel

Primary Channels Grocery (excluding Supercenters) Mass Merchandiser (excluding Supercenters) Supercenters* Drugstores Warehouse Clubs Dollar Stores Convenience/Gas

* Includes Kmart, Target & Wal-Mart Supercenters

Page 10: Ahold Key Facts

Insert client logo in master here

10

Copyright © 2002 ACNielsena VNU company

Warehouse Clubs, Supercenters, Dollar Stores &

Convenience/Gas continue expansionACNielsen Universe Estimates

143,571

82,811

39,553

5,636

9,133

1,212

904

144,866

78,824

49,437

6,399

3,652

148

661

Grocery

Conv/Gas

Drug

Mass Merch

Dollar Stores*

Supercenters

Warehouse

# of stores

1993

2001

•Family Dollar & Dollar General

Page 11: Ahold Key Facts

Insert client logo in master here

11

Copyright © 2002 ACNielsena VNU company

More large Supermarkets

ACNielsen Universe Estimates

2,436

29,783

111,352

1,664

28,621

114,581

Supermarket &Drug Combos -

$2mm+

Supermarkets$2mm+

IndependentGrocery <

$2mm

# of stores

1993

2001

Page 12: Ahold Key Facts

Insert client logo in master here

12

Copyright © 2002 ACNielsena VNU company

Petro outlets offset declines in Convenience chains

ACNielsen Universe Estimates

17,779

65,302

26,992

51,832

ConvenienceChains

Petro Outlets

# of stores

1993

2001

Page 13: Ahold Key Facts

Insert client logo in master here

13

Copyright © 2002 ACNielsena VNU company

Grocery & Mass losing tripsHousehold Shopping Frequency

75

23

18

15

15

10

11

78

25

17

15

14

10

10

83

26

15

15

13

9

10

85

28

14

15

13

9

9

Grocery

Mass Merch

Supercenters*

Drug

Conv/Gas

Warehouse

Dollar

Trips per Household

'98

'99

'00

'01

* Includes Kmart, Target & Wal-Mart Supercenters

Impacted by pace of life, competition from restaurants, & other retail channels too!

Page 14: Ahold Key Facts

14

Insert client logo in master here

Copyright © 2002 ACNielsena VNU company

Key Industry Trends

Channel Grazing

Increased competition for Rx sales

Gasoline retailing

Frequent shopper program

Demand for convenience

Niche retailing

Page 15: Ahold Key Facts

Insert client logo in master here

15

Copyright © 2002 ACNielsena VNU company

A new concept: Channel Grazing

Clear evidence that consumers take advantage of their channel options

But how many retailers or retail channels do consumers include in their shopping mix?

Any differences in shopping behavior among light versus heavy grazing households?

Does grazing differ by household composition?

Page 16: Ahold Key Facts

Insert client logo in master here

16

Copyright © 2002 ACNielsena VNU company

A new concept: Channel Grazing

Over 900 national, regional, & local retailers & retail channels monitored via Homescan panel

Households who shopped in “1” to “n” retailers were placed into three groups to define:

Heavy grazers: shopped in over 28 retailers/retail channel per year

Medium grazers: shopped in 19-27 retailers/retail channel per year

Light grazers: shopped in 18 or fewer retailers/retail channel per year

Page 17: Ahold Key Facts

Insert client logo in master here

17

Copyright © 2002 ACNielsena VNU company

Channel Grazers drive retail sales

34 3532

24

33

43

Light Grazers MediumGrazers

Heavy Grazers

% of Households shopping in:

% Households

% Dollars

Total U.S. - 52-wks ending 12/29/01 – All Outlets

Page 18: Ahold Key Facts

Insert client logo in master here

18

Copyright © 2002 ACNielsena VNU company

Channel “grazing” prevalent in more populated counties

26 30 3648

35 3535

32

39 35 29 20

"A" LargeMetro

Counties

"B" FringeMetro

Counties

"C" SmallUrban

Counties

"D" RuralCounties

% of Households shopping in:

Heavy Grazers

Medium Grazers

Light Grazers

Total U.S. - 52-wks ending 12/29/01 – All Outlets

More grazers where there is more variety74%

Page 19: Ahold Key Facts

Insert client logo in master here

19

Copyright © 2002 ACNielsena VNU company

Channel “grazing” prevalent among couples & families w/older children

28

26

29

30

27

32

34

38

29

35

33

32

36

35

38

36

43

39

38

38

37

33

28

26

Childless Younger Couples

Mid Aged Childless Couples

Maturing Families

Established Families

Empty Nesters

New Families

Young Singles

Mid Aged Singles

% of Households shopping in:

Light Grazers

Medium Grazers

Heavy Grazers

Total U.S. - 52-wks ending 12/29/01 – All Outlets

Page 20: Ahold Key Facts

Insert client logo in master here

20

Copyright © 2002 ACNielsena VNU company

Except for Convenience/Gas, females dominate channel shopping trips

Share of channel trips

22

78

37

6347

53

67

33

71

29

74

26

64

36

Males

Females

GroceryMassSupersDrugConv/GasWHCDollar

As males age, they handle increased share of trips

Total U.S. - 52 wks ending 12/29/01

Page 21: Ahold Key Facts

Insert client logo in master here

21

Copyright © 2002 ACNielsena VNU company

Higher basket values forFemale shoppers

$84.27

$40.84

$35.82

$20.37

$11.38

$11.38

$78.66

$32.88

$26.39

$17.39

$8.76

$9.49

Warehouse/Club

Mass

Grocery

Drug

Dollar Store

Conv/Gas

Average $ Basket Size

MalesFemales

Total U.S. - 52 wks ending 12/29/01

Page 22: Ahold Key Facts

Insert client logo in master here

22

Copyright © 2002 ACNielsena VNU company

Increased Rx competition – did you know?

Rx sales rose 18% to $208 billion in 2001

Doubling sales from 5 years ago Mass sales grew 23% to $8 billion Supermarket sales grew 16% to $18 billion Mail order Rx sales will surpass sales in

Independent Drug Stores in 2002

Source: Drug Store News

Page 23: Ahold Key Facts

Insert client logo in master here

23

Copyright © 2002 ACNielsena VNU company

Gasoline retailing – did you know?

Share of gasoline sales from high-volume retailers is expected to grow from 5% to between 15% & 20% within four years

“Costco testified at a recent public hearing…locations with gasoline have a customer-repeat frequency of four times per month. Locations without gasoline have a repeat frequency of one time per month.”

Source: NACS

Page 24: Ahold Key Facts

Insert client logo in master here

24

Copyright © 2002 ACNielsena VNU company

78% of U.S. households participate in a Grocery Frequent Shopper Program

But, 63% are in multiple programs!

35

55

6670

7478

1996 1997 1998 1999 2000 2001

% of U.S households w/Grocery frequent shopper card

Source: ACNielsen Homescan surveys

Page 25: Ahold Key Facts

Insert client logo in master here

25

Copyright © 2002 ACNielsena VNU company

Competition for Convenience

Dual working households, less time for preparation

Improved shelf life, refrigerated, convenient products..

“Consumers told us that if it's not easy, it's not eaten.”

Page 26: Ahold Key Facts

Insert client logo in master here

26

Copyright © 2002 ACNielsena VNU company

“Convenience Still Competes”

Old Fort Travel Plaza in Ft. Wayne, Indiana added delivery of just about anything (detergent, cigarettes, milk, etc.) along with their normal pizza deliveries

This was driven by: increased competition from Kroger & Wal-Mart for

gasoline sales“You cannot compete with them on price. They can sell

gas at 25 cents a gallon and make it up selling lawnmowers.”

Store owner expects to add another 25% on top of their normal pizza sales & drive other foodservice sales

Source: NACS Magazine – March 2002

Page 27: Ahold Key Facts

Insert client logo in master here

27

Copyright © 2002 ACNielsena VNU company

Niche Retailing

Whole Foods “is the largest retailer of natural and organic foods, with 128 stores”

Wild Oats “is the 2nd largest natural supermarket chain in North America, with more than 100 stores”

EatZi is a bakery, a market & a restaurant with catering services for all occasions

Page 28: Ahold Key Facts

Insert client logo in master here

28

Copyright © 2002 ACNielsena VNU company

Summary

Consumers take advantage of channel options

Grocery channel shopping frequency continues decline; Mass declining too

Dollar Stores & Supercenters posting strong penetration gains

Heavy category buyers purchase in multiple channels; Heavy “grazers” drive retail sales

Page 29: Ahold Key Facts

Insert client logo in master here

29

Copyright © 2002 ACNielsena VNU company

Summary

The demographics & shopping behavior of channel shoppers varies by channel

Successful Retailers will use this knowledge to

target growth via advertising, merchandising and promotional activities

Successful Manufacturers will help Retailers and themselves with channel-specific targeting of products and promotions

Page 30: Ahold Key Facts

Insert client logo in master here

30

Copyright © 2002 ACNielsena VNU company

Summary

Retailers

Alternative channel retailers are coming after your shoppers & their shopping tripsinvest dollars to re-invent yourselves!

Focus efforts against core/heavy shoppersexpand products & services to capture greater

share of spendingfrequent shopper programs need to be more than

just another deal

Initiate efforts to increase loyalty among “key” occasional or light shoppers

Page 31: Ahold Key Facts

Insert client logo in master here

31

Copyright © 2002 ACNielsena VNU company

Offerings that progressive retailers are using to re-invent themselves

Drive-thru & Drive-up Indoor food courts Outdoor cafes On-site gasoline pumps Book sections w/seating Leveraging food

categories to drive frequency & ring

On-line ordering & home delivery

Self check-out counters In/Out specialty items

Enhanced wine sections Floral departments On-site banking & other

financial services Health Food & Health

Care sections Cooking classes “Department Store”

cosmetic counters Child care facilities Good tasting & variety of

prepared foods Photo Processing

Page 32: Ahold Key Facts

Insert client logo in master here

32

Copyright © 2002 ACNielsena VNU company

Summary Manufacturers

Capitalize on the channel shopping diversity of heavy category buyers through expanded distributionif you don’t a competitor will!

Expand through tailored product offerings, not through increased distribution of existing offeringsmatch product offerings w/channel demographics

and/or channel shopping behavior

Page 33: Ahold Key Facts

Insert client logo in master here

33

Copyright © 2002 ACNielsena VNU company

RETAIL LANDSCAPE RETAIL LANDSCAPE 20032003

Page 34: Ahold Key Facts

Insert client logo in master here

34

Copyright © 2002 ACNielsena VNU company

KEYS TO SUCCESSKEYS TO SUCCESS20032003

Michael Porter 1995 Competitive Michael Porter 1995 Competitive StrategiesStrategies

Operational EfficienciesOperational Efficiencies

Execution of StrategyExecution of Strategy

Page 35: Ahold Key Facts

Insert client logo in master here

35

Copyright © 2002 ACNielsena VNU company

Who is Winning?Who is Winning?20032003

Walmart Walmart –– OE, Price, OE, Price, Convenience,Geography,Convenience,Geography,

Costco Costco –– OE, Quality at a Price, Adventure,OE, Quality at a Price, Adventure,

HEB HEB –– OE, Price,Geography, Customer OE, Price,Geography, Customer (Neighborhood Marketing),Convenience, (Neighborhood Marketing),Convenience, Central MarketCentral Market

Publix Publix –– OE, Geography, Customer (NM)OE, Geography, Customer (NM)

Page 36: Ahold Key Facts

Insert client logo in master here

36

Copyright © 2002 ACNielsena VNU company

Who is Winning Cont.Who is Winning Cont.

Whole Foods Whole Foods –– OE, Customer,Health, OE, Customer,Health, ExperienceExperience

Target Target –– OE, Information Systems, OE, Information Systems, Customer, BrandsCustomer, Brands

Walgreens Walgreens –– OE, Systems, Locations OE, Systems, Locations (NM (NM –– Intercept), Health, ConvenienceIntercept), Health, Convenience

Dollar Stores Dollar Stores –– OE, Price, CustomerOE, Price, Customer

Page 37: Ahold Key Facts

Insert client logo in master here

37

Copyright © 2002 ACNielsena VNU company

KEYS TO FAILUREKEYS TO FAILURE20032003

Lack of OE Lack of OE –– SGA ratios, EVA,ROESGA ratios, EVA,ROE

No strategy, moving strategy, No strategy, moving strategy, reactionaryreactionary

Lack of executionLack of execution

Lost touch with consumerLost touch with consumer

“Never go there”“Never go there”

Page 38: Ahold Key Facts

Insert client logo in master here

38

Copyright © 2002 ACNielsena VNU company

Who is Losing Who is Losing 20022002

Kmart Kmart –– OE issues, strategy neededOE issues, strategy needed

Montgomery WardMontgomery Ward

Rite AidRite Aid

Convenience StoresConvenience Stores

Grand UnionGrand Union

Independents?Independents?

Page 39: Ahold Key Facts

Insert client logo in master here

39

Copyright © 2002 ACNielsena VNU company

TBD 2003 TBD 2003 -- 20052005

AholdAhold AlbertsonsAlbertsons KrogerKroger SafewaySafeway DelhaizeDelhaize Wegmans Wegmans –– does size matter?does size matter? WinnWinn--DixieDixie PathmarkPathmark A&PA&P MeijerMeijer