Ahold Reports Sales Increase For Second Quarter

In its second quarter report, Ahold, the Netherlands, reported an overall net sales increase of more, than 10.8 percent and up 4.4 percent at constant exchange rates.
For Ahold USA including sales at Stop and Shop, Giant-Landover, Giant-Carlisle, Martins and Ukrops, second quarter sales were $5.5 billion, up 5.5 percent, partly due to business acquisitions including the sale of Ukrops. Identical sales were up 1.4 percent. For the first half of the fiscal year, net sales were up 4.8 percent and identical sales were up 1.5 percent.
Operating income includes losses of $32 million relating to the purchase of Ukrops, and costs; $14 million for reorganization; $12 million from the alignment of inventory valuation across the newly formed U.S. divisions.
Ahold CEO John Rishton said: “We continued to grow sales, volumes and market share in the Netherlands and the United States while delivering solid financial results. Market conditions remained challenging with high levels of competitive promotional activity. We are confident in our ability to continue to balance sales and margins while providing improved value to our customers.”

N.Y. Firm Recalls Deli Meat Products For Possible Listeria Contamination

A New York company recalled 380,00 pounds of lunch meat used in sandwiches sold at Wal-Mart stores because the meat may be contaminated with Listeria. Zemco Industries of Buffalo distributed the meat to deli's where it was further processed into sandwiches. Walmart used the meat in its sandwiches under the Wal-Marts Marketside Grab and Go Sandwiches brand. Walmart immediately instructed stores to remove the product from their shelves.
The products were produced from June 18 to July 2 and have various use dates ranging from Aug. 20 to Sept. 10.

NGA Retailers Performance Solid Despite Economy

The National Grocers Association (N.G.A.) and FMS Solutions have released the 2010 Independent Grocers Survey - a financial and operational review of the independent retail grocery industry from last year.
Overall findings showed that retailers weathered the last year by netting a 1.68 percent net profit before taxes; comparable to public companies reported an average of 1.31 percent net profit before taxes. The NGA said it was a solid showing considering the current economic environment.  Retailers were also faced with a value-based shopper and stronger than ever price competition.  Last year's survey results for total gross margins for respondents were 26.94 percent with the 2010 survey reporting 26.28 percent. 
 The survey looks at a number of different topics including the "Top 7" issues rated by N.G.A. members and they are: health care reform; energy costs, economic stimulus plan, death tax permanent repeal, international policies, supercenter legislation and immigration reform. 

Supermarket Latest Word...

• A&P continued to appoint new executives last week including Frederic Brace as chief administrative officer and Tom O’Boyle as executive vice president for merchandising and marketing. Mr. Brace formerly worked as an airline executive at United Airlines and American Airlines and Mr. O’Boyle held management positions in Jewel Food Stores and Albertson’s.

• Stop and Shop strongly denied assertions by A&P which accused Stop & Shop of making misleading statements in comparative price advertisements. A&P filed suit against Stop & Shop asking for a court order to pull ads which compared prices of identical items between both chains.

• C&S Wholesale Grocers and its family of companies reported that contributions to the 2010 United Way exceeded past record. More than $933,000 in employee pledges and corporate matches will be invested in the company’s communities through 97 Local United Way member agencies. Donations from employees to United Way increased by 8 percent compared to 2009.

• The Food Marketing Institute has promoted Patrick Walsh to senior vice president of industry relations, education and research. Previously he was vice president of industry collaboration and education.

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