Ahold Delhaize sales growth slows down
Ahold Delhaize USA experiences slowdown in sales growth despite strong online grocery segment performance with double-digit expansion.
Ahold Delhaize USA posted a solid boost in its online grocery segment, but overall comparable‑store sales barely moved in the second quarter of fiscal 2026.
Digital sales keep climbing amid broader slowdown
The e‑commerce division grew 14.5% year over year, marking the ninth straight quarter of double‑digit expansion, according to the earnings release. The growth helped offset a modest 1.4% rise in net sales, which totaled just under 13 billion euros (about $15 billion) at constant exchange rates.
Despite the strong online performance, comparable‑store sales rose less than 1%, a figure analysts linked to the Inflation Reduction Act. The legislation, which altered pharmacy pricing and reduced SNAP benefits, is expected to shave roughly $450 million from U.S. sales this year, the report noted.
Chief Financial Officer Jolanda Poots‑Bijl told investors that lower egg prices, pharmacy pricing changes and a shift in the timing of SNAP disbursements also weighed on the topline. “We anticipate some minor variability between quarters as shoppers manage benefit payouts,” she said.
Store remodels and private‑label push
Remodeling remains a focus for the retailer. Food Lion is renovating 93 stores in the Greensboro, North Carolina area, with projects slated for completion later this year. The banner also plans new remodels in Richmond and Roanoke, Virginia, the CFO said.
Food Lion’s e‑commerce sales rose more than 20% this quarter, reinforcing its role as a top‑performing banner. Meanwhile, the private‑label portfolio added 70 basis points of growth, pushing overall private‑label penetration past the 40% mark.
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The 40% figure serves as a milestone on the path to a 45% target by 2028. “That’s an important milestone for the grocer,” the CEO noted during the earnings call.
The mixed picture reflects the grocery sector’s shift toward digital channels and higher‑margin private brands.
AI experiments and future outlook
President and CEO Frans Muller said the firm is exploring artificial intelligence through three lenses: re‑imagining business domains, optimizing existing processes, and democratizing AI tools for all associates. In the upcoming quarter, Stop & Shop and The Giant Company will test AI‑driven recipe features that suggest meals and personalize options based on shoppers’ purchase histories.
Looking ahead to the second half of 2026, the retailer expects pharmacy sales to keep pressuring earnings, while the impact of falling egg prices should ease. Poots‑Bijl warned that SNAP‑related variability could continue, but she did not foresee any major disruptions beyond the anticipated hit from the Inflation Reduction Act.
Overall, the earnings release paints a picture of a retailer that is strong online, cautiously optimistic about its remodel strategy, and actively testing new technology, even as it wrestles with policy‑driven headwinds.
