Ahold: Price Cuts Gaining Traction at Giant/Stop & Shop

AMSTERDAM — Newly implemented everyday low price programs are beginning to change customer price perceptions at Stop & Shop and Giant-Landover, officials of Ahold here said in a conference call yesterday. Larry Benjamin, chief operating officer of Ahold’s U.S. operations, said the Value Improvement Program, which began last fall and is now implemented in six categories at the chains, has gained credibility with consumers and has begun to lift sales in some categories. “We know from our data that we’re getting very good awareness that the price change is taking place,” Benjamin said. “We now move to not only getting awareness, but [to] where we actually have people believing that the prices are going to stay low — that there’s something different at Stop & Shop; that’s a key point.” For the fiscal first quarter ended April 22, Ahold reported sales of $17.8 million, down 0.7% from the same period a year ago. Operating income of $568 million was down by $4 million from a year ago but better than many analysts predicted. Ahold stock was up by more than 6% following the news.

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