WORD FOR WORD

Ahold USA's retail chains are working together on synergies but each is at a different stage of development as a business. Bill Grize, president and CEO, Ahold U.S. Food Retail, told SN how each of the six chains has been performing, and he discussed the outlooks. The background information for each chain was supplied by the company (average number of associates as of fourth-quarter 2001 and number of stores as of third-quarter 2002). 2001 sales volume is from the most recent full earnings available.

a half dozen other stores show a company being creative and not sitting on its laurels. There's a heavy focus in the new prototype on general merchandise and also strategic alliances in general merchandise. There's a heavier emphasis on perishables and excitement in shopping. Stop & Shop has performed well in all three areas in which it operates.

Tops Markets

Joined Ahold: 1991

Number of associates: 24,595

2001 Sales: $3.0 billion

Number of stores: 376

Store Formats: Tops Friendly Markets, Wilson Farms, BKwiks

Tops has managed a growth year in a slow-growth New York market. Our share numbers are fairly good in Northeast Ohio but we would like to see them a little higher.

Giant Food Inc. (Landover, Md.)

Joined Ahold: 1998

Number of associates: 27,642

Sales 2001: $5.1 billion

Number of stores: 188

Store Formats: Food/pharmacy supermarkets (approximately 60,000 sq. ft.)

Giant gained share in Washington, not to the extent we'd like but that's a tough market. Washington was hit by a decrease in tourism after 9/11 and a double-whammy with high-tech unemployment. I'd give Giant the most improved in perishables award. Their newest prototypes come a long way in addressing perishables quality. They opened their first store in 20 years in the District of Columbia. It's a fine store and well received by the community.

Bi-Lo

Joined Ahold: 1977

Number of associates: 25,942

Sales 2001: $3.6 billion

Number of stores: 445

Store Formats: Supermarkets, discount grocery, convenience/fuel stores

We have a number of opportunities available for better operation and execution at store level as we work on a much better approach from a format standpoint to position ourselves in the market. I'm pleased to say we've assembled a team that will deliver good results at Bi-Lo. The team is led by Dean Cohagan. We've actually grown share in the food-only channel. There's still some slight erosion in the food/drug/mass. We've turned the corner. The worst is behind us. We've gone through a rebuilding process in the last year. I see us enjoying some growth in the coming year in spite of the economy we're in.

Giant Food Stores (Carlisle, Pa.)

Joined Ahold: 1981

Number of associates: 17,780

Sales 2001: $2.5 billion

Number of stores: 113

Store Formats: Supermarkets (at approximately 44,000, 55,000 and 64,000 sq. ft.)

Cees [Ahold president and CEO Cees van der Hoeven] calls this chain our little jewel. They, along with Stop & Shop, led the parade on identical-store sales growth over the past year. They had very strong market share gains over the last six years. That's with a high degree of competition by Wal-Mart. Almost 50% of their stores are affected by Wal-Mart supercenters.

Bruno's Supermarkets

Joined Ahold: 2001

Number of associates: 14,000

Sales 2001: $0.1 billion

Number of stores: 187

Store Formats: Supermarkets, food fairs, liquor stores, gas stations

Bruno's has been a darn good acquisition for Ahold USA. We are pleased with the support and cooperation of the Bruno's team in terms of getting assimilated into Ahold USA. It wasn't an easy task because quite a few changes took place. And through most of it, we had Wal-Mart supercenters opening in key areas, Publix coming into Birmingham and, most notably, Winn-Dixie launching a loyalty card with very aggressive promotions that continue to the present time. So we lost a little share in Bruno's marketing areas, and that's something we'll concentrate on in the coming year.