Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 12 pages
Data source: Published sources
Abstract
In 2015, Dutch grocer, Ahold paid USD28 billion to acquire Belgian food retailer, Delhaize. The merged entity, known as 'Ahold Delhaize' (AD) became the owner of top brands such as Food Lion, Giant Food (of Landover), GIANT Food Stores (of Carlisle), Hannaford, Stop & Shop, and Peapod, 'the country's leading online grocer'. It took two years for the successful integration of its business and in the year 2018, AD decided to push for growth in the US market, one of the biggest market segments for the company. It aimed for comparable sales growth, gain market share and also boost its online sales to approximately EUR7 billion by 2021. Though by August 2018, US grocery market size was recorded to be USD800 billion, the market was very crowded as traditional and local grocers were operating alongside the supermarket chains and retailers like Walmart, Kroger and Aldi (no-frills German grocer) and Lidl (German discount chain) for the market share. In addition to that, the entry of Amazon in grocery business had made the market extremely competitive. The customers were looking for quality shopping experience, variety, convenience as well as transparency and assurance. In such a scenario, would Ahold Delhaize's plan to run a data driven business and adoption of technology such as Artificial Intelligence, Robotics and Integrated Transportation Management system be able to guarantee its business growth in coming period?
Teaching and learning
This item is suitable for postgraduate courses.Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Americas
Country:
United States
About
Abstract
In 2015, Dutch grocer, Ahold paid USD28 billion to acquire Belgian food retailer, Delhaize. The merged entity, known as 'Ahold Delhaize' (AD) became the owner of top brands such as Food Lion, Giant Food (of Landover), GIANT Food Stores (of Carlisle), Hannaford, Stop & Shop, and Peapod, 'the country's leading online grocer'. It took two years for the successful integration of its business and in the year 2018, AD decided to push for growth in the US market, one of the biggest market segments for the company. It aimed for comparable sales growth, gain market share and also boost its online sales to approximately EUR7 billion by 2021. Though by August 2018, US grocery market size was recorded to be USD800 billion, the market was very crowded as traditional and local grocers were operating alongside the supermarket chains and retailers like Walmart, Kroger and Aldi (no-frills German grocer) and Lidl (German discount chain) for the market share. In addition to that, the entry of Amazon in grocery business had made the market extremely competitive. The customers were looking for quality shopping experience, variety, convenience as well as transparency and assurance. In such a scenario, would Ahold Delhaize's plan to run a data driven business and adoption of technology such as Artificial Intelligence, Robotics and Integrated Transportation Management system be able to guarantee its business growth in coming period?
Teaching and learning
This item is suitable for postgraduate courses.Settings
Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Americas
Country:
United States