Dive Brief:
- Royal Ahold, owner of supermarket chains such as Stop & Shop and Giant, reported worse-than-expected earnings for the fourth quarter, as sales fell in the United States and the company suffered from currency rates.
- Sales in the U.S. dropped 6.7%. The Dutch company blamed the poor U.S. showing on a contracting food market and a decline from the year-earlier boost in sales as shoppers prepared for Hurricane Sandy.
- Comparable-store sales in the U.S. fell 2.1%, a far worse performance than the 0.6% increase of a year earlier, and worse than the 1% decline expected by analysts.
Dive Insight:
The most disappointing thing about Royal Ahold's earnings is what is not included — a break-out of Peapod's performance. The online grocery service may be Ahold's best hope in the U.S., and the Dutch parent is investing heavily in its digital operations. But there is nary a mention of Peapod in the trading statement. That's likely not related to anything other than accounting procedure, but it sure leaves us worried.
