Dive Brief:
- Ahold Delhaize USA’s e-commerce performance remains a powerhouse, with the division reporting 14.5% growth in digital sales during the second quarter of fiscal 2026, marking its ninth consecutive quarter of double-digit growth, parent company Ahold Delhaize announced in its earnings report.
- However, like many U.S. grocers, ADUSA’s comparable-store sales performance sagged, recording a less than 1% increase due to the Inflation Reduction Act. ADUSA’s net sales increased 1.4% at constant exchange rates to just under 13 billion euros ($15 billion).
- Ahold Delhaize adjusted its 2026 outlook in part because of the Inflation Reduction Act’s impact on stateside pharmacy sales, noting that it anticipates the federal law will depress U.S. sales by approximately $450 million.
Dive Insight:
ADUSA recorded lower topline growth due to decreased egg prices, pharmacy pricing changes and reduced SNAP benefits, as well as calendar shifts, Ahold Delhaize CFO Jolanda Poots-Bijl told investors Wednesday.
Looking ahead to the second half of 2026, the company expects pharmacy to continue to weigh on the business while egg prices will have less of an impact as they come down. She said the company expects some “minor variability” between quarters regarding the impact of SNAP as shoppers navigate the timing of benefits payouts and a reduction in funds.
Remodels will remain a priority for AUDSA as completed projects consistently perform above baseline expectations, she said. Food Lion is currently remodeling 93 stores in its Greensboro, North Carolina, market, and expects projects to be completed later this year. The banner is also preparing for its next round of remodels in the Richmond and Roanoke, Virginia, markets, Poots-Bijl said.
Food Lion is still a consistently top-performing banner for ADUSA, recording e-commerce sales growth of over 20% this quarter, Poots-Bijl told investors.
Along with a focus on e-commerce growth, ADUSA is also looking to other tech-focused initiatives. Ahold Delhaize President and CEO Frans Muller said in a statement that the company is looking to artificial intelligence through “three lenses: re-imagining business domains, optimizing existing processes and systems, and democratizing AI tools for all associates.”
In the coming quarter, Stop & Shop and The Giant Company will pilot AI-powered recipe features that allow customers to find meal inspiration and get personalized options based on their order history, Muller said during the company’s earnings call.
ADUSA’s private label assortment recorded 70 basis points of growth in Q2, Muller said. He noted that the overall company’s private label penetration has surpassed 40%, “an important milestone” for the grocer. This brings the company closer to its goal of 45% penetration by 2028, Muller noted to investors.
