Dive Brief:
- Ahold Delhaize’s U.S. division kicked off fiscal year 2026 with strong e-commerce sales, which increased 14.3% during Q1, but recorded lackluster net and comparable-store sales growth, according to a Wednesday earnings report.
- Both net and comp sales in the U.S. increased 1.5% in Q1. Ahold Delhaize President and CEO Frans Muller said in the earnings release, noting that results were negatively impacted by a “sharp deflation” in egg prices, the Inflation Reduction Act’s impact on pharmacy pricing and lower SNAP eligibility.
- Ahold Delhaize plans to speed up Stop & Shop’s remodeling program and price investment rollout as the banner’s performance continues to improve.
Dive Insight:
Ahold Delhaize plans to keep a close eye this year on shifting egg prices, changes to pharmacy pricing and decreased SNAP eligibility, CFO Jolanda Poots-Bijl told investors. The company predicts its U.S. business will face an approximate $450 million impact on reported and com sales for 2026 from pharmacy pricing alone, while egg prices will impact next quarter’s top line before stabilizing in the second half of the year, she said.
As Ahold Delhaize carries out its Growing Together strategy, its U.S. operations will continue to focus on improving its private label assortment, making price investments and expanding e-commerce.
ADUSA’s private brands continue to outpace the rest of the store in both sales and volume. This year will also mark the company’s second round of price investments.
Stop & Shop has benefited from improvements to pricing and store experience, Muller said. He said ADUSA plans rollout price investments to all the banner’s locations by the end of this year and accelerate Stop & Shop’s store remodeling program, noting more than 40 store remodels are planned for 2026.
This quarter marked ADUSA’s eighth consecutive quarter of double-digital online sales growth, Muller said.
In Q1, the company recorded a record-high omnichannel penetration of 10%, with some banners already surpassing 11%, according to Poots-Bijl. Online sales through third-party partners such as Instacart grew by over 20%, she added.
Muller acknowledged recent economic shifts due to the ongoing war in the Middle East, specifically noting that heightened energy prices — while “not necessarily new for us” — are putting pressure on household budgets.
“We have managed through similar conditions before, and we are applying those learnings today,” he said. He added the company continues to invest in price, has strengthened its energy position by moving to longer-term contracts and increasing the use of renewable energy sources, and will take steps to ensure proportional and transparent cost increases from suppliers.
While ADUSA is still awaiting news on who its next CEO will be, its parent company is also undergoing several C-suite changes. Muller confirmed with investors his plans to retire, and Ahold Delhaize’s board has nominated Thierry Garnier, CEO of UK-based home improvement company Kingfisher, to succeed him in April 2027. Ahold Delhaize also recently announced that Claude Sarrailh, CEO of the Europe and Indonesia division, and Petr Pavlik, brand president of the Albert banner in the Czech Republic, are leaving the company.
