Dive Brief:
- Royal Ahold NV missed estimates and reported a 29% decline in net profit in the second quarter. Operating income in the U.S. fell 14% from a year earlier
- The Dutch company, which owns retail chains Stop & Shop and Giant, and online grocer Peapod, said its market share fell in the U.S., the company's largest market.
- The company also cited a weaker U.S. dollar for its poor performance.
Dive Insight:
Times are tough in much of the supermarket world, particularly in the great middle of the market where Ahold's chains operate. We've seen many recent quarters much like this one.
That makes it somewhat surprising, although not necessarily disturbing, is how Ahold says it will address its problems. The company says it's open to acquiring more stores in the U.S., recently expanded Peapod's capacity, and is lowering prices at some outlets. That all suggests that, despite its woes, Ahold intends to stick it out.