Big supermarket price hikes over for now, Ahold CEO says

Ahold Delhaize CEO Frans Muller has said the significant price hikes in supermarkets are over for the time being. The parent company of Albert Heijn, Bol, Etos, and Gall & Gall has had to adjust the technology of the self-scan checkouts to combat the increasing number of shoplifting incidents. Store supervision has also improved.

Supermarkets have had to deal with more shoplifting due to increased prices. Competitor Jumbo even saw almost all of its profits evaporate last year. Muller would not say how much the losses Ahold Delhaize suffered because of shoplifting but confirms that the group has implemented measures. "The way we look at our self-scan checkouts, the technique, and the supervision have been improved."

Muller is finally seeing signs of recovery after a long period of price increases. "We were dealt a huge blow due to inflation and the rising energy and raw material prices. Our biggest concern now is supporting household budgets, which are still under severe pressure in Europe and America, with our private labels, our promotions, and through agreements with our suppliers."

Muller said the prices in the stores can vary per category. "The onions and potatoes are becoming more expensive due to the moderate harvests. The same goes for the cacao and olive oil. But dairy, for example, is becoming cheaper."

Ahold is investing more in its home brands. "Our price favorites are doing very well. There are over 2,000 of them now, and they are contributing to the growth." The group is also working to bring costs down. Ahold wants to save a billion euros this year.

Ahold is doing particularly well selling groceries online. Turnover grew by double digits in the US and Europe. Webshop Bol is also growing, but not as fast, says Muller: "Bol is doing well, but we also notice that household budgets are under more pressure. Bol is still gaining share in a market that is growing more slowly."

A spokeswoman for the Albert Heijn chain says that the technical improvements and stricter supervision of the self-scan checkouts were already initiated earlier. "We also see no increase in theft in combination with self-scan. Theft in itself is not new, and we have taken numerous measures to address this in recent years. We do see an increase in aggression in the stores."