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Ahold USA is claiming the eastern US in the name of its parent, Netherlands-based Royal Ahold -- one of the world's largest grocery retailers. The subsidiary oversees about 840 supermarkets in four chains and accounts for about three-quarters of its parent company's sales. The largest, Stop & Shop, in New England runs about 375 stores. Other chains include Tops Markets (New York, mostly) and two chains with similar names: Giant-Carlisle (Giant Food stores in four northeastern states) and Giant-Landover (mostly in the Baltimore-Washington, DC, area). Royal Ahold is reorganizing again and plans to sell Tops Markets and its foodservice arm U.S. Foodservice.
The Dutch grocer has come under pressure from shareholders to separate its US and European operations. Royal Ahold recently completed a strategic review that -- in addition to the Tops and U.S. Foodservice divestments -- calls for the appointment of separate European and US chief operating officers, a move which could pave the way for a split.
Previously, Ahold sold its BI-LO and Bruno's chains in the southeastern US to Lone Star Funds. The sale of its operations in the southeastern US (Bruno's and BI-LO) was a result of its troubled Dutch parent company's need to reduce debt and focus on its operations in the Northeast. Following a massive accounting scandal at U.S. Foodservice in 2003, Ahold USA restructured the management of its four remaining US supermarket chains. In mid-2005 it sold the 198-store Wilson Farms and Sugarcreek convenience store chains, operated by Tops Markets, to WFI Acquisition for an undisclosed sum. As a result of the restructuring, Ahold's retail support operations, including corporate functions, are now conducted by Stop & Shop. Consequently, Ahold USA closed its corporate headquarters in Chantilly, Virginia, in July 2004 and moved to the Boston area.
Ahold split its U.S. Foodservice subsidiary into two operating companies: a "broadline" segment, serving independent restaurants, schools and hospitals (about 87% of sales); and multi-unit (serving large quick-serve and casual-themed chain restaurants). The move revived speculation that Ahold eventually planed to sell part of the business.
Peapod provides online grocery shopping and delivery service to Giant Food and Stop & Shop customers. Ahold USA also operates about 235 gas stations.
President and CEO Bill Grize stepped down at the end of 2004. Beginning in 2005, Marc Smith and Tony Schiano, the CEOs of Stop & Shop/Giant-Landover and Giant-Carlisle/Tops, respectively, began reporting to Anders Moberg, president and CEO of Ahold USA's Dutch parent company. Smith retired in April 2006 and was succeeded by Jose Alvarez. Previously, Alvarez was EVP of Supply Chain and Logistics for the combined Stop & Shop/Giant-Landover organization.
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