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Ahold Delhaize CEO, Dick Boer, talked about the company’s American activities in an interview, saying the focus on fresh food is an important tool to keep the competition at bay.
Innovation is still possible
“First of all, we have a good offer in fresh food and we also lowered our prices over the last couple of years to be more competitive towards Walmart”, Boer said in a Bloomberg interview. He also talked about Amazon’s impact in the supermarket industry, but he does not believe the American online retailer can completely destroy the business. “Customers are not only looking for value, but also for product quality and freshness”, Boer concludes. “If you combine physical stores with online solutions, you have a very good answer to new entrants.” Boer feels the combination of a strong fresh product range and a good omnichannel approach is very important.
As of right now, other physical chains are still Boer’s major competitors, because there is only a limited percentage of food purchases that has moved online. Ahold Delhaize generates about 2 % of its US turnover from its online channels, but it targets an increase to about 5 % in the next few years.
The CEO says the industry still has plenty of potential for innovation: a personalized offer, with discounts for items customers actually buy is one such possible innovation. Supermarkets also have to help their customers achieve a healthier lifestyle, he feels.
