Shopping Centers Today

AUG 2015

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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Page 39 of 59

Supermarket giants merge to shave off costs European supermarket conglomerates Ahold and Delhaize are combining into one company valued at an aggregate $29 billion, with about 6,500 stores serving some 50 million customers per week across the U.S. and Europe. The combined entity, to be called Ahold Delhaize, would have aggregate net sales of $60.4 billion.The compa- nies generate more than half their sales in the U.S. For its part, Brussels-based Delhaize operates the Hannaford and Food Lion stores in the U.S., while Am- sterdam-based Ahold operates under the Giant and Stop & Shop banners. When the deal closes in 2016, Ahold shareholders will control 61 percent of the new company, and Delhaize shareholders will own the rest. The companies expect the merger will shave $558 million from annual operating expenses. "Ahold Delhaize aims to in- crease relevance in its local communi- ties by improving the value proposition through assortment innovation and merchandising, a better shopping expe- rience both in stores and online, invest- ments in value, and new store growth," said Frans Muller, CEO of Delhaize, in a prepared announcement. Ahold Del- haize will be Europe's largest publicly traded supermarket chain by market capitalization and will account for 5 percent of the U.S. grocery market, ac- cording to research firm Euromonitor. Gap hopes store closures will help revive profitability Gap Inc. says it will close 175 of its namesake stores, amounting to about a quarter of the total, mainly in North America and of which 140 will shut down this fiscal year. "Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers," Gap Inc. CEO Art Peck said in a prepared an- nouncement. The company "plans to right-size its specialty store fleet and streamline its headquarter workforce," a company statement reads. The closures will leave the company with about 500 Gap specialty stores in North America, though none of the 300 outlet stores will be affected. Some of the closures will take place in Europe. Gap Inc. will continue to operate about 1,600 company-owned and franchise stores in about 50 coun- tries. Further closures could lie ahead, Peck cautioned investors on a confer- ence call, characterizing this current wave as a "big, overdue tranche." SCT 40 S C T / A u g u s t 2 0 1 5 r e T a i l i n g T o d a y Shopping Center Management n Leasing n Redevelopment Bruce Strumpf, Inc. 2120 Drew Street, Clearwater, FL 33765 727-449-2020 • Fax 727-449-2212 email: Jill Strumpf, CSM President John F. Stoner, CCIM Director of Leasing MEET US AT BOOTH #2043! MEMBER T u r n Y o u r P r o p e r t y O v e r T o T h e E x p e r t s S e r v i n g F l o r i d a f o r o v e r 3 0 y e a r s w i t h o v e r 3 . 7 m i l l i o n s q u a r e f e e t

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