Major Supermarket Chain Ahold Delhaize Aims to Bolster Profits through AI and Digitalization
Renowned for operating the Mega Image supermarkets, the Dutch-Belgian group Ahold Delhaize has its sights set on increasing baseline earnings per share while simultaneously boosting savings between 2025 and 2028. This ambition is anchored in its strategy to accelerate digital adoption and leverage artificial intelligence throughout its operations.
Projected Savings from Tech Innovations
By integrating AI and automation, particularly within logistics, distribution, in-store operations, and their back-office systems, Ahold Delhaize anticipates a substantial 5 billion euro in cumulative savings. Emphasizing this point, the group reveals plans to transition loyal customers from physical loyalty cards to the digital applications offered by the company. They project this shift will spike the number of active monthly users to 30 million by 2028, envisioning a significant digital engagement within their customer loyalty programs.
Preparing for Strategic Acquisition
The group is also recalibrating its strategy to acquire the Profi retail chain in Romania by 2025, as part of its growth and expansion objectives.
Ahold Delhaize Launches AD/01 Tech Hub
In line with these tech-forward initiatives, Ahold Delhaize recently disclosed the launch of a tech hub in Romania’s capital, dubbed AD/01. This tech studio aims to recruit around 250 high-level tech talents in the coming years, seeking to strengthen the group’s digital ecosystem capabilities.
Mega Image’s Ascending Trajectory
Mega Image has nearly 1,000 stores in Romania. The last available data from 2022 reflects that Mega Image saw a 16% jump in business to 8.71 billion lei with a net profit increase of 29%, reaching 139.65 million lei. In a definitive move towards expansion, Ahold Delhaize, managing 19 global brands including Mega Image, agreed in October 2023 to buy Profi Rom Food, which operates the Profi store network in Romania, from MidEuropa for 1.3 billion euros, marking a significant stride in their market consolidation efforts.
Key Questions and Answers:
– Why is Ahold Delhaize emphasizing digitalization and AI?
Ahold Delhaize is focusing on digitalization and AI to improve efficiency and customer experience, which can lead to increased profits and competitive advantage.
– What are the potential savings from the tech innovations?
The company anticipates 5 billion euros in cumulative savings from the implementation of technology like AI and automation, especially in logistics and back-office systems.
– How is Ahold Delhaize planning to grow its customer loyalty base?
The company plans to transition customers from physical loyalty cards to digital applications, projecting an increase to 30 million monthly active users by 2028.
– What is the significance of the acquisition of the Profi chain?
The acquisition of Profi is a strategic move to expand Ahold Delhaize’s market presence in Romania and strengthen its position in the European retail sector.
Key Challenges or Controversies:
– Integration of Profi: The successful integration of the Profi chain will be a challenge, involving the blending of corporate cultures, systems, and processes to realize the expected synergies.
– Data Privacy and Security: With increased digitalization comes the challenge of ensuring customer data privacy and security, which could be a potential controversy if not managed effectively.
– Workforce Impact: Implementation of AI and automation might lead to workforce displacement or require significant retraining, which might stir controversy regarding employment impacts.
Advantages and Disadvantages:
– Advantages:
– Enhanced operational efficiency and cost savings through digitalization and automation.
– Improved customer engagement and personalization with digital loyalty programs.
– Market expansion and increased market share through strategic acquisitions.
– Disadvantages:
– High initial investment costs for technology and acquisitions.
– Potential for job reductions or significant changes in employee roles due to automation.
– Risks associated with integration of new businesses and technology systems.
Related Links:
For more information on Ahold Delhaize and its operations, visit their official website: Ahold Delhaize.
Please ensure that any additional facts or contemporary developments you add are aligned with the timeline and context given (i.e., as of 2023) and are verified against credible sources.
The source of the article is from the blog elperiodicodearanjuez.es