Scale of Economies: Global grocer fields first worldwide promotion.
Call it the silver lining of consolidation. Supermarket giant Royal Ahold marshalled its 32 chains worldwide for a first-ever global promotion. The effort, dubbed World Champions, cut prices in nearly 4,000 stores in the U.S., Europe, Latin America, and Asia serving 30 million weekly shoppers.
The late September-early October promo was Ahold’s first crack at “taking advantage of our global scale to benefit our local customers and attract new ones,” says vp-marketing and sales development Denny Hopkins in a statement announcing the campaign. “We’re in the process of rapidly developing coordinated buying among our operating companies and joint-venture partners.”
The company funded huge price cuts by negotiating global master agreements with 15 major international suppliers and more than 100 local suppliers. Grocers in all countries discounted regional products to give the campaign a local flavor.
Ahold’s U.S. chains include Giant Food Stores, Tops, Stop & Shop, and BI-LO. The Dutch holding company reports worldwide sales of $35 billion, with $22 billion in the U.S.
