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1、Annual Report 2022OUR BUSINESS9Group highlights10Q&A with our CEO11Year in review16War in Ukraine:Impact and our response18Our great local brands19OUR LEADING TOGETHER STRATEGY25Evolving market trends26Our Leading Together strategy28Our integrated approach31Our growth drivers32Drive omnichannel grow
2、th32Elevate healthy and sustainable35Cultivate best talent38Strengthen operational excellence41Our value creation model44Engaging with our stakeholders48PERFORMANCE REVIEW51Targets and results52Financial review by segment73Outlook82Information about Ahold Delhaize shares85Multiple-year overview88RIS
3、KS AND OPPORTUNITIES90ERM principal risk profile91Principal risks and uncertainties93ENVIRONMENTAL,SOCIAL ANDGOVERNANCE101Introduction to ESG102Materiality assessment103Environmental106In focus:Carbon emissions inourvaluechain114Social116Governance119In focus:Diversity,equity and inclusion122Other E
4、SG disclosures129Ethics and human rights129Task Force on Climate-related Financial Disclosures(TCFD)132Tax transparency and responsibility139Our Management Board andExecutiveCommittee143Our Supervisory Board145Corporate governance147Letter from the Chair of theSupervisoryBoard153Supervisory Board re
5、port154Risk management160Declarations163REMUNERATION164Letter from the Remuneration Committee Chair165Executive remuneration principlesandprocedures167Management Board remuneration168Supervisory Board remuneration185FINANCIAL STATEMENTS188Consolidated income statement189Consolidated statement of com
6、prehensive income190Consolidated balance sheet191Consolidated statement ofchangesinequity192Consolidated statement of cash flows193NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS194PARENT COMPANY FINANCIALS258Notes to the parent company financial statements261ENVIRONMENTAL,SOCIAL AND GOVERNANCE(ESG)ST
7、ATEMENTS268OTHER INFORMATION293Assurance report on thefinancialstatements294Assurance report on the ESGinformation2022303Distribution of profit305Details of special shareholder rights305Details of shares without profit rights andnon-voting shares305Contact information307Key dates308Definitions and a
8、bbreviations309Cautionary notice316Ahold Delhaize Annual Report 20221Local mattersAhold Delhaize is a family of great local brands serving millions of customers every day.Our brands understand and serve the unique needs of local customers and communities while benefiting from the economies of scale
9、and efficiencies of a global business.We have lots of stories throughout this Annual Report that show how much local really matters to us at Ahold Delhaize and you can find even more online:Ahold Delhaize Annual Report 20222ReusablebagsMaking the switch will save millions of plastic bags annuallyAlb
10、ert Heijn announced it would no longer provide free plastic bags in fruit and vegetable departments across its entire store network after it already got rid of free plastic bags at the checkout.The brand instead offers washable fresh produce bags like the one pictured that can be used dozens of time
11、s.This decision saves 130 million bags,or 243,000 kilos of plastic,per year.The initiative is one of many reasons Albert Heijn was voted the most sustainable supermarket chain in the Netherlands for the sixth time in a row in 2022.See our website for more information.Sustainability is a journey in w
12、hich you gradually make the world a better place.All of the steps together make a big leap.Marit van Egmond,CEO Albert HeijnAhold Delhaize Annual Report 20223NourishingcommunitiesAlbert becomes the largest Czech food donor and then raises the barAlberts determination to support communities while fig
13、hting food waste made it the largest food donor in the Czech Republic!It has now committed to increase donations by 20%to 4.6 million food portions and donated refrigerated delivery vans to help food banks keep food fresher longer.Through initiatives like this,Albert keeps it share of unsold food be
14、low 1.5%of total volume.It also opened its first no waste store in 2022 with a zero-waste canteen that prepares great meals for associates from unsold products.See our website for more information.The role of food banks is crucial,and Czechs would appreciate more opportunities to get involved.The gr
15、oups most at risk of food and drug shortages during the pandemic have been single mothers and seniors.Veronika Lchov,ExecutiveDirector Czech Federation of Food BanksAhold Delhaize Annual Report 20224GoingelectricTransitioning to electric delivery is helping Giant Food reach its sustainability goalsG
16、iant Food in the U.S.began deploying fully electric vehicles in its Giant Delivers fleet in 2022 a positive step forward in the brands transition to all-electric delivery to customers.The new vehicles can cover 105 miles on one charge from Giants warehouse,so drivers dont have to make an extra stop
17、during daily deliveries.The vehicles are expected to displace over 210,000 gallons of petroleum and reduce greenhouse gas emissions by 63%over their lifetimes.Similar technology is also being using at our other brands,such as ,Delhaize and Stop&Shop.See our website for more information.Cleaner trans
18、portation is part of Giants larger sustainability efforts and commitment to supporting the local environment.Joe Urban,Vice President of DistributionAhold Delhaize Annual Report 20225LocalserviceVolunteering in local communities creates a sense ofbelongingOur brands are known for making a difference
19、 in communities.Rhonda Mauldin,Food Lion Store Manager in Simpsonville,South Carolina,says her sense of belonging is closely connected to her efforts to serve the community.She and her team have worked hard to let Simpsonville know Food Lion is there for them,by partnering with the local food bank a
20、nd Habitat for Humanity,cleaning up roadways,offering move-in bags of groceries to new residents and donating food and water to police and fire departments.See our website for more information.I want to be a part of the answer.I want Food Lion to be able to nourish and set our neighbors up for succe
21、ss in life.Im proud to work for a company that allows me to dothat.Rhonda Mauldin,Store ManagerAhold Delhaize Annual Report 20226Local solutionsSupporting customer purchasing power while reducingfood wasteBacked by customer research,Delhaize Belgium is making items close to their expiration date mor
22、e visible and accessible to customers,grouping them in the store in a no waste corner and accompanying them with clear messaging and attractive discounts.This will enable Delhaize to not only combat food waste,but support customers purchasing power in tough financial times.See our website for more i
23、nformation.For many families,it is these seemingly small items that do make a difference at the end of the month.As a retailer,we want to take responsibility for this and try to help where we can.Delhaize Belgium teamAhold Delhaize Annual Report 20227Strategic reportOUR BUSINESS9Group highlights10Q&
24、A with our CEO11Year in review16War in Ukraine:Impact and our response18Our great local brands19OUR LEADING TOGETHER STRATEGY25PERFORMANCE REVIEW51RISKS AND OPPORTUNITIES90ENVIRONMENTAL,SOCIAL AND GOVERNANCE101Ahold Delhaize Annual Report 20228OUR BUSINESSGroup highlights10Q&A with our CEO11Year in
25、review16War in Ukraine:Impact andourresponse18Our great local brands19Albert Czech Republic Ahold Delhaize Annual Report 20229 NET SALES187.0bn15.1%2021:75.6bn(+6.9%at constant rates)NET CONSUMER ONLINE SALES11.3bn8.9%2021:10.4bn(+4.9%at constant rates)FREE CASH FLOW22.2bn35.2%2021:1.6bn DIVIDEND PE
26、R COMMONSHARE1.0510.5%2021:0.95(40%of net profit)20021202262.8bn66.3bn74.7bn75.6bn87.0bn2002120223.5bn4.5bn7.6bn10.4bn11.3bn2002120222.2bn1.8bn2.2bn1.6bn2.2bn 2002120220.700.760.900.951.05 NET INCOME2.5bn13.4%2021:2.2bn UNDERLYING OPERATING INCOME3.7bn11.9
27、%2021:3.3bn UNDERLYING OPERATING INCOME MARGIN4.3%(0.1)pp2021:4.4%DILUTED INCOME PER SHARE FROM CONTINUING 2.5417.2%2021:2.17 DILUTED UNDERLYING INCOMEPER SHARE FROM CONTINUING OPERATIONS2.5516.5%2021:2.19 OWN-BRAND FOOD SALES FROM HEALTHY PRODUCTS454.4%1 pp2021:53.4%REDUCTION IN FOOD WASTE (T/MILLI
28、ON)4,533%13 pp2021:20%2022:3.38 t/million REDUCTION IN ABSOLUTE CO2-EQUIVALENT EMISSIONS(SCOPE1 AND 2)4,632%1 pp2021:31%2022:2,837 kt ASSOCIATE ENGAGEMENT SCORE79%=Maintain2021:79%Industry benchmark:77%MSCIINDEXAA=Maintain2021:AA1 Ahold Delhaizes 2018,2019,2021 and 2022 fiscal year consisted of 52 w
29、eeks,while 2020 consisted of 53 weeks.2 In 2022,after 2.5 billion cash capital expenditure(2021:after 2.4 billion cash capital expenditure).3 The 2018 figures have been restated for the change of accounting policies(IFRS 16 Leases).4 The 2021 figure was restated,see ESG statements for more informati
30、on.5 The reduction is measured against the restated 2016 baseline:5.09 t/million.See ESG statements for more information.6 The reduction is measured against the restated 2018 baseline:4,164 thousand tonnes CO2-equivalent emissions.See ESG statements for more information.GROUP HIGHLIGHTSAhold Delhaiz
31、e Annual Report 202210We talked to Frans Muller about how being a family ofgreat local brands helped us continue to meet the needs of all our stakeholders during another challenging year.Its been another challenging year around the world looking back,how has the company responded?It was indeed a dif
32、ficult year,that put a lot of strain on associates and communities particularly as a result of the war in Ukraine.Having worked in Ukraine and Russia earlier in my career,I felt great sadness and shock as I watched events unfold.Im grateful to,and proud of,the people in our brands,particularly in Ro
33、mania and the Czech Republic,who offered comfort,food and other necessary supplies,shelter and work to civilians fleeing violence.We also saw the impact on peoples mental well-being which was already under pressure after two difficult years of the COVID-19 pandemic.The war created uncertainty,fear a
34、nd a feeling of powerlessness for many.Our brands worked hard to support associates,continuing to invest into mental health and overall well-being.The wider impact of the war was felt across the world,but particularly in Europe,where we saw unprecedented inflation,rising commodity prices and soaring
35、 energy prices.What helped us to adapt is our unique strength as a family of great local brands and our proven Leading Together strategy.Our brands worked hard to keep prices as low as possible for customers and support local communities while implementing cost-savings programs to control margin pre
36、ssure,particularly in Europe.Our buying and merchandising teams did an amazing job.They negotiated firmly with suppliers and left no stone unturned to ensure we could continue to provide realistic prices,even in these challenging times.Im very grateful for their hard work on behalf of customers.This
37、 is a responsibility all companies across the food supply chain need to take.I want to thank all of my colleagues for putting customers and communities first during the year,especially while facing their own challenges.As we continue to navigate through choppy waters,I feel confident that together w
38、eve built a strong ship that can weather the storm.We laid a solid groundwork in 2022,guided by our Leading Together strategy,and we have great teams and the right knowledge and expertise to face whatever comes next.FRANS MULLER,PRESIDENT AND CEO OF AHOLD DELHAIZEQ&A WITH OUR CEOAhold Delhaize Annua
39、l Report 202211How are our great local brands adapting to this volatile environment?During the year,our brands focused on keeping healthy groceries affordable for customers.They invested in local communities and associates,along with strategic projects in digitalization,sustainability and store remo
40、deling.We worked hard to balance the needs of all stakeholders,and ensure our brands could keep caring for customers and communities during these challenging times.I already mentioned tougher supplier negotiations by our buying teams.There are many other examples of how our brands are keeping health
41、y food as affordable as possible.One Im especially proud of,and that shows the value of collaboration,was the adoption of Albert Heijns price favorite program by our other European brands.This program supports customers by providing the best prices on high-quality everyday products.During the pandem
42、ic,we saw people cooking at home more and enjoying the convenience of our brands ready-to-eat ranges.This year,our brands built on that trend by expanding their ranges,enhancing the affordability of their convenient meal solutions and finding other ways to help customers manage their spending.For ex
43、ample,all our brands provided online recipes and cost calculations to help customers cook fresh and healthy meals on a budget.Our brands also continued to expand their own-brand assortments,which Im proud to see growing stronger every day.And they used their highly tailored omnichannel loyalty progr
44、ams to provide personalized offers and solutions relevant to customers at every step of the shopping journey.In line with our shared values,our brands showed they care for people across their communities in many other ways.As a total company,we donated 218 million in cash and equivalent donations,su
45、ch as food and products,to charitable organizations.Food Lion Feeds reached an important milestone in 2022 when it donated its one billionth meal,and Albert became the largest food donor in the Czech Republic during the year.How did this environment influence Ahold Delhaizes financialresults?We felt
46、 the brunt of the external headwinds such as rising energy and raw materials prices in our European businesses.This impacted margin here,and we are working to bring it back to normal levels over time.While our U.S.brands were also affected,to a lesser extent,they were able to weather these headwinds
47、 better due to a stronger U.S.economy,higher consumer confidence and more energy self-sufficiency.With many factors outside of our control in 2022,we focused on things we could control,for the benefit of customers,communities and our company.While the magnitude of inflation made it impossible to avo
48、id raising prices,our brands were able to absorb part of the cost increases relating to energy,transport and labor by accelerating their work on our Save for Our Customers programs delivering record-high savings of 979 million.This enabled us to continue to invest in better customer propositions and
49、 keep shelf prices as low as possible.One person who has been passionate about driving our Save for Our Customers program is our CFO,Natalie Knight.In light of her decision in early 2023 to leave the company and return home to the U.S.,Id like to thank her for her contributions to our company.We wis
50、h her all the best in the future.In our Annual Report 2021,I mentioned our planned sub-IPO to fuel s growth potential.However,during this turbulent past year,we announced that we had decided to suspend the intention to sub-IPO in 2022 and would revisit when equity market conditions are more conduciv
51、e.During the year,our brands focused onkeeping healthy groceries affordable forcustomers.Q&A WITH OUR CEOAhold Delhaize Annual Report 202212The theme of this years Annual Report is Local matters why is this an especially important message for 2022?To us,local is not just about geography.Its about co
52、mmunities and our deep connections to them through our great local brands.Its about offering people jobs in the neighborhood,while supporting local charities and institutions they care about.Its about our ambition to be 100%gender balanced,100%reflective of our communities and 100%inclusive.The conc
53、ept that local matters is at the center of our vision to create the leading local food shopping experience and our purpose to help people eat well,save time and live better.Its part of everything we do.We are proud to operate the great local brands that customers love and trust brands deeply rooted
54、in their communities for generations.We believe that local is the right strategy for us,and what makes us unique.A high relative market share combined with brand strength is,in our view,the winning combination.And our customers appreciate us for it;we see that more than ever in these challenging tim
55、es.Year after year,our brands have connected with customers,supported causes important to their communities and provided healthy and affordable food.We believe that people remember this,they trust us for it,and they come to us in times of crisis as a result.What is the value for our local brands in
56、being part of an international company?Our unique portfolio of brands,operating across different markets in the U.S.and Europe,gives us some big advantages.We can leverage skills across the brands for example,by sharing learnings from a program or initiative thats proven successful at one brand to b
57、e locally adapted and very quickly implemented at another.Our ability to collaborate makes us more agile and gives us better speed to market.A good example of this is the AB Plus loyalty program.It was first implemented as the SuperPlus program at Delhaize Belgium and later rolled out at Alfa Beta i
58、n Greece.Our Digital and Tech teams adapted most of the SuperPlus functionalities into AB Plus,leveraging the existing technology and knowledge,and added even more capabilities.Since its launch in September 2022,the program has quickly gained popularity.Within the first few weeks,the AB app ranked a
59、mong the top trending apps in Greece,with 180,000 new user registrations and 280,000 active users in December 2022.We are working to unlock even more value by leveraging our transatlantic and regional scale.We have launched several projects that are helping us transform our omnichannel offering by c
60、ombining our skills on both sides of the ocean to find solutions and opportunities in areas like mechanization,retail media services,payments and last-mile and multi-fulfillment orchestration.Across Europe,we are working together to maximize our brands customer value propositions,leverage our scale
61、and build strong ecosystems between brands.For example,our teams in Central and Southeastern Europe are making strong progress on a joint strategy to accelerate growth.It leverages the brands proximity,addresses the similar challenges they face and helps them be better for customers and communities.
62、We also see regional examples of the ecosystems evolving in the Benelux.In the U.S.,we are uniquely organized to effectively deliver the Connected Customer Strategy.By providing innovative solutions to leverage scale and expertise through our Ahold Delhaize USA support organizations,the local brands
63、 can focus on serving customers.To us,local is not just about geography.Its about communities and our deep connections to them through our great local brands.This strategy owes much to our CEO Ahold Delhaize USA Kevin Holt,who has,among other things,led our omnichannel transformation in the U.S.Im g
64、rateful for his service and wish him all the best in his retirement later in 2023.To succeed Kevin,were pleased to be nominating JJ Fleeman,our current President&Chief E-commerce Officer at Peapod Digital Labs,for appointment to the Management Board at our General Meeting of Shareholders in April.We
65、re strengthening our portfolio through mergers and acquisitions and strategic partnerships,such as Albert Heijns partnership with Jan Linders Supermarkets in the Netherlands and our investments in advertising technology company Adhese.This supports us in creating an ecosystem of great local brands t
66、hat lead together.Q&A WITH OUR CEOAhold Delhaize Annual Report 202213In addition to strengthening the portfolio,what are some of your other most pressing priorities?While our growth drivers remain the foundation of our long-term strategy,weve also introduced four priorities that represent the concre
67、te steps we will take in the next three years through 2025.First,we want to build deeper digital relationships with our customers this is key to our brands future competitiveness.One example is Delhaize Serbias successful development of its My Maxi loyalty app.The encrypted data collected through th
68、e app is turned into useful insights,enabling the brand to offer personalized services that enhance the customer experience,such as by expanding the number of visible promotions.The app gained half-a-million users after only a few months,and was ranked number one on the app store charts,beating apps
69、 like TikTok.Next,we are working to lead the transformation to a healthy and sustainable food system.In 2022,we focused intensely on providing affordable healthy choices to our brands customers.We cemented our commitment to reducing carbon emissions from our operations(scope 1 and 2).And we strength
70、ened our target for reducing(scope 3)emissions across the value chain.Ive already mentioned the third focus area the work were doing to strengthen our portfolio and create an ecosystem of great local brands that lead together.And finally,we continue to accelerate our omnichannel transformation to be
71、 the best local operators and enable customers to shop whenever and wherever they want.Part of this is improving the profitability of our e-commerce business,something we took good strides forward on in 2022.For example, expanded its fulfillment center in Waalwijk,the Netherlands,to help support its
72、 growth and continue to provide good service at increasing volumes.The brand also acquired a majority stake in Cycloon,which delivers packages to Dutch customers on emissions-free cargo bikes.These four priorities are enabled by technology and amazing associates we cannot achieve any of it without t
73、hem.As our digital and technology agenda becomes more important and more costly we want to spread these investments over more sales by leveraging our scale.In addition,we are building additional revenue streams.In the U.S.,Peapod Digital Labs announced plans in 2022 to create an end-to-end,in-house
74、retail media business,building on the existing AD Retail Media network.Our investment in Adhese in Europe will also drive the development of digital advertising opportunities.When it comes to nurturing the best talent,we know that employing great people and giving them opportunities to grow is cruci
75、al to our success.We are investing to develop people and teams,build the skills necessary to address customers needs and prepare our teams for change.Ensuring their mental health and overall well-being is a priority.We also continue investing in inclusive leadership and making sure everyone is heard
76、 and valued and finds purpose in their work.Q&A WITH OUR CEOAhold Delhaize Annual Report 202214Last year you set more ambitious targets on climate and healthier sales how have you performed?Even during challenging times,we believe its important to keep making progress on our Healthy and Sustainable
77、strategy.We are committed to reducing our scope 1 and 2 emissions and to becoming net zero in our own operations in 2040.In 2022,we strengthened our CO2 emissions-reduction target for our entire value chain(scope 3)to at least 37%by 2030 and reiterated our commitment to become net zero in the entire
78、 value chain by 2050.This was a big decision for us.But we feel it reflects our responsibility to use our influence across the value chain to support the transition to a healthy and sustainable food system.It also brings us in line with the UNs goal of keeping global warming below 1.5C.Im proud that
79、 our Healthy and Sustainable strategy is bringing real benefits to customers,especially in providing healthy and affordable food.For example,several brands now offer dynamic pricing for products approaching their sell-by dates.This helps reduce food waste while benefiting customers wallets.Albert He
80、ijn expanded access to Nutri-Score guidance by making it visible on electronic price tags for 6,000 products and adding it to its app and e-commerce site.Hannaford in the U.S.launched its“Eat Well,Be Well A Path to Better Health”initiative,which will provide$1.5 million in funding to non-profit orga
81、nizations to host programs that increase access to healthy,fresh food tailored to the specific needs of an individuals health conditions,as well as nutrition education.Giant Food partnered with circular reuse platform Loop to offer shoppers products in reusable packaging.And Albert became the first
82、retailer in the Czech Republic to test a hydroponic system growing herbs and leafy vegetables right on the shop floor.To ensure that sustainability is fully represented at the Executive Committee level,we appointed a Chief Sustainability Officer,Jan Ernst de Groot,during the year.Youve said that cre
83、ating a workforce that reflects the diversity of customers is an important priority.How is the company doing on this?I feel very strongly about ensuring were an inclusive company,where people find equal opportunities to grow,and where everyone feels free to bring their true selves to work and to sho
84、p with our brands.Were not there yet,but we are working hard to reach our ambitious diversity,equity and inclusion(DE&I)aspiration to be 100%gender balanced,100%reflective of our communities and 100%inclusive and to be transparent about our journey.Im pleased that in the past year,we saw our inclusi
85、veness index go up by one percentage point,and the appreciation for our development opportunities rose by three percentage points.Two important areas where weve made progress this year are in pay parity and Business Resource Groups,or BRGs.Our brands are conducting gender pay research and pay equity
86、 analyses and implementing action plans to eliminate disparities.Our BRGs have gone from strength to strength across our brands and are at the forefront of advocating positive change.AD Pride in the Netherlands is one of the newest,and is committed to making positive advancements within the group of
87、 associates that identify as part of the LGBTQ+community.While its nice to have aspirations,we know the importance of measuring our progress.Weve been pleased to see gender representation increase across our senior leaders(VP and above)from 27%to 33%in 2022.We still have a long way to go;however,we
88、are convinced we are building momentum,not only in representation but in overall understanding about how diverse teams are better for the business and customers.We also published our second Human Rights Report in 2022 a big milestone for us.During a time when our world is facing extreme geopolitical
89、 challenges,we feel more than ever the weight of our responsibility to contribute to a more equitable society that recognizes and respects human rights.Im excited that weve brought on board a real champion of DE&I in our Chief Human Resources Officer Natalia Wallenberg,who joined the company in Janu
90、ary 2022.Shes already brought fresh perspectives and energy to our drive to become a more diverse,equitable and inclusive company.What are your expectationsfor theyearahead?We expect the year ahead to remain challenging,so it is crucial we keep doing the right thing for customers,communities and ass
91、ociates.We laid the groundwork for this in 2022 and have a strong strategy guiding us forward.We will keep anticipating the headwinds and opportunities to come in 2023 and balancing the interests of all our stakeholders delivering good results for customers,associates,communities and investors.Thank
92、s to our balanced portfolio,spread across the U.S.and a more challenged Europe,we expect to be able to achieve this.So,in 2023,we will stay focused on our omnichannel customer experience.We will continue to pursue our environmental,social and governance performance and our healthy and sustainable am
93、bitions.This includes working towards our scope 1,2 and updated scope 3 targets,transitioning to renewable energy,increasing the sale of healthy food,and reducing food waste and use of virgin plastics.And we will strengthen the portfolio of great local brands that helps us reach all of these goals.T
94、ogether,we will keep our eyes open for the right M&A targets,deliver on the external commitments weve made and collaborate more closely to leverage the strength of our Leading Together strategy.By continuing to work together across our family of brands,while showing how much local matters in all we
95、do,Im confident well continue to meet the demands of the future and remain the choice for customers in all our brands markets.Q&A WITH OUR CEOAhold Delhaize Annual Report 202215YEAR IN REVIEWAhold Delhaize Annual Report 202216YEAR IN REVIEWAhold Delhaize Annual Report 202217Few developments in 2022
96、impacted our business and people across our brands markets more than the war in Ukraine.The most devastating impacts,of course,were within Ukraine,where countless lives were lost,and homes,businesses and cities destroyed,in a massive humanitarian tragedy.But the shock waves spread throughout Europe
97、and the world as people struggled to deal with the wide-ranging macro-economic impacts and care for refugees and others impacted by the war.This chapter outlines our response to the conflict from a crisis management and humanitarian perspective.CRISIS RESPONSEAt the start of the war,we activated our
98、 crisis management organization to coordinate the Group and brand response,make recommendations for risk mitigation,and prepare executive leadership decisions on topics such as humanitarian aid,product sourcing,people safety,cyber defense and legal and regulatory compliance.We gathered crisis manage
99、ment representatives from all the brands in five workstreams:Communications and Public Affairs;Human Resources;Direct and Not-for-Resale Sourcing;IT/Information Security Office;and Humanitarian aid.We adapted and coordinated our approach as the situation developed.HUMANITARIAN AIDWhile we do not hav
100、e operations in Ukraine,as the events unfolded,our European brands in the region quickly jumped into action and provided crucial support to those affected by this war.We supported humanitarian relief efforts at a global and a local brand level throughout the year.Ahold Delhaize and our brands in Eur
101、ope donated more than 1.5 million in cash and in-kind support,and generated an additional 1.2 million in customer and associate donations to organizations like the Red Cross to provide humanitarian relief on the ground in Ukraine and in neighboring countries and support civilians fleeing the escalat
102、ing violence.In addition to monetary donations,our brands provided assistance in many other ways.Mega Image in Romania gave direct donations of food and hygiene materials to refugee centers in cooperation with the Red Cross and a local NGO.They placed donation boxes in 180 stores to collect non-peri
103、shable food for distribution by the Red Cross.Local associates donated blood and waited at the central train station for displaced Ukrainians to offer a hot meal and comfort.Others worked at Red Cross warehouses,sorting products for refugee care packages containing items such as hygiene products,wat
104、er and food.Albert in the Czech Republic sent hundreds of pallets of food and non-food supplies to food banks,refugee centers and affected cities in Ukraine,in cooperation with the Federation of Food Banks,non-profit partners and the Ukraine embassy.The brand made it easier for associates impacted b
105、y the war to get help by making its Albert helpline available in the Ukrainian language so specialists could help colleagues with questions about the war and how to manage work and residence visas or health insurance.Delhaize Belgium donated much-needed surgical face masks and emergency generators,e
106、nsuring 95,000 Ukrainians can access water and heat.B donated hundreds of thousands of euros worth of products,including diapers and soap,but also clothes and books out of its current stock,to refugee shelters.Albert Heijn collected cash donations and offered customers an option to donate returnable
107、 bottle deposit vouchers and Albert Heijn Air Miles to benefit the Red Cross and Giro 555,a campaign by Dutch aid organizations to offer food,shelter,medical care and clean drinking water assistance.The effort raised 327,000 for Giro 555 and 420,000 for the Red Cross.SAFETY AND WELL-BEINGAhold Delha
108、ize and the brands also put local measures in place to support the safety of associates.Our brands provided support to associates impacted by the war and looked for opportunities to offer employment to civilians fleeing from violence.We supported local and European aid organizations and tracked legi
109、slative changes,especially related to the protection rights of residency and employment.Our brands extended employment conditions and paid travel benefits for Ukrainian associates who returned to help their families or join the army,and ensured daily contact with Ukrainian and Russian associates and
110、 their families in directly impacted countries to determine how to best support them.Human Resources teams identified associates potentially impacted by the war to make them aware of available support tools,including compensation to associates returning to war,mental health support call lines,webina
111、rs on resilience in times of crisis,and volunteering and donation opportunities.Our brands leveraged job sites and contact with local authorities and NGOs supporting employment opportunities to Ukrainian refugees.They adapted recruitment processes to the EU Temporary Protection Directive,triggered t
112、o offer assistance to people fleeing the war in Ukraine.For example,Mega Image gave Ukrainian citizens seeking asylum in Romania the opportunity for full-time,part-time and temporary positions.CYBER DEFENSEAhold Delhaizes Information Security Office prioritized and strengthened its security monitori
113、ng and response capabilities in 2022.The team conducted reviews to identify and improve risk areas within the IT systems and applications of the company and our partners and suppliers in response to potential changes in the risk profile.As the conflict continued,we saw cyber warfare targeting the Uk
114、rainian public IT infrastructure,leading to services being unavailable,and disruptions due to Distributed Denial of Service attacks.We have not yet identified any major instances of cyber warfare targeting commercial companies as a result of the conflict,but we are closely monitoring the situation f
115、or any potential changes to the risk profile.LEGAL AND REGULATORY COMPLIANCEAhold Delhaize and its brands developed due diligence processes to identify suppliers that may be the subject of sanctions related to Russias invasion of Ukraine.We adopted a global sanctions policy that set out the standard
116、s Ahold Delhaize and its brands should comply with to meet our legal obligations related to the imposed sanctions.It established a due diligence framework to support and monitor continued compliance with relevant sanctions and provides direction to anyone with questions or concerns.WIDER IMPACTSThe
117、war in Ukraine has destabilized the world economy,leading to a severe energy crisis in Europe and contributing to higher inflation,rising interest rates and slowing economic growth in Europe and the United States.Blockades of Ukrainian grain exports have increased food prices and exacerbated continu
118、ing supply chain disruptions.Consumers have been grappling with rising costs of living and significant pressure on household budgets as a result of all these factors.You can find more information about the wider macro-economic impact of the war in Ukraine on our brands and businesses,along with our
119、response,throughout this Annual Report,in particular in Evolving market trends,Our growth drivers,Performance review,and the Financial statements.WAR IN UKRAINE:IMPACT AND OUR RESPONSEAhold Delhaize Annual Report 202218Ahold Delhaize is a family of great local brands serving millions of customers ea
120、ch week in the United States,Europe and Indonesia.414,000associates160 millioncustomers served every week,both in stores and online19great local consumer-facing brands27,659stores serving local communities in Europe and the United States31 Excluding our joint venture brands associates.2 Including ou
121、r joint venture brands.3 Excluding our joint venture brands stores.OUR GREAT LOCAL BRANDSAhold Delhaize Annual Report 202219THE UNITED STATESEUROPEJOINT VENTURESThe United States is our biggest market.Our brands operate some of the countrys most established,innovative andwell-known supermarkets ando
122、nline grocers,all along theEast Coast.Our leading brands in Europe serve customers through storeformats tailored to their needs,including innovative online businesses.While some have beenhousehold names for morethan a century,they remainground-breaking andforward-thinking retailerstoday.Our joint ve
123、ntures,Super Indo in Indonesia and Pingo Doce in Portugal,are among the leading supermarket brands in their respective countries.2,051+3stores2021:2,0485,608+204stores2021:5,4041,549+160pick-up points2021:1,389263+10pick-up points2021:253OUR GREAT LOCAL BRANDSAhold Delhaize Annual Report 202220THE U
124、NITED STATESFood Lion is an omnichannel retailer committed to nourishing its neighbors during the moments that matter most.Through its“Count on me”culture,Food Lion fosters a sense of belonging for all associates and customers.Its 82,000 associates are passionate about caring for the towns and citie
125、s they serve.Market area:Delaware,Georgia,Kentucky,Maryland,North Carolina,Pennsylvania,South Carolina,Tennessee,Virginia and West VirginiaSTORES1,108+4Stop&Shop offers a wide assortment focused on fresh,healthy options at a great value.Customers can shop in-store or online for delivery and same-day
126、 pickup.The brand prides itself on fighting hunger in its communities and other incredible acts of care.Market area:Connecticut,Massachusetts,New Jersey,New York and Rhode IslandSTORES400-6The GIANT Company is an omnichannel retailer,serving customers through stores,pharmacies,fuel stations,online p
127、ick-up hubs and its grocery delivery service.The brand is changing the customer experience,creating healthier communities and connecting families for a better future.Market area:Maryland,New Jersey,Pennsylvania,Virginia and West VirginiaSTORES193+3PICK-UP POINTS655+100PICK-UP POINTS375+5PICK-UP POIN
128、TS187+14Hannaford makes it easy and convenient to shop for great fresh food and find healthy options,both online and in its stores.Hannaford is in the community,connected to local farmers and producers and a part of its customers day.Market area:Maine,Massachusetts,New Hampshire,New York and Vermont
129、STORES185+1Giant Food fits all the ways todays busy consumers want to shop whether in-store,via Giant Pickup or through home delivery from Giant Delivers,with same-day speed.At Giant,local is a commitment,not just a label.Market area:Delaware,District of Columbia,Maryland and VirginiaSTORES165+1Fres
130、hDirect is a leading online grocer committed to delivering the highest quality,freshest food.The company creates food experiences and drives simple,healthy solutions to make every day better for customers.By working directly with growers,producers and local food innovators,FreshDirect provides the b
131、est in culinary exploration.As a homegrown New York City brand,FreshDirect is integral to the fabric of food culture in the city.Market area:The greater New York Tri-State areaGROCERY ITEMS DELIVERED TO CUSTOMERS EVERY WEEK3mPICK-UP POINTS170+38PICK-UP POINTS162+3OUR GREAT LOCAL BRANDSAhold Delhaize
132、 Annual Report 202221THE UNITED STATES CONTINUEDPeapod Digital Labs powers digital and commercial solutions and capabilities to accelerate the omnichannel experience for the local brands of Ahold Delhaize USA,helping fast-track new products,understand market trends,and develop solutions that meet th
133、e changing needs of customers.Retail Business Services,LLC,is the services company of Ahold Delhaize USA,providing services to the U.S.brands.It leverages the scale of the local brands to drive synergies and provides industry-leading expertise,insights and analytics to support their strategies throu
134、gh a variety of services,including Information Technology,Retail Innovation Center of Excellence and Indirect Sourcing,among others.ADUSA Supply Chain is a family of supply chain companies that together support one of the largest supply chains on the East Coast,serving the omnichannel grocery brands
135、 of Ahold Delhaize USA through a self-distribution model for the future.SUPPORT ORGANIZATIONSUPPORT ORGANIZATIONSUPPORT ORGANIZATIONOUR GREAT LOCAL BRANDSAhold Delhaize Annual Report 202222EUROPEAlbert Heijn has evolved from a single family-owned grocery store 135 years ago to a leading food tech co
136、mpany today.Filling more than six million plates daily comes with a responsibility.Thats why Albert Heijn works every day to deliver on its mission:“Together we make eating better the easy choice.For everyone.”Market area:The Netherlands and Belgium STORES1,228+106With 47 million unique products off
137、ered, customers have a wide range of choices.Thats why 13 million Dutch and Belgians shop on its online retail platform each year.B also works with over 51,000 local entrepreneurs,who sell through its platform.Market area:The Netherlands and Belgium NUMBER OF PLAZA PARTNERSMore than51,000+2,500Etos,
138、the largest health and wellness platform in the Netherlands,has been customers trusted drugstore for over 100 years.With stores throughout the Netherlands,there is always an Etos nearby where qualified druggists can offer expert advice.Etos helps its customers to feel good both in-store and online.M
139、arket area:The Netherlands STORES522-5PICK-UP POINTS59 Gall&Gall has been selling liquor since 1884 and is the largest specialist in the Netherlands.Founder Maria Gall had a motto:No order too large,no order too small,no order too far.Although times have changed,Gall&Galls passion to help and inspir
140、e customers has remained.Market area:The Netherlands STORES603-6Delhaizes store formats Delhaize,AD Delhaize,Proxy Delhaize and Shop&Go offer a wide range,unique experience and quality service,including online shopping via pick-up points and home delivery.Delhaizes commercial proposition focuses on
141、health and quality with respect for the environment.Market area:Belgium and LuxembourgSTORES830-4Albert offers a great omnichannel shopping experience,with a new Fresh urban format,supermarkets and hypers,and the recent launch of grocery delivery in selected cities.Customers enjoy the My Albert loya
142、lty program and healthy inspiration through its popular own brands.And Albert provides community support through its Albert Foundation.Market area:Czech RepublicSTORES335+1PICK-UP POINTS120 OUR GREAT LOCAL BRANDSAhold Delhaize Annual Report 202223EUROPE CONTINUEDJOINT VENTURES Alfa Beta Vassilopoulo
143、s(“Alfa Beta”)makes the shopping experience unique because each customer is unique.Through five different formats,the brand is here for customers,associates and communities,offering the finest products and protecting the environment.Market area:GreeceSTORES632+40Mega Image serves customers under the
144、 Mega Image,Shop&Go and Gusturi Romneti brands,offering fresh food,quality,healthy products and advice and a unique assortment of own brands.The team is passionate about a healthy lifestyle,social causes and the environment.Market area:RomaniaSTORES956+36Super Indo is Indonesias leading supermarket
145、chain.It goes the extra mile to maintain the freshness and quality of its products,making healthy food accessible and affordable anywhere and anytime.Super Indo is the right choice for shopping that is always fresher,affordable and closer.Market area:IndonesiaESTABLISHED1997PICK-UP POINTS84+14PICK-U
146、P POINTS0 0Delhaize Serbia is the largest store chain in Serbia.With five formats Maxi,Mega Maxi,Tempo,Shop&Go and Maxi online it operates supermarkets known for their wide range,high-quality fresh products and great prices and promotions;modern neighborhood stores for everyday and on-the-go shoppin
147、g;and hypermarkets for family shopping.Market area:SerbiaSTORES502+36SUPPORT ORGANIZATIONThe services company of Ahold Delhaize Europe,EBS provides professional services in Human Resources,Finance and Not-for-resale Sourcing.It leverages scale and volume to drive synergies and provides industry-lead
148、ing expertise,insights and analytics to help the European brands achieve their strategic goals.Pingo Doce brings quality and innovation,and a unique shopping experience,because the best families deserve the best supermarket.Its products guarantee excellent value for money,which strengthens the brand
149、s commitment to customers.Market area:PortugalESTABLISHED1992PICK-UP POINTS0-4OUR GREAT LOCAL BRANDSAhold Delhaize Annual Report 202224OUR LEADINGTOGETHER STRATEGYEvolving market trends26Our Leading Together strategy 28Our integrated approach31Our growth drivers32Drive omnichannel growth32Elevate he
150、althy and sustainable35Cultivate best talent38Strengthen operational excellence41Our value creation model44Engaging with our stakeholders48Mega Image RomaniaAhold Delhaize Annual Report 202225Our Leading Together strategy helps Ahold Delhaize navigate and address evolving market trends collectively
151、and across each of our brands.In this section,we describe some of the most relevant trends developing in our brands markets and some examples of how we are responding.For more details on our response,see Ourgrowth drivers.DriveomnichannelgrowthElevate healthyand sustainableCultivatebest talentStreng
152、thenoperationalexcellenceINCREASING ECONOMIC HEADWINDSRising costs across the value chain including from increasing commodity prices supply chain delays and labor shortages continue to create a challenging environment for the retail industry.Food retailing is especially impacted by these dynamics an
153、d the resulting inflation.All of these forces are leading to rising prices and creating a cost-of-living crisis for consumers.In the United States and some European countries,inflation has reached its highest level in more than 40 years.This situation was building through 2021 but has surged on the
154、back of supply-demand imbalances and soaring commodity prices,compounded by a combination of impacts related to the COVID-19 pandemic,an economic slowdown in China and the war in Ukraine.While inflation is expected to peak this year,we believe it will remain elevated until at least 2024.Russias inva
155、sion of Ukraine continues to destabilize the global economy and make it more likely we will continue to see significant or escalating geopolitical disruption.The war has led to a severe energy crisis in Europe that is further exacerbating already pressured supply chain networks,sharply increasing th
156、e cost of living and hampering economic activity.Blockades of Ukrainian grain exports have also increased food prices and worsened conditions for low-income families worldwide.Our strategic response The Ahold Delhaize brands are laser focused on ensuring that customers have access to affordable,heal
157、thy choices;see Drive omnichannel growth for details.They are developing new profit pools,including monetization(e.g.,retail media networks)and B2B services,to help fund our strategic initiatives,deliver on our Save for Our Customers targets and reduce pressure on our core business.RISING DIGITAL GR
158、OWTH ANDENGAGEMENTWhile the unprecedented growth in online shopping influenced by the pandemic has slowed from its highs in 2020 and 2021,digital and online sales are expected to continue to grow.By 2030,e-grocery could make up 18-30%of the food-at-home market,which includes both grocery and meal de
159、livery.As COVID-19 restrictions have eased,customers have returned to stores.However,they continue to flex their use of online and offline channels,often combining both on their path to purchase.Consumers have grown accustomed to personalized shopping experiences and the other perks of online shoppi
160、ng,including loyalty programs,at-home deliveries,coupons,shopping lists,product suggestions and special offers.They are looking to engage with brands digitally in new and innovative ways.Our industry is putting more emphasis on omnichannel strategies and leveraging data to engage with consumers acro
161、ss channels.Retailers are also seeing a growing need to use the data they collect through their digital channels to improve their ability to satisfy customers while balancing customer expectations and legislation on data privacy.Our strategic responseWe are working with digital partners in both the
162、U.S.and Europe to improve how we can provide shoppers with seamless,highly tailored and relevant customer experiences and promotions.For example,Ahold Delhaize acquired a minority stake in adtech company Adhese in Europe and partnered with CitrusAd in the U.S.to accelerate the development of innovat
163、ive digital advertising opportunities for B2B partners that are more relevant to our brands customers.We also continue to work with Kickstart AI,which aims to build practical artificial intelligence(AI)solutions that solve real business problems,leveraging the joint talent of leading Dutch companies
164、 including Ahold Delhaize,ING,KLM,and public transport provider NS.Over the past year,we have worked on a Kickstart AI Food Waste Reduction Challenge in partnership with our Delhaize Belgium brand.EVOLVING MARKET TRENDSAhold Delhaize Annual Report 202226INTENSIFIED FOCUS ON VALUE BUT NOT AT THE COST
165、 OF QUALITYPrice sensitivity is expected to increase further among all consumers,but particularly lower-income consumers,who will become even more focused on saving money.More than half of low-income consumers in Europe,and 42%of consumers on average,plan to look for ways to save money while grocery
166、 shopping.This is strongly driven by the rising inflationary pressure that reduces the income consumers have available to spend on groceries.At the same time,consumers who shop at entry-price levels today are less willing to make trade-offs on the quality of these products.They expect the quality of
167、 entry-price tier products to match that of the main national brands.For higher-income groups,we expect to see continued growth in sales of premium products.High-income groups are fueling demand for higher-quality,fresher products and are also willing to shift to other formats,such as farmers market
168、s or independent bakeries and delis,to obtain the level of freshness they seek.While serving both groups simultaneously may be challenging,one thing that is similar across all income groups is a trend towards seeking high quality in whatever categories they do purchase.Our strategic response Our bra
169、nds are focused on lowering costs to provide customers with the quality,healthy options and value they require.For example,in July,Alfa Beta launched its own version of Albert Heijns successful pricing campaign,called“Price Favorite products Low Prices Every Day”to combat rising inflation.The brand
170、offers over 700 price-favorite,high-quality products every day.It was a great example of how we can share knowledge and expertise across our great local brands.Giant Food added to their existing value offering by expanding their“More for You”value campaign,introducing a bulk item aisle that offers s
171、avings on larger-sized products.The brand also ran a new promotion through its Giant Flexible Rewards loyalty program that enabled customers to redeem rewards points for highly sought-after own-brand products such as bread,milk,vegetables and bottled water at reduced point requirements.CONTINUED ATT
172、ENTION TO HEALTH,WELL-BEING AND SUSTAINABILITYWe expect to continue to see a growing trend of consumers focusing on healthy diets and shifting their spend to more sustainable products.This trend is primarily driven by high-income groups and younger generations.Consumers are also looking to purchase
173、products from companies that boast sustainability and environmental consciousness;the sales growth of the 10 brands most bought by eco-friendly customers was 15 percentage points higher than market growth(Europanel).Our strategic response We continue to make progress on our Healthy and Sustainable s
174、trategy,with our brands carrying this out in ways most relevant to their local communities.For example,to start a bold and inspiring journey to make its own green energy,Mega Image in Romania installed solar panel systems on 20 of its stores.The team will also install on-site monitors to allow custo
175、mers to see how much green energy is produced by these solar panel systems.Several of the U.S.brands have introduced new sustainable and health-conscious initiatives.For example,Giant Food launched circular reuse platform Loop,enabling local shoppers to purchase a selection of more than 20 products
176、in reusable packaging.Hannaford introduced its“Eat Well,Be Well A Path to Better Health”initiative,providing funding for grantees to host programs increasing consumer access to healthy,fresh food tailored to specific health needs.Participants receive nutrition education designed to help them achieve
177、 and maintain their health and wellness goals.GROWTH OF CONVENIENCE ANDSPEEDDelivery options and online offerings have become more differentiated to serve the specific needs of consumers and specific shopping missions for example,more companies are offering faster delivery in addition to more tradit
178、ional scheduled delivery.Consumers are increasingly splitting their shopping basket across more than one online food player and/or delivery option to meet their varying demands.Currently,one-third of European consumers who shop online weekly get their groceries at three or more e-commerce players.In
179、 the U.S.,customer preference for online and delivery orders increased by 50%during the pandemic and is expected to rise further,while home delivery is slowly overtaking the previous preference for the click-and-collect model.As the trend of at-home eating prevails,a majority of consumers surveyed s
180、aid they plan their meals ahead of time,with 30%planning a“couple of days”ahead and 46%planning earlier on the same day as the meal.Consumers are prioritizing convenience and will opt for brands that offer healthy meal plans,meal kits,grab-and-go and ready-to-cook or-steam options.Our strategic resp
181、onse We are investing in different models to meet ever-evolving customer expectations and needs on delivery methods and speed.For example,Alfa Beta announced collaborations with on-demand delivery services Wolt and InstaShop to offer additional,fast online shopping and delivery options to customers.
182、Albert Heijn,similarly,is continually increasing its delivery options and capacity.For example,at the end of 2021,it opened its eighth Home Shop Center and developed more home delivery options in cooperation with Thuisbezorgd.nl.The U.S.brands expanded their partnership with Instacart to introduce n
183、ew virtual convenience storefronts,including Food Lion home delivery,GIANT Instant Delivery,Hannaford Now,Shop&Stop Express and Giant Food Convenience.Working with Instacart enables the brands to offer customers delivery in around 30 minutes from over 1,400 of the brands locations up and down the Ea
184、st Coast.You can find more on the macro-economic trends impacting our business in Macro-economic trends under Targets and results.EVOLVING MARKET TRENDSAhold Delhaize Annual Report 202227Our Leading Together strategy provides a solid framework as we continue to evolve our business model to serve cus
185、tomers omnichannel shopping journeys and achievestrong results.The core values we share across Ahold Delhaize guide us in our day-to-day work and help us create healthy,engaged and inclusive workplaces reflective ofthe communities our brandsserve.Our companys four long-term growth drivers are helpin
186、g us to fulfill our purpose,achieve our vision and prepare our brands and businesses for tomorrow.OUR PURPOSERead more on page 29.Eat well.Save time.Live better.OUR VALUESRead more on page 31.CourageIntegrityTeamworkCareHumorWe drive change,are open minded,bold and innovativeWe do the right thing an
187、d earn customerstrustTogether,we take ownership,collaborate and winWe care for our customers,our colleagues,and our communitiesWe are humble,down-to-earth,and dont take ourselves too seriouslyOUR VISIONRead more on page 29.Create the leading local food shopping experience.OUR GROWTH DRIVERSRead more
188、 on page 32.Drive omnichannel growthElevate healthy and sustainableCultivate best talentStrengthen operational excellenceCreate seamless digitally enabled experiences with a compelling value proposition across all shopping and mealoccasionsProvide inspiring,healthy and affordable food options for al
189、l and achieve our sustainability commitmentsAttract,develop and retain the best talent with an engaging associate experience that drives highperformance,inclusion and growthSave for our customers,leverage scale,and use technology and data to build the futureOUR LEADING TOGETHER STRATEGYAhold Delhaiz
190、e Annual Report 202228 OUR PURPOSEThe three things everyone deserves from us.Eat wellNot only do we want to make it easy for peopleto choose a healthy,balanced diet,butalso have access to products that are highquality,responsibly sourced and of course,delicious!Save timePeople are busy.And in this h
191、ectic world,anything we can do to make things quicker,smoother and easier is a good thing.Live betterFor some,this means healthy eating.For others,shopping more inexpensively or more ethically.Whatever it means to our customers,associates and communities,were committed tohelping make it happen.OUR V
192、ISIONLeadingWe always strive to be number one in ourmarkets not only in market share butalsoinour ambition to be a frontrunner ininnovation.LocalWe have a unique opportunity through our great local brands to leverage our scale while understanding and serving the needs of local customers and communit
193、ies.FoodFood is not the only thing we sell,but it has been at the core of our business for 150 years.We love food and pride ourselves on offering customers healthy,quality and delicious choices in all our markets.ShoppingWe serve our customers needs from the time they start planning what they want t
194、o buy and eat,during their shopping trips and all the waythrough to the moment they enjoy their meal.ExperienceWe stay connected with our customers so wecanoffer the seamless omnichannel shoppingexperience that gives them more timeto enjoy the moments in life that matter most to them.OUR PURPOSE AND
195、 OUR VISIONAhold Delhaize Annual Report 202229While our growth drivers remain the foundation of our long-term strategy,we have also introduced four priorities that represent the concrete steps we will take in the next three years.Through 2025,we will focus on these priorities,which center around cus
196、tomers,our Healthy and Sustainable strategy our portfolio and our brands operations.These four priorities are enabled by technology and nurturing the best talent,both of which are essential to everything we do.OUR STRATEGIC PRIORITIESAhold Delhaize Annual Report 202230We link our strategy,values and
197、 priorities to our material ESG topics,principal risks,the underlying KPIs,our targets and our contribution to the Sustainable Development Goals(SDGs)to get an integrated overview of our business and contribution to society as a whole.Our KPIs and targets for ESG topics are included inour material t
198、opics.We align our KPIs and measurable targets against our growth drivers(long term).See page 104 for an overview of KPIs and targets.PRINCIPAL RISKSCompetitive environment and macro-economic developments Omnichannel and digital growth Societal expectations on ESG topicsClimate-related risksLegislat
199、ive environmentPeople attraction,development,retention and well-beingProduct safetyOUR INTEGRATED APPROACHAhold Delhaize Annual Report 202231Drive omni-channel growth96%4.9%2022 net sales from markets where our brands have a#1 or#2 position2022 net online consumer sales growth(at constant rates)1,81
200、215.7 mlnpick-up points by the end of 2022monthly active mobile app users(2022)OUR AMBITIONCustomers take a journey with our brands every day,interacting at many touchpoints during their busy lives.Our brands work to make this journey as seamless and convenient as possible through our omnichannel of
201、fering of interconnected online and offline channels.Weve found that this is the shopping experience customers prefer because it enables them to shop on their terms:when and how they want.Our omnichannel offering gives our brands lots of ways to help customers navigate the choices they encounter,fro
202、m planning to shopping to enjoying their meals,and fulfill our purpose of helping people eat well,save time and live better.The seven main areas that help our brands facilitate the customer journey are what we call our omnichannel customer value proposition.Three of these areas fresh and healthy,loc
203、al and trusted and personalized are where our brands really excel and differentiate themselves.A typical customer journeyA customer plans a weekly shopping trip through one of our brands apps.While adding previous purchases to the shopping basket,a personal offer for falafel comes up.The app suggest
204、s grilled veggie skewers to go with it and the customer adds the ingredients to the basket quickly and easily planning a healthy dinner.Since the customer is too busy that day to shop in store,ordering through click and collect via a mobile phone means everything will be ready for pickup when they g
205、et to the store.On a less hectic weekend day,the customer returns to the store to explore local cheeses and fresh breads from the bakery,checking out quickly and seamlessly with self scan.Our omnichannel customer value proposition outlines seven areas that impact the customer journey:OUR GROWTH DRIV
206、ERSAhold Delhaize Annual Report 202232STRATEGIC CHOICES ANDCHALLENGESUnlocking new revenue streams while safeguarding customer dataData is becoming an increasingly important part of doing business for food retailers;it powers everything we do and helps our brands provide a more personalized and rele
207、vant experience to customers.We are uniquely positioned to collect valuable data across our channels on a wide range of shopping behaviors.Our brands use data not only to serve customers better by providing digital and in-store services,but also to generate revenue through advertising and insights t
208、o help us power our omnichannel ambitions.This year,we took important steps towards achieving our strategic initiative of generating 1 billion in complementary revenues by 2025.In Europe,we acquired a minority stake in Belgian adtech company Adhese,which will provide an important part of the tech st
209、ack and third-party integration to help scale our capabilities and increase services for advertisers and publishers.In the U.S.,Peapod Digital Labs announced plans to create an end-to-end,in-house retail media business,building on the existing AD Retail Media network and creating a simplified way to
210、 engage omnichannel customers.While exploring these revenue opportunities,we need to ensure we balance customers expectations about how we use their data with constantly evolving legislation on data privacy all while protecting the customer experience.Our brands are committed to processing and using
211、 customer data ethically and responsibly.They continuously work to understand customer viewpoints,stay up to date and comply with legislation,and implement data security initiatives,while constantly enhancing the shopping experience.OUR PROGRESS AND FUTURE PLANSDriving omnichannel growth is centered
212、 around four areas:Drive seamless omnichannel engagementIn a post-COVID-19 world,while customers have returned to stores,they continue to flex their use of both online and offline channels,often combining them on their path to purchase.And when they do shop across channels,they expect it to be a com
213、pletely easy,seamless omnichannel experience.We have a unique advantage in delivering this by combining our brands deep local expertise with the scale benefits and strong partnership opportunities of our international footprint.One example of how the brands create this seamless engagement is Alfa Be
214、tas collaboration with Wolt in Greece to offer fast,easy and reliable online shopping with delivery within 40 minutes from order placement.What started with five stores in Athens has expanded to 36 stores in seven cities.Through Wolts mobile app,5,000 product codes are available from Alfa Beta,cover
215、ing several categories and customer needs.With a similar mission to make life easier and more convenient for customers,Food Lion in the U.S.has expanded its Food Lion To Go offering.Customers can place an order through the website or app,access the same low prices and fresh food items they expect fr
216、om the brand and pick up their groceries on the same day without ever leaving their cars.The service is now available at 655 stores across Food Lions 10-state footprint and continues to expand.Food Lion also offers home delivery through around 85%of its network in partnership with Instacart.Initiati
217、ves like this ensure customers can spend less time shopping and more time on what matters the most to them.Grow e-commerce,personalization and loyaltyWe continue to invest in e-commerce growth and profitability to serve the millions of customers who use our brands websites and apps to do their shopp
218、ing.Across all our markets,our online penetration has more than doubled since 2019.While this growth is expected to slow,it is likely to continue on an upward trajectory through 2025.We expect at least half of Ahold Delhaizes growth between now and 2025 to come from online sales and that net consume
219、r online sales will double by 2025.Our brands keep investing to improve the digital customer experience.In the U.S.,the brands now operate almost 1,549 click-and-collect and pick-up points.Our and FreshDirect brands have both grown their customer and partner bases; now has over 51,000 sales partners
220、.In Indonesia,Super Indo launched the mobile shopping application“Super Ninja”as part of its 25th anniversary,serving 25 stores in Greater Jakarta.Delhaize Serbia also launched a personalized“My Maxi”loyalty app nationally.Our Dutch grocery brands paid subscription program,My Albert Heijn Premium,tu
221、rned one year old in October.The program is already helping over 675,000 customers save on their daily expenses:half save 50 or more per year and more than a quarter save over 100.Participating customers also receive a 10%discount on organic products,in line with Albert Heijns purpose to make eating
222、 better the easy choice for everyone.The program creates synergy between our brands in the Netherlands,offering discounts on Gall&Gall Premium membership and Select from .Top image:Food Lion To Go.Bottom image:FreshDirect home delivery.OUR GROWTH DRIVERSDRIVE OMNICHANNEL GROWTHAhold Delhaize Annual
223、Report 202233Enhance our brick-and-mortar footprintAcross the United States and Europe,our brands continue to introduce new,vibrant,modern store formats and experiences,powered by technology and featuring tangible sustainability improvements.Stop&Shop continues to make progress on its remodeling pro
224、gram,with over 40%of the store fleet completed since 2018.An important focus area for Stop&Shop is the New York City market,where we announced a multi-year$140 million investment early in 2022.With the first five store remodels completed,we are encouraged to see all stores trending ahead of plan,wit
225、h sales lifts driven by increased volume and new customer transactions.Customers are increasingly embracing self-service technology;for example,the use of self-scan and apps has grown enormously in recent years.People want shopping to be a convenient and simple part of life.To this end,Albert Heijn
226、and joined forces alongside Budbee to further improve convenience for customers.They will install parcel lockers across 700 large Albert Heijn stores over the next two years,enabling customers to pick up and return parcels from and other online shops without having to stand in line.The partnership o
227、ffers one more sustainable and flexible delivery option in the fast-growing market of online shopping,while simultaneously improving the customer experience in our brands stores.Drive price,value and assortmentEmpowering customer choice by providing great value and easy access to affordable and heal
228、thy food options is at the center of the customer value proposition in all of our great local brands.The current economic climate is putting intense pressure on customers household budgets.In the face of increasing price pressures,we believe it is everyones job,across the value chain,to keep prices
229、as low as possible for customers.To this end,our brands have introduced a number of initiatives to help customers capture value while ensuring access to healthy,quality foods.For instance,Stop&Shop in the U.S.introduced a new Deal Lock savings program that allows customers to lock in a specific sale
230、 price for multiple weeks on both national and private brands.Delhaize Belgium launched its“Little Lions”program,which offered price reductions on 500 of its most-purchased own-brand products.The brand used eye-catching signage to make these products easy to find in the stores.Double capacityB plans
231、 for growth by expanding its fulfillment centerB doubled the total floor area of its Waalwijk fulfillment center,toprovide more capacity to innovate and grow in a sustainable way in the future,both for customers and for sales partners.The facility now has a total floor area of 240,000 square meters.
232、With 13,000 solar panels on the roof,windmills next to the building,automated packing machines,kilometers of conveyor belts and enormousshuttle system,it is one of the most sustainable logistics buildings in the Netherlands and Belgium.See our website for more information.We want to achieve climate-
233、neutral by 2025.Thisfulfillmentcenter,byrunning 100%onsolarand windenergy,brings us closertoachievingthatambition.Vincent Weijers COO OUR GROWTH DRIVERSDRIVE OMNICHANNEL GROWTHAhold Delhaize Annual Report 202234Elevate healthy and sustainable54.4%33%of total own-brand food sales from healthy product
234、s in 2022food waste reduction in 2022 compared to our 2016 baseline132%27%reduction in absolute scope 1 and 2 CO2-equivalent emissions in 2022 compared to our 2018 baseline2of own-brand primary plastic product packaging is recyclable,reusable and/or compostable in 20221 The reduction is measured aga
235、inst the restated 2016 baseline:5.09 t/million.See ESG statements for more information.2 The reduction is measured against the restated 2018 baseline:4,164 thousand tonnes CO2-equivalent emissions.See ESG statements for more information.OUR AMBITIONOur“Grounded in Goodness”strategy is centered aroun
236、d our belief that what is healthy and sustainable should be accessible and available to all.With a dual focus on healthier people and a healthier planet,our strategy is based on the idea that these two things are intrinsically linked.We believe that if we get it right for ourselves,we usually also g
237、et it right for the planet.And acting responsibly today is imperative to securing a better tomorrow for generations to come.This approach ensures the decisions we make are grounded in doing the right thing for people with a focus on customers,products,communities and associates and planet with a foc
238、us on impacts from our own operations and working with farmers and suppliers to reduce our impacts across the entire supply chain.We collaborate closely with our partners and brands to empower customers to join this journey and make healthy and sustainable choices into easy choices for everyone.Our
239、brands aim to ensure that whats healthy and sustainable is affordable,accessible and inclusive for all through their marketing,reward programs and store design.They innovate to make products healthier,more interesting and more varied.The brands aim to source locally,help farmers get a fair deal and
240、work to improve the food supply chain.Along the way,we are transparent in highlighting our progress and making better choices clear.STRATEGIC CHOICES ANDCHALLENGESAligning to improve the food systemOur brands operate as part of a complex value chain comprised of thousands of producers that help them
241、 provide products and services to customers.We also have many stakeholders that are impacted by our global food system.To transition to a healthier and more sustainable food system will require the whole value chain to work together and to be successful we need consensus on certain measures across o
242、ur industry.A key part of encouraging our brands customers to make healthier choices is to align on one nutritional navigation system.For example,at present,not all companies or even all countries in Europe are aligned on using We make healthy and sustainable choices easy for everyonenutritional gui
243、dance system Nutri-Score,which makes it challenging to implement an overall system and increase customer engagement.We believe we have an important role to play in collaborating with our partners across the value chain and helping move our industry towards healthier and more sustainable diets.This i
244、s a complicated undertaking,as alignment on key success factors is crucial and our supply chains are complex.The food system sits at the intersection of health and climate and our actions should drive co-benefits,as we diversify our product portfolios toward healthier,low-carbon diets that are affor
245、dable and accessible for all.OUR GROWTH DRIVERSAhold Delhaize Annual Report 202235OUR PROGRESS AND FUTURE PLANSOur elevate healthy and sustainable growth driver centers around healthier people and a healthier planet.Healthier peopleOur commitment to healthier people begins with empowering customers
246、and associates and working to develop healthier and more sustainable product assortments.But it also has to do with supporting resilient communities,everywhere the brands operate.Customers and associatesIn 2022,our brands continued to stay focused on making healthy and sustainable choices easier for
247、 customers and associates by providing relevant information and rewarding people for making better choices both in stores and online.Our brands inform customers about healthier options in the stores through shelf tags,product labels and dedicated health sections.Several brands have in-store nutritio
248、nists who help customers gain insight into their diets.Through their online platforms,several of our brands enable customers to apply filters when shopping so they only see healthier,organic or vegetarian products,enabling them to make better choices.To identify“healthier”products,our brands use wel
249、l-established nutritional navigation systems,such as Guiding Stars in the U.S.and Nutri-Score in Europe.These systems are continuously updated according to the latest knowledge.For example,the U.S.brands continue to improve Guiding Stars nutritional guidance,and added advice on beverages to the prog
250、ram in 2022.ProductsOur brands are making healthy and sustainable choices more accessible through their product assortments.They are reformulating products with less sugar,salt and fats,so the average shopping basket is healthier and more sustainable.Our aim is to nudge people towards a planetary di
251、et that includes many of the same elements,but with more balance more vegetables,more sustainably produced meat and products that are produced in a healthy and sustainable way.For example,our Albert Heijn brand in the Netherlands is partnering with the World Wide Fund for Nature Netherlands(WWF-NL)t
252、o support the goal to halve the environmental footprint of the Dutch customers shopping basket by 2030.The partnership will draw on the experience WWF-UK has gained working with supermarkets in the UK,to provide a“scientific blueprint”in the Dutch context with actions necessary to achieve that goal.
253、This Dutch version will be open source and WWF-NL and Albert Heijn will be asking other Dutch retailers to join.In the U.S.,The GIANT Company,Giant Food and Stop&Shop continued to offer products on their websites reviewed by HowGood,helping customers easily identify food items that meet rigorous env
254、ironmental and social benchmarks through simple one-,two-or three-leaf ratings.HowGood ratings can also be found on shelf tags at all Giant Food stores.CommunitiesOur brands stores are more than just stores.They are social centers and places where communities come together.Our brands already support
255、 many causes that are important to local communities,for example,fighting hunger in communities through financial donations and by diverting surplus food to food banks and charities.In 2022,Ahold Delhaize and its brands donated 218 million in financial and in-kind giving to good causes.Healthier pla
256、netWe aim to achieve our goal of a healthier planet by focusing both on our operations and the overall food supply chain.We are committed to reaching net-zero carbon emissions across our own operations by 2040 and becoming a net-zero business across our entire supply chain,products and services by 2
257、050.See ESG Environmental for more on our net-zero ambition.Own operationsWe see the greatest planetary impacts in our own operations through food and plastic waste and through carbon emissions from energy consumption,refrigerant leakage and transport emissions in our brands operations.We continued
258、to make progress on reducing carbon emissions in our own operations in 2022.Energy consumption Our brands work to reduce energy use in their operations by building and remodeling stores in the most energy-efficient way.For example,they install LED lighting and retrofit refrigeration systems with doo
259、rs and seals that save energy.We can abate the electricity we still need to consume simply and effectively through power purchase agreements(PPAs).RefrigerantsWhen our brands remodel stores,they also use refrigeration systems with a lower global warming potential or,where possible,use natural refrig
260、erants.To minimize costs,our brands phase replacement with planned store remodelings,using an approach that is tailored to the refrigerant system installed and coolant used.TransportWhen possible,brands make use of low-energy transportation methods,such as electric vehicles or vehicles that use low-
261、carbon-emissions fuels.They also use technology to improve route optimization and reduce last-mile costs.For example,the U.S.brands are working on a new last-mile enterprise routing solution and automated route planning.And in Europe,our brands are working to improve the fill mechanism of vans to al
262、low for more orders per trip.Food wasteFood waste continues to be an important priority for us;it is not only an environmental problem,but has a financial impact on the business.In 2022,we continued to work toward our ambition to reduce food waste by 50%by 2030 compared to our 2016 baseline.In the f
263、ight against food waste,we always aim first to prevent it before it happens.Our brands have many creative programs in place to do this,some engaging customers in the journey.For example,Delhaize in Belgium has created a“no waste”corner,that groups products discounted because they are nearing their e
264、xpiration date but are still fresh and tasty if eaten quickly.The initiative helps customers save money while reducing food waste.For more information see Local matters:Local solutions.Alfa Beta in Greece is collaborating with WWF to create more awareness among customers about food waste.For more in
265、formation,see Local matters:Halving waste.Both The GIANT Company and Stop&Shop offer the Flashfood app,which gives customers access to fresh products nearing their best-by date at discounts of up to 50%off.This year,Stop&Shop became the first retailer in New York Citys five boroughs to offer the app
266、.Any food that cant be sold by our brands is diverted to help feed people in their communities.Food Lion Feeds provided more than 51 million meals through its pioneering food rescue program in 2022.Each of Food Lions stores distributed unsold,edible food that might otherwise go to waste to a local f
267、ood bank for neighbors in need.In 2022,Albert became the largest food donor in the Czech Republic,and committed to increasing food support even further,by 20%.It donated seven delivery vans with special cooling systems OUR GROWTH DRIVERSELEVATE HEALTHY AND SUSTAINABLEAhold Delhaize Annual Report 202
268、236to help keep food fresher for longer.For more information,see Local matters:Nourishing communities.Plastic packagingOur aim is to reduce the overall amount of virgin primary plastic packaging used for own-brand products by 5%by 2025 compared to our 2021 baseline.When plastic is used,we want to en
269、sure it is 100%recyclable,reusable or compostable.We also aim to achieve a 25%post-consumer recycled content used in primary own-brand plastic product packaging.Our brands have many innovative initiatives in place to achieve these goals.For example,Giant Food became the first retailer on the U.S.Eas
270、t Coast to partner with Loop,providing a selection of over 20 products from leading consumer brands packaged in reusable containers.Customers return the packages to be sanitized and reused.For more information on how we reduce the environmental impact from our own operations,see Environmental,social
271、 and governance.Value chainThe vast majority of our greenhouse gas(GHG)emissions are scope 3,or indirect emissions that take place across our entire value chain for example,emissions generated through the production and manufacture of the products we sell and when customers use those products.Our va
272、lue chain consists of thousands of suppliers,producers and farmers who supply hundreds of thousands of products that are sold to millions of customers across the United States and Europe each day.Our brands partner with suppliers to reduce waste,increase the number of low-carbon products in their as
273、sortments,reduce emissions from outsourced transportation,and engage with suppliers to reduce their emissions.In November 2021,we committed to becoming net-zero businesses across our entire supply chain,products and services by 2050.In 2022,we updated our interim CO2-emissions-reduction target for t
274、he entire value chain(scope 3)of at least 37%by 2030 from our 2020 baseline.For our own operations(scope 1 and 2),we remain committed to reaching net zero by 2040,with an interim target of a 50%reduction by 2030 from our 2018 baseline.With this updated scope 3 interim target,we aim to decarbonize ou
275、r entire value chain and ensure that our climate targets are in line with the UNs goal of keeping global warming below 1.5C.The updated interim target is also aligned with the Science Based Targets initiatives(SBTis)Net-Zero Standard.In accordance with this initiative,we are using our latest availab
276、le emission profile from 2020 as the baseline for our new target instead of our previous 2018 baseline.In November 2021,we joined the Business Ambition for 1.5C,a global coalition of UN agencies and business and industry leaders,in partnership with the SBTi and the UN-led“Race to Zero”campaign.Our u
277、pdated target is part of the annual climate reporting cycle outlined in the Business Ambitions agreements.See also In focus:Carbon emissions in our supply chain.To reduce GHG emissions across our supply chain,we have identified the following key priorities:For more information,see In focus:Carbon em
278、issions in our value chain.Accelerating supplier and farmer implementation of science-based targetsWe are supporting our brands suppliers in setting their own emissions reduction targets in line with the latest science.These commitments will accelerate improvements in livestock farming,raw material
279、sourcing,deforestation reduction,processing,food waste reduction,packaging and transport.For example,through enteric fermentation(methane reduction through genetic selection or feed additives)and manure management(creating biogas from liquid manure and adding sulfuric acid to shift the pH value of m
280、anure),GHG emissions from livestock can be reduced,using new technologies and practices.Investing in developing low-carbon productsWe are driving the improvement of existing assortments and the development of new assortments with less embedded emissions.Halving wasteAlfa Beta is committed to reducin
281、g food waste by 50%by 2025.This requires educating key stakeholders along the way In collaboration with WWF in Greece,Alfa Beta has launched a customer awareness campaign that aims to educate customers and ultimately reduce food waste in households by focusing on its significant climate impact.See o
282、ur websitefor more information.Our brands continue to introduce more plant-based protein products in their assortments and support customers in making more sustainable choices.Proactively engaging with customersOur brands are helping customers understand the impact of their buying decisions and make
283、 choices that fit their needs,their tastes and their values.This includes stimulating and rewarding sustainable choices through loyalty programs and discounts,increasing product transparency through navigation systems and product labeling,improving assortments and products with more vegan and vegeta
284、rian products,and increasing knowledge about a healthy lifestyle by giving customers access to free dieticians and knowledge platforms.OUR GROWTH DRIVERSELEVATE HEALTHY AND SUSTAINABLEAhold Delhaize Annual Report 202237 Cultivate best talent79%74%(=)Associate engagement score(2022)(+4 pp)Associate d
285、evelopment score(2022)180%(+1 pp)Inclusive workplace 1 All brands excluding U.S.OUR AMBITIONOur brands are driven by committed people the 414 thousand-strong team making a daily difference to customers and communities.We are united in our shared values of care,courage,integrity,teamwork and humor an
286、d are passionate about creating healthy,engaged and inclusive workplaces reflective of the communities our brands serve.We provide a caring place to work where our people feel welcome.Here,everyone is heard,valued and finds purpose in their work.Because we know that when associates grow,our business
287、 succeeds.Our motto“Dare to care”sums up what makes us special:always having the courage to care for associates,customers and communities as we fulfill our purpose to help people eat well,save time and live better.STRATEGIC CHOICES ANDCHALLENGESDaring to careIn the past year,people everywhere were i
288、mpacted by global events,such as the war in Ukraine,rising political and social unrest and macro-economic factors,all of which have affected mental health and well-being.This is why we again prioritized creating psychological safety for associates and teams.Experts describe the challenging situation
289、 we live in as a mental health pandemic.In times like these,it is important that we live our value“care”to the fullest.Ahold Delhaize and our family of brands are working to prioritize peoples physical,social and mental health.We want to ensure that all associates are free to be themselves and expre
290、ss their feelings.Psychological safety “a belief that one will not be punished or humiliated for speaking up with ideas,questions,concerns or mistakes”1 is a prerequisite for bringing out the best in people.It is the foundation of inclusion the glue that binds us together and builds strong teams.The
291、 challenge for Ahold Delhaize is how to maintain a healthy environment for our diverse and multi-generational workforce that brings out the best in us all,while at the same time experiencing and responding to challenging events in the world around us.Our brands continually strive to raise awareness
292、and offer programs,benefits and well-being initiatives that support a healthy balance.One way our brands demonstrated care in their communities in 2022 was in their individual swift response to the war in Ukraine.See War in Ukraine:Impact and our response for details.To support associates,we launche
293、d Mental Health Awareness Week,which included webinars,self-evaluation tools,expanded benefits,meditation and expert sessions.At the Global Support Office,these initiatives were supported by dedicated associate champions advocating and raising awareness.Mega Image continued to support its associates
294、 in finding emotional balance during challenging times by hosting webinars and seminars on topics such as how to speak about the war in Ukraine to children,the pandemic and societal barriers affecting womens rights and gender equality.Mental health is an important topic for our brands in the U.S.,as
295、 well.Hannaford,for example,has become a best practice for us on how to address mental health and well-being in the store environment.Leaders in the brands stores are equipped with training,tools and materials to learn to lead differently and support associates needs in the“new normal”we face today.
296、The brand also offers empathy support sessions to enable store managers to grow and develop in their support towards associates.1 Amy C.EdmondsonFirst aidDelhaize associates rescueman from cardiacarrest The health and safety of customers and associates is an absolute priority.The quick response of D
297、elhaize associates in Belgium saved lives during two serious incidents in the stores in 2022 just one example of many at our brands that prove the importance of our first aid training.“Thanks to basic training,annual refresher courses and practical workshops to practice rescue techniques,we knew how
298、 to react.”Mohammed Choual and Daniel Rose(associates)See our website for more information.OUR GROWTH DRIVERSAhold Delhaize Annual Report 202238Attracting and retaining talentin complex timesAt Ahold Delhaize,we pride ourselves on attracting,developing and retaining the best talent and it is critica
299、l to our success.The labor market in 2022 was impacted by increasing political and social unrest and macro-economic factors such as unprecedented inflation and critical skill shortages.Labor challenges we experienced in 2021 intensified in 2022,with increasing external job opportunities available to
300、 associates and continuing talent poaching.Overall associate turnover was 63%,primarily due to the largepart-time workforce and seasonality inherent to this industry.Our strong company culture and shared values continued to guide us and help us remain resilient in the face of these challenges.We wer
301、e pleased to see that associate engagement remained high at 79%,as measured by our associate engagement survey,and feedback from colleagues on career opportunities improved by 5%this year.OUR PROGRESS AND FUTURE PLANSOur cultivate best talent growth driver centers around four priorities.CREATE THE F
302、UTURE OF WORK All our brands are preparing for the challenges and capitalizing on the opportunities that will come with the future of work.The changing nature of work,learnings from the pandemic and shifting associate expectations have highlighted the need for flexibility especially in the stores an
303、d distribution centers(DCs)robust workforce planning and reskilling.Our brands have worked in innovative ways to create better,healthier and more sustainable solutions for the future.Preparing for the future of work enables us to give associates opportunities to grow,while maintaining a competitive
304、advantage in the brands markets.Our Retail Business Services(RBS)team in the U.S.ranked No.25 on Fast Companys 2022 100 Best Workplaces for Innovators list,which honors organizations committed to encouraging innovation at all levels.One initiative earning RBS the award was a frictionless checkout so
305、lution developed in its IT innovation lab.Alfa Beta,Delhaize Serbia and Mega Image worked closely with our European IT team during the year to build a system that replenishes stock in stores.It uses algorithms that forecast store needs based on sales,sending orders directly to the DCs.So far,the tea
306、m has successfully rolled out the system to 1,700 stores,covering about 70%of the assortment.Support office associates were at the forefront of change and experimentation during the pandemic,as hybrid ways of working drove technological remote working solution.This continues to impact our business,a
307、nd we are responding to the evolution of work and shifting needs of associates in various ways.For example,our Working from Abroad pilot in our Global Support Office(GSO)in the Netherlands enables people to get inspired and energized by working in different settings or to combine work with a family
308、visit or vacation.Another example of how our brands are increasing flexibility and improving associates well-being and work-life balance is at Delhaize Serbia.The brand is considering introducing a four-day work week in its offices on the basis of input from a survey of its top 100 leaders.The propo
309、sal is based on a culture of trust and empowerment and would offer associates an 80%fixed and 20%flexible division of working hours.To better anticipate change in an ever-shifting labor environment,we are working to create a stronger associate experience and leveraging data capabilities to improve p
310、redictive analytics and advance hiring and development.All of this is only possible if we have robust systems to support data,so implementing SAP SuccessFactors across our great local brands is important,and enables us to work together in a secure way.In addition to existing associates in the U.S.an
311、d the Netherlands,we recently onboarded Albert,Maxi and Albert Heijn Belgium,and now have 285,000 associates,or more than 70%,on the SuccessFactors platform.Technology and data are key enablers in creating a seamless associate experience.The integration of digital and improved data capabilities acro
312、ss the organization are making a positive impact.PIVOT OUR CULTUREOur culture is what makes us unique.We pride ourselves on building an environment of continuous growth that supports personal and business development and brings us together.Psychological safety and inclusiveleadershipFostering psycho
313、logical safety is essential to creating a workplace where our values are clearly reflected and communicated.One step we took to create a safer environment in 2022 was offering experiential workshops to associates at the GSO and the brands.In these sessions,leaders and associates were encouraged to s
314、hare what makes them feel psychologically safe and how to bring this to life in the workplace.We also included an interactive exercise on psychological safety in our Gearing up for Growth program,a development offering for high-potential Directors.It prepares associates to become better,more inclusi
315、ve leaders.At our annual leadership conference,the topic was prominently addressed and experienced through a workshop on how we can support a culture of growth and daring to care.It pushed leaders out of their comfort zones to explore what it is like to be vulnerable and how we can connect through o
316、ur similarities but also our differences.Top image:Alfa Beta associates in a DC.Bottom image:Associates at the Retail Business Services office.OUR GROWTH DRIVERSCULTIVATE BEST TALENTAhold Delhaize Annual Report 202239In 2022,we offered our Inclusive Leadership program for the fourth consecutive year
317、 in partnership with MindGym.It enables current and future leaders to learn,practice and apply the skills needed to lead more inclusively by inspiring,motivating and evoking trust.See In focus:Diversity,equity and inclusion for more details.See In focus:Diversity,equity and inclusion for more inform
318、ation.Connecting with communitiesOur caring culture extends to the markets our brands serve and the communities we live in.In 2022,our family of brands once again found many opportunities to give back.Our colleagues in the Netherlands created a new Business Resource Group(BRG)called“Make it Count!”t
319、hat seeks to inspire and activate Ahold Delhaize associates in the Netherlands to use skills,ideas,and talents to give back to their communities and volunteer.For example,members of the BRG visited a homeless shelter in Amsterdam where they cooked and served food and drinks to those who need it most
320、.In the U.S.,our brands showed they care through many different initiatives.For example,The GIANT Company kicked off its annual holiday giving with Giving Tuesday,donating$57,500 to 11 community organizations combating food insecurity and supporting families in need across its footprint.This initiat
321、ive helped The GIANT Company fulfill its purpose of connecting families for a better future.The Food Lion Feeds charitable foundation continues to make a meaningful impact.Since its inception in 2001,it has given almost$17 million to good causes;in 2022 alone,donations amounted to more than$1.1 mill
322、ion.Food Lions strong local network ensures that hunger relief efforts reach those most in need.In Europe,our brands show us that caring for people has no limits.As part of its 12 Acts of Kindness internal volunteering program,Mega Image launched a“Caring for people has no borders”volunteering campa
323、ign in partnership with the Romanian Red Cross,involving over 30 volunteers.The brand also supported the“Ana and the Children”foundation,raising 2000 in donations,and organizing 50 volunteers to build a new center where 100 children will be hosted and provided with meals,shoes,personal care products
324、 and school supplies.As a result of a 200,000 donation from Delhaize Serbia,in early 2022,UNICEF was able to purchase a vehicle designed to transport prematurely born and sick babies from maternity wards in the region to the Centre for Neonatology.TRANSFORM OUR CAPABILITIES Transforming our capabili
325、ties is a journey that every brand is taking to ensure the right skills are in place now and in the future.Tailoring learning to individual needsCustomer and associate expectations are shifting,and the skills of yesterday are not always fit for the future.Refreshing capabilities is an important prio
326、rity,and the skills with the steepest change curves are within the digital and technology environments.Ahold Delhaize continues to leverage individual development plans(IDPs)alongside technology tools,such as SuccessFactors,Degreed and DataCamp,to assess capability gaps and offer training to upskill
327、 and reskill our workforce.In 2022,associates completed more than 5.4 million learning modules.Developing people is central to our HR purpose:“Cultivating todays talent,unleashing tomorrows leaders.”Support associate developmentEvery associate is in the drivers seat of their own development,and all
328、the brands provide programs that support this growth.Associates are encouraged to create IDPs,with more than 72%having a plan in place for VP+level.For example,these development plans provide a strong basis for manager and associate dialogues that help to build capabilities that are aligned to assoc
329、iate aspirations and offer growth experiences.In 2022,we welcomed 14 new international trainees within our HR and Finance functions.During their three-year program,they will have the opportunity to work at several brands and support offices across Ahold Delhaize and participate in a development prog
330、ram that will help them kick-start success in their career fields.CULTIVATE TALENT The food retail business is changing faster than ever before in these challenging times.Associates make the difference and help ensure we are well positioned to drive future growth.We want people to have the opportuni
331、ties and support they need to grow and reach their full potential.Mentoring fosters an inclusive and collaborative environment of learning and is one of the many ways we facilitate knowledge sharing.A good example is our European mentorship program,which kicked off in 2022 and is available to associ
332、ates in director roles and above and their direct successors.Through the program,a mentor from one brand is paired with a mentee from another brand for a six-to 12-month mentorship.Be courageous,live wholeheartedly and keep growingAs we transform our capabilities,everyones contributions matter.We wa
333、nt to make sure that people across Ahold Delhaize are encouraged to be themselves and apply their unique talents.For example,Delhaize Serbia collaborates with the Creative and Educational Center(CEC),an organization focused on the inclusion of persons living with a mental or intellectual disability.One of the most successful initiatives between CEC and Delhaize Serbia is a work-ready program that