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Ahold sees small supermarkets struggle with high technology costs

Ahold sees small supermarkets struggle with high technology costs

Ahold Delhaize CEO Frans Muller reports that independent supermarkets are struggling with the high costs of digital transformation and infrastructure modernization. Consequently, many small operators are seeking to sell their businesses or partner with larger chains, creating expansion opportunities for companies like Ahold.

Ahold Delhaize CEO Frans Muller recently stated that smaller and mid-sized supermarket operators are struggling to keep pace with rising technological investment requirements. To maintain competitiveness, retailers must increasingly fund loyalty programs, personalized marketing, artificial intelligence, and digital infrastructure. Muller explained that while large chains can spread these costs across vast networks, independent owners often find the financial burden unsustainable, leading to a surge in acquisition interest within Ahold's own network.

This trend is particularly evident in the United States, where independent and family-owned businesses still represent about 20 percent of the market. In contrast, the landscape in Western Europe is already dominated by major players. As independent retailers face mounting pressure, large corporations like Ahold Delhaize are well-positioned to expand their market share through strategic acquisitions. This strategy was recently highlighted by Ahold's agreement to purchase Tesco operations in the Czech Republic and Slovakia for over 1.2 billion euros, effectively securing a leading market position in the region.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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