ZAANDAM, THE NETHERLANDS - After reporting strong fourth quarter results for 2018, Ahold Delhaize is positioning itself to take on a few leading players like duo Kroger and Ocado with all-new micro-fulfillment centers and an expanded robotics program.

Frans Muller, President and CEO, and Jeff Carr, CFO, revealed in a webcast with analysts that the retailer would be revamping its Stop & Shop banner and building more micro-fulfillment centers in 2019 and 2020.

“With our Leading Together strategy in place, our focus turns to further strengthening our great local brands by accelerating investments in omnichannel growth, technology, and a healthy and sustainable offering to customers…We are excited about the program to refresh the look and feel of our Stop & Shop brand and the rapid expansion of our Click and Collect options for our customers,” said Muller.

Carr took shots at Ocado by adding: “The beauty of these centers is that they can be added much more quickly than an Ocado type of large-scale capital investment.”

The retailer plans to start building the new facilities in 2019 and expand even more in 2020. This will up Stop & Shop's fullfillment center tally from its one in Hartford, Connecticut.

In addition, Ahold Delhaize is grabbing the industry's robotics program by the gears (...ew?) and implementing what it has deemed the largest deployment of robotics in grocery stores in the world. While Ahold did not specify what this entails, it’s safe to assume that the retailer will only continue to introduce innovations like its produce delivery ‘bots.

Ahold Delhaize also reported highlights from its fourth quarter, which included the following:

• Net sales of €16.5 billion ($18.7 billion), up 3.0% at constant exchange rates
• Net consumer online sales up 25.0% at constant exchange rates
• Operating income of €627 million ($712 million), up 9.1% at constant exchange rates
• Performance in the U.S. continued good momentum, underlying operating margin up 0.2% points

"For the full year we delivered a strong free cash flow of €2.3 billion ($2.6 billion), supported by further improvements in net working capital. We expect free cash flow for 2019 of around €2.0 billion ($2.2 billion), with capital expenditure of €2.0 billion,” Muller added in regard to Ahold Delhaize’s full year financial results. “In 2018, we essentially completed the merger integration process and delivered on the synergies we promised. At the same time, we continued our strong business performance, while investing in meeting the needs of our customers in a rapidly changing industry. Today, Ahold Delhaize is fit for the future, with a very robust financial profile and the right structure to further grow our brands, both in-store and online.”

To read Ahold Delhaize’s quarterly report and listen to its analyst webcast, click here.

Will Stop & Shop's new micro-fulfillment centers give Ahold Delhaize an AI edge over leading competitors like Kroger, Walmart, and Albertsons? AndNowUKnow is on the scene.

Ahold Delhaize Stop & Shop