Ahold is Letting Go

Royal Ahold N.V. (Zaandam, Netherlands) has announced its intention to divest its Bi-Lo (Mauldin, S.C.) and Bruno's (Birmingham, Ala.) subsidiaries, two of the leading supermarket chains in the Southeastern United States. No potential buyers have been identified.

The company says the move, to be completed some time this year, would be part of its strategy to optimize its portfolio and to strengthen its financial position by reducing debt. The decision would focus the supermarket operator's efforts on its remaining U.S. food retail operations, including Stop & Shop, Giant-Landover, Giant-Carlisle, Tops and Peapod.

“We believe that Bi-Lo and Bruno's are both powerful brands and will have a bright future under new ownership,” said Royal Ahold president and ceo Anders Moberg. “We hope to identify buyers whose strategic priorities include further strengthening these businesses to succeed in a competitive but fast-growing marketplace.”

“We are confident that this decision will position Bi-Lo and Bruno's for long-term growth in their respective markets,” added Bill Grize, president and ceo of Ahold USA (Chantilly, Va.), “with the intent of creating more value for associates and customers.”

“With decades-long heritage of outstanding customer service, deep roots in the communities we serve, experienced management teams and strategically attractive store locations in one of the fastest-growing regions of the United States, Bi-Lo and Bruno's are strong businesses well-positioned to thrive in the years ahead,” said Dean Cohagan, president and ceo of both chains. “We are confident that the Bi-Lo and Bruno's tradition of excellence will be continued under new ownership.”

Bi-Lo was acquired by Ahold in 1977. It operates 292 stores in South Carolina, North Carolina, Georgia and Tennessee, with unaudited net sales in 2003 of $3.197 million. Bruno's was acquired by Ahold in 2001. It operates 178 stores in Alabama, Florida, Georgia and Mississippi, with unaudited net sales in 2003 of $1.775.