Stop & Shop owner doubles down on e-commerce amid pandemic
July retail sales slightly lower than expected
FOX Business’ Cheryl Casone reviews the July retail sales report.
The owner of Food Lion, Giant Food and Stop & Shop is allocating more funds to its e-commerce operations as the coronavirus pandemic prompts more people to buy groceries online.
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Netherlands-based Ahold Delhaize NV owns the Peapod online grocery service in the U.S. and also offers click-and-collect services, which allow consumers to pick up their online purchases from a store.
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Online sales accounted for only about 3.6% of Ahold's U.S. revenue of EUR23.2 billion ($27.5 billion) in the first half of the year. Still, they are growing rapidly, up from a 2.3% share of U.S. revenue in the first six months of 2019.
"Covid was kind of a wake-up call for us," said Natalie Knight, who has been the company's chief financial officer since April. Ahold decided to accelerate the build out of its online channels and to interlink e-commerce with the brick-and-mortar business because of the pandemic, Ms. Knight said.