Delhaize Strikes Impact Ahold Delhaize Turnover: A Closer Look

Ahold Delhaize, the Dutch-American multinational food retailer, reported a 3.9% decline in turnover in the first quarter of 2023. The company attributed the decline to strikes at its Delhaize Belgium subsidiary.

The strikes began in January 2023 and lasted for several weeks. They were the result of a dispute between Delhaize Belgium and its employees over wages and working conditions. The strikes caused significant disruption to Delhaize Belgium’s operations, and the company was forced to close some stores.

As a result of the strikes, Ahold Delhaize’s turnover in the first quarter of 2023 was €23.5 billion, down from €24.4 billion in the same period of 2022. The company’s operating profit also declined by 10.3% to €696 million.

Ahold Delhaize CEO Frans Muller said that the strikes had a “significant impact” on the company’s performance in the first quarter. He said that the company is “working hard” to resolve the dispute with Delhaize Belgium’s employees and to reopen the stores that were closed during the strikes.

Muller also said that Ahold Delhaize is facing other challenges, such as rising inflation and supply chain disruptions. However, he said that the company is confident that it can overcome these challenges and deliver long-term growth.

Here are some additional details about the strikes at Delhaize Belgium:

The strikes were the first major industrial action in Belgium in several years.
The strikers were demanding a 7% pay rise and improved working conditions.
The strikes caused significant disruption to Delhaize Belgium’s operations, with some stores being closed for several days.
The strikes ended in February 2023, after Delhaize Belgium agreed to a 6.5% pay rise and other concessions.
The strikes at Delhaize Belgium are a reminder of the challenges facing the retail industry. Retailers are facing rising costs, supply chain disruptions, and increasing competition from online retailers. These challenges are putting pressure on margins and profits.

Ahold Delhaize is not the only retailer to be affected by strikes. In recent months, there have been strikes at retailers in the United States, the United Kingdom, and France. These strikes are a sign of the growing discontent among retail workers.

Retailers need to find ways to address the challenges they are facing. They need to find ways to reduce costs, improve efficiency, and innovate. If they don’t, they will face increasing pressure from competitors and from their own employees.