How $36 billion grocer Ahold is experimenting with smaller stores

By Alicia Kelso, Contributing Writer

For a retailer with more than 3,000 locations, $36 billion in 2014 revenue, and a narrowing profit margin, going small might seem a strange strategy. But a new small-format grocery store from Dutch grocery giant Ahold that is integrated into a neighborhood streetscape — rather than sitting behind a massive parking lot — may be the key to attracting a young, discerning urban shopper who ordinarily frequents farmer’s markets or Whole Foods.

Ahold USA, which has head offices in Carlisle, Pennsylvania, and Quincy, Massachusetts, created a new unit called Fresh Formats LLC in 2014 with an eye toward spawning new store formats. The first brand to emerge from Fresh Formats is bfresh, which opened in early September in Allston, Massachusetts, a part of Boston that is populated by students, recent graduates, and a significant Asian and Russian population. Bfresh offers a large selection of natural, organic, vegan, gluten-free and international foods, as well as fresh-baked breads and a wide selection of prepared, ready-to-eat meals.

... continued ...

Gated Article Promo

Read the rest of the article ... and give IL a test drive!

Complete the form below for a 14-day trial of Innovation Leader, including access to case studies, research excerpts, live calls, and other resources. Got questions? Get in touch »
SEE INNOVATION LEADER IN ACTION!
Watch this quick video to see the main benefits of Innovation Leader membership.
 
Innovation Leader
What Is Innovation Leader?
Are you responsible for creating new growth in a large organization? We've got you covered. IL members get full access to our research, articles, case studies, live events, webcasts & conference calls, downloadable resources and more. Become a member »

Case Studies, Articles
Members-only online access to articles, case studies, best practices, video tutorials, more.
RESEARCH REPORTS
Exclusive reports on topics including metrics, benchmarking, labs, compensation, and more.
IL Events LIVE EVENTS
Member discounts to our one-of-a-kind, loved-by-participants live learning events.
Il Resources RESOURCE CENTER
Dozens of downloadable checklists, innovation frameworks, spreadsheets, and dashboards.
Learn More & Become a Member