By Michael Susin

Royal Ahold Delhaize expects to significantly increase its loyalty sales penetration and the share of its own-labelled products sold, as part of its new strategic plans for the medium term.

The Dutch grocer on Thursday said that it seeks to drive up omnichannel loyalty sales penetration to more than 80% by 2028, aiming to achieve 30 million monthly active users.

It also intends to increase its own-labeled product share to around 45% of total store sales and enhance price perception through promotions.

The company hasn't disclosed current user numbers for its loyalty program or the share of own-labels sales.

Under the new strategic plan, the group laid out its ambition to outperform the grocery sector and achieve 4% net sales compound annual growth rate. It also seeks to keep underlying operating margin averaging 4%, the same target for the current year.

The group expects to achieve 5 billion euros ($5.41 billion) in cumulative savings through actions including the use of artificial intelligence and automation in logistics and distributions, and business simplification.

These measures are expected to generate a EUR9 billion free cash flow, and also to support the plans for EUR1 billion annual share buybacks and boost dividend payouts, it said.

Write to Michael Susin at

(END) Dow Jones Newswires

05-23-24 0645ET