Dutch supermarket operator Royal Ahold NV, owner of U.S. grocery chains Stop & Shop and Giant, says its profits dipped in the second quarter from a year ago amid fierce price competition, The Associated Press reports.
In the U.S., Ahold’s largest arm, sales rose 5.3 percent from the same period a year ago to $5.8 billion (euro4.03 billion), while operating profits fell 23 percent to $209 million.
Ahold Thursday attributed about two-thirds of the fall to restructuring charges, and the rest to eroding margins.
Companywide net profit was down 1.5 percent, to euro199 million ($287 million) from euro202 million — due to a weaker dollar and the reversal of a one-time loss a year ago at Scandinavian chain ICA. Ahold’s sales fell 3.7 percent to euro6.87 billion due to the weaker dollar.
