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Koninklijke Ahold N.V. Message Board

  • supermarketinvestor supermarketinvestor Jun 21, 2010 10:30 AM Flag

    Huge Capital investment needed

    Ahold US management system is an old relic and will need to be upgraded soon. They will need to spend 600 to 700 million go get the basics up to date. They are still operating with 1980 technology. They admin will be in a cluster fu** trying to roll this out and it will not be pretty once they start. It will give them a huge write off but will impact earnings for years to come.

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    • A result of the "tail wagging the dog". Don't sell what the customers want.....sell what the vendors push through the backdoor with economically questionable negotiations with buyers. It's sorta like the special interest groups running the country. The majority does not get what it wants. Instead it is inundated with special deals negotiated in back offices who have "the customer's best interest at heart". We know what is best for you.

    • One of the reasons that Giant's backroom inventory is so large, is because of forced distributions. The distributions are way too large for the stores.

    • I dont know exactly what business model giant is running right now but its not very streamlined....giant has a high employee turnover...in the old days you had to know someone to get a job with giant....now it appears they do job fairs at the local high schools...the stores i am familiar with have extensive back room overstock issues. i do from time to time visit the local competitors to compare the way they look to us...we are not the bottom ringer but very close.....

    • They continue to lower rates of pay and increase technical skill expectations of the front line employee. That seems to be a weak plan and difficult to implement. Folks at the top making top dollar. Folks on the other end are part time and start at minimum wage. Can these employees be expected execute the brilliance that comes down from the top? Not so far. Somebody at the top needs to realize the dilemma they are facing and start the inevitable reversal process that must take place. Reduce the expenses at the top to invest in the employee at the bottom. Most mature companies (and governments) grow into the top heavy organization that can no longer compete against the leaner, meaner, and younger competition. Ahold in no different.

 
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