The Wall Street Journal-20080128-In Brief- -1-

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In Brief; [1]

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Ahold Sales Edge Higher;

U.S. Focus on Level Prices

Supermarket retailer Royal Ahold NV said fourth-quarter sales edged up to 6.61 billion euros ($9.7 billion) from 6.60 billion euros a year earlier, and that the turbulent U.S. economic environment hadn't had much impact on local market conditions, while European conditions were favorable. Ahold, whose chains include Stop & Shop and Giant-Landover in the U.S. and Albert Heijn in Europe, said that at constant exchange rates, net sales rose 6.5%. Following a strategy it used to turn around its Albert Heijn supermarkets in the Netherlands, Ahold in the U.S. has been offering permanently lower prices, steering away from temporary promotions. It also has added more private-label products and cut supply costs.

Shopping Chain Reports

Rise in Quarterly Net

Lotte Shopping Co., South Korea's largest department-store chain operator by sales, reported higher-than-expected net profit for the fourth quarter, largely on strong nonoperating gains. However, operating profit fell short of market expectations, deepening worries over margins. Lotte said fourth-quarter net profit rose 5.7% to 256.2 billion South Korean won ($270.7 million) from 242.3 billion won a year earlier. Gross sales grew 7.4% to 2.812 trillion won. Operating profit fell 1.8% to 212.6 billion won, suggesting deteriorating margins amid stiff competition in the local retail market. This is despite its efforts to diversify with ventures in supermarkets and specialty retail franchises.