Amsterdam, April 23 - Dutch supermarket group Ahold said on Wednesday it would keep a close watch on economic developments and rising food prices, and it expected its U.S. operations to improve in the later part of 2008.
"We will remain vigilant on the changing economic situation and rising food prices," Ahold Chief Executive John Rishton told shareholders at a meeting.
Ahold, the world's seventh largest retailer by sales, makes more than half its revenue in the United States, and the rest in Europe. The U.S. share has declined in recent years after the sale of some assets, but the company is trying to boost its U.S. operations.
By 1255 GMT shares traded down 1.6 percent, underperforming the DJ Stoxx European retailers' index , which traded down 1.0 percent.
In 2006, Ahold began a two-year overhaul of its two main U.S. chains, Stop & Shop and Giant-Landover, cutting prices and offering more own-brand products and greater variety. It also sold its catering supplies unit U.S. Foodservice.
Half of Ahold's operating profit comes from Dutch grocery chain Albert Heijn. It is also present in the Czech Republic and Slovakia and has joint ventures in Portugal and Sweden.
Rishton said he expected to sell Ahold's 49 percent stake in Portugal's Jeronimo Martins Retail (JMR) this year.
"We are confident we will sell JMR Holdings this year," he said at the shareholders meeting.
Scandinavian joint venture ICA, in which Ahold holds 60 percent, will continue to be part of the group, Rishton said, as it has a very strong market position.