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The Washington Post reports this morning that the operational merger of Ahold’s Giant of Landover division with its fellow Stop & Shop division has created morale issues that must be dealt with.

"We need to win our people back," CEO Marc E. Smith said in an investor presentation, noting that the 600 layoffs had sent a “shock wave” through the company.

The Post reports that Smith said that “management needs to win over Giant workers by improving the chain's operations and providing ‘a long-term plan that clearly signals we will invest in the market and that their career aspirations will be met.’”

Smith said that Giant also “will require a major investment in store renovation and replacement” over the next few years.

William J. Grize, the head of U.S. retail operations for Ahold, told the analysts the company is "not totally pleased with the results to date," according to the Post.
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