In 2008, we delivered solid performance with particularly strong results in the last quarter, and achieved an underlying retail operating margin of 5.0 percent for the full year. Net sales were EUR 25.7 billion, up by 3.3 percent compared to last year. At constant exchange rates, net sales increased by 6.9 percent.
During 2008, we completed the Value Improvement Program, including the rebranding of Stop & Shop and Giant-Landover. This strengthened our relative price position and led to market share gains and improved financial results in the second half of the year. Meanwhile, Giant-Carlisle continued its strong performance, gaining significant market share.
In Europe, Albert Heijn had another excellent year, including the conversion of 54 stores to the Albert Heijn banner following the divestment of our stake in Schuitema. Albert / Hypernova was able to maintain its market position and break even in very competitive markets in the Czech Republic and Slovakia.
Ahold’s operating income was up EUR 130 million, or 12.2 percent to EUR 1,198 million. Income from continuing operations was EUR 868 million, up 15.3 percent compared to last year.
Last year, we reinstated an annual dividend and for 2008, we propose to increase our dividend by 12.5 percent to 18 eurocents per common share.