Jef Colruyt quits as CEO, Stefan Goethaert succeeds

For the first time in its long history, a ‘stranger’ takes the helm of Belgian retailer Colruyt Group. Jef Colruyt hands over the day-to-day management to Stefan Goethaert after more than 28 years as CEO, but he will remain chairman. Analysts, meanwhile, are surprised at both the timing and the choice.

International experience

On 1 July, Goethaert (currently COO Food Production, Business and Group Services) will become CEO of Colruyt Group. Goethaert is a civil engineer, who started his career in chemicals at Prayon and joined Colruyt Group in 2012, initially in logistics. He becomes the first CEO who does not belong to the Colruyt family.

“Stefan brings a solid international management experience, combined with the required leadership skills and a value-driven vision. Having worked in the group for ten years, he has the necessary competence and a thorough knowledge of the various activities to further shape and realise Colruyt Group’s strategy in a retail market that is in full evolution”, Jef Colruyt explains.

The choice of Goethaert is somewhat surprising: observers had expected the group’s operations director Jo Willemyns to take over. He also an in-law.

Speculation ended

There had been speculation for several years about when Jef Colruyt would pass on the torch. After all, at Colruyt Group, executives retire at 62 and the CEO is already 64. Analysts and investors had been pushing for renewal for some time, but now the CEO’s retirement comes at a difficult time for the eponymous company. He announced his decision at the same time as the publication of the annual figures for the 2022/23 financial year, and they are not good – although there was improvement in the second half of the year.

Colruyt Group’s revenue rose by 7.4 % to 10.8 billion euros, but operating profit fell 25.8 % to 279 million euros. Colruyt Group could not fully pass on the sharply increased costs to customers, due to its major chain’s lowest price guarantee. The company had previously warned of a declining result, but managed to recover in the past two quarters: the food stores’ market share rose from 30.8 % to 31.0 %, and it is also increasing further at the start of the current financial year. Therefore, the worst seems to be behind us: the group expects operating and net profit to “increase significantly in financial year 2023/24.”