Belgian market leader Colruyt Group has seen its market share fall in Belgium. This is partly due to the revival at Delhaize, where Sunday openings have increased sharply.
Equal playing field
The combined market share of Colruyt Lowest Prices, Okay, Spar and Comarkt in Belgium is lower now than it was last year, Colruyt Group admitted at its General Meeting. The decline is partly due to a difficult basis of comparison: a year earlier, its shops were still benefiting from strikes and unrest at competitor Delhaize, but calm has since returned there.
Moreover, the latter is opening more and more shops on Sundays, now that they are given over to franchisers. The market leader feels the impact of this and again “calls for a level playing field between the companies”, CEO Stefan Goethaert said. He disagrees with the current situation, in which franchised stores have different (some would say, less) obligations – even if they are owned by a franchiser with a larger number of stores.
“Each formula has its place in the retail landscape, but differences in remuneration, for example, remain difficult to justify to employees. We are therefore steering towards a modernisation that reduces the number of joint committees and eliminates excessive differences”, the CEO continued. For Colruyt, which operates without franchisers, opening branches on Sundays is very expensive. On the other hand, the group’s Okay Compact city shops already do open on Sundays, as do most independent Spar supermarkets.
Fight back
While Albert Heijn, Delhaize, Intermarché and Jumbo are gaining market share in Belgium, Carrefour says it has stabilised theirs: this illustrates just how big the competition is today. Colruyt is fighting back by making its promotions more eye-catching and remaining committed to its lowest-price promise, COO Food Retail Jo Willemyns said. He also pointed out the interesting potential for Colruyt Group within the B2B market: this week, the third branch of Colruyt Professionals opened its doors. The retailer hopes to open a dozen such shops for professional customers.
The retailer, who has traditionally had its stronghold in lower-density areas, is also taking further steps in cities. The group recently took a stake in lunch chain BON, to be stronger in the convenience segment. Its products are already sold in Okay Compact city shops.
