Colruyt’s market share continues to decline; earnings fall slightly

Colruyt Group saw its revenue rise by 3.1% to 10.6 billion euros in the past fiscal year. While its market share remains under pressure, net income also declined. Nevertheless, the retailer is satisfied with the results.

Promotional campaigns pay off

Analysts were eagerly awaiting the annual results because, in December—despite a decline in operating profit during the first six months of the split fiscal year —the retailer had promised to match the previous fiscal year’s operating and net results for the full year. It did not quite succeed: the increase in revenue is partly due to the integration of acquisitions; the gross profit margin remained stable compared to the previous fiscal year at 30.5%; operating cash flow (EBITDA) increased by 2.9% (stable at 8.3% of revenue); operating profit (EBIT) fell by 0.9% to 465 million euros (4.4% of revenue), and net profit fell by 4.3% to 337 million euros (3.2% of revenue).

Price increases, productivity improvements, extended opening hours at Colruyt, Okay, Spar, and Collect&Go, and promotional campaigns did offset the weaker results of the first half of the year, but could not prevent the combined market share of Colruyt, Okay, Spar, and Comarkt in Belgium from falling further to 28.5%. In the first half of the year, that figure was still 28.8%. The company acknowledges that its market share remains under pressure.

“Satisfied with this result”

Revenue for Colruyt Lowest Prices (including Comarkt) rose slightly by 0.7%, while that of Okay, Bio-Planet, and Cru increased by 2.1%. The retailer says it intends to stimulate growth in its grocery stores in three ways. First, by making adjustments to its product offering, including baking a selection of bread and baked goods on-site. Second, by opening additional Colruyt Professionals stores and further developing its wholesale and foodservice operations. Third, by expanding in cities with tailored formats such as Okay City.

“Given the many challenges in the Belgian retail market, which is becoming increasingly competitive due to a series of structural and disruptive changes—such as Sunday openings and the abolition of the mandatory day of rest—we are satisfied with this result,” says CEO Stefan Goethaert. “These challenges, combined with differences in wage systems within the existing joint committees, create an uneven playing field in the Belgian retail market. We therefore reiterate that reforming the wage systems is essential to ensure fair competition.”

Colruyt Group also aims to achieve at least the same operating result in the 2026/27 fiscal year, both in absolute terms and in terms of margin, the press release concludes.