Albert Heijn‘s discount stunt causes fierce reactions: customers are angry because of unavailable products, while competitors seek legal action. Is the “pay 1, get 3” action the start of a new stage in Belgium’s price wars?
“Not sustainable”
The chain’s flyer did not go unnoticed: especially after our article last Monday went viral. The consequences are far-reaching: Belgian Albert Heijn stores are busier than ever and several products are already sold out – much to the displeasure of customers. Moreover, not all references will be restocked, employees say – leading to angry customers’ reactions both on social media and in mails to our offices.
Competitors are not satisfied as wel: Colruyt’s Chris van Wettere admits he was baffled by the 1+2 action. “I do not think this is a sustainable business model,” he says in the local media. Bound by its lowest price guarantee, Colruyt has responded with local price reductions, but as most products are not in Colruyt’s product range the damage was still limited.
“Destructive strategy”
Buurtsuper.be, which groups independent supermarkets, is much angrier and asks for an inquiry into the discount: selling at a loss is prohibited in Belgium. This is a destructive strategy, director Luc Ardies claims: “In a time when the food sector absolutely needs more means to cope with the many future challenges the sector faces, this kind of action is a path straight to destruction.” The Dutch retailer thinks it is withint he boundaries of the law: “Let the inspectors come if need be, they will not find any breaches of the law.”
Manufacturers whose products are part of the 1+2 action, received no prior notification, but none of them wanted to give a statement on the record.
