Jumbo to drop lowest price guarantee in Belgium?

Rumour has it supermarket chain Jumbo will not carry its lowest price guarantee in Belgium when it expands south, even though that is its claim to fame in the Netherlands. The Dutch newcomer wants to avoid a price war with Belgian market leader Colruyt.

No face-off

Several sources say that Jumbo Belgium will opt for a different price strategy than its Dutch counterparts, specialist website Distrifood has learnt. That is remarkable as its lowest price guarantee is the cornerstone of the ‘seven certainties’ with which the chain has conquered the Netherlands. However, in Belgium the situation is different as the market leader also carries such a guarantee – and that is a confrontation that Jumbo seems to want to avoid.

A direct confrontation with its main Dutch rival Albert Heijn apparently is less of a problem for Jumbo: two of its first three locations (Pelt and Rijkevorsel, next to the Dutch border) will be next door to stores of the Dutch market leader. The Ahold Delhaize subsidiary is preparing for a fierce fight: its Pelt store is currently closed for renovations and will open next weekend.

To avoid an internal confrontation, with stores on the Dutch side of the border that fear Belgian Jumbo stores will take away a part of their turnover, the company is negotiating compensations. Dutch franchisers will also be given the opportunity to open stores in Belgium. The competition will be terrific: “Jumbo will show the Belgians something they do not know yet”, the yellow chain says.