Analysis – How can Colruyt get out of the catch-22 it created itself?

In a drastically changed and hugely competitive retail landscape, the lowest-price guarantee causes a catch-22 for Belgian market leader Colruyt Group. The retailer is the prisoner of its business model, but it cannot tinker with it. Or can it?

The worst is yet to come

Colruyt Group’s half-year figures were even worse than what the gloomiest analysts had expected, this week: sales are up only due to price increases and profits have halved. Moreover, the worst is yet to come, the company admits: in January, there will be an automatic wage indexation in Belgium, a new wave of price increases is coming, and the competition is not sitting still. It is very difficult to see any bright spots left in the dark story.