Despite losing market share, Colruyt will not open on Sundays

Although Colruyt is losing customers to competitors that are open on Sundays, the retailer reiterates that opening on Sundays is not an option for the time being: “Not as long as there isn’t a level playing field when it comes to wages.”

Market share under pressure

A few years ago, the combined market share of Colruyt, Okay, Spar, and Comarkt in Belgium was still over 30%, but it has since fallen to 28.5%, as recently revealed in the publication of the financial results. In the first half of the year, the market share stood at 28.8%. The retailer does not expect this erosion to stop in the current fiscal year.

One of the causes is the widespread adoption of Sunday opening hours among most competitors, many of whom are now open seven days a week. This is costing Colruyt customers and revenue. While Aldi and Lidl are preparing to enter into talks with the unions about the possibility of opening at least some of their stores on Sundays as well, Colruyt is not doing so.

Labor costs are too high

CEO Stefan Goethaert reiterated this to the Belga news agency. “That won’t happen as long as there isn’t a level playing field when it comes to wages,” he said. Because Colruyt does not work with franchisees like Delhaize, Carrefour, or Albert Heijn, labor costs are too high. “The compensation system is still based on a situation from decades ago and needs to be revised.”

Opening on Sundays under the current conditions would not be profitable for the Colruyt Lowest Prices stores. And profitability is more important than market share: “For us, market share has never been a goal in itself. It is a consequence,” said the CEO.