Lidl complains about unfair competition in Belgium

If Lidl wants to open its Belgian supermarkets on Sundays, it must pay its staff a 200% bonus. CEO Marjolein Frederickx speaks of “unfair competition” and asks the government to take action.

Uneven playing field

Lidl is not the first retailer to complain about the uneven playing field in the Belgian retail sector in terms of working conditions. Supermarkets run by independent entrepreneurs pay lower wages and lower premiums. In addition, they can more easily employ students and flex workers. Almost all Delhaize, Albert Heijn, Carrefour Market, Spar, Intermarché, and Jumbo stores are now open on Sundays.

However, this is not profitable for integrated chains: “We have to pay staff a 200% premium on Sundays,” says Frederickx in an interview with De Tijd. “This is unfair competition.” Having the stores run by independent entrepreneurs is not an option, she says: for a discount chain, it is essential that processes and offerings are uniform and centrally managed.

Rising market share

Colruyt and Carrefour (for the hypermarkets) have already complained about this situation, and now Aldi is doing the same: “We are asking for a reform of the joint committees for the retail sector,” the discounter told the newspaper. As there is no agreement in sight between the supermarket chains and the trade unions, the chains involved are looking to the politicians: “The coalition agreement states that the joint committees must be simplified. I am convinced that these steps will be taken,” says Frederickx.

Despite the handicap on Sundays, Lidl continues to gain market share: according to figures from YouGov, its market share grew from 7.3% to 9.2% between 2017 and now. However, the retailer suffered an operating loss of 12 million euros on a turnover of 3.2 billion in Belgium last financial year. Turnover growth should lead to a return to profitability: the discounter plans to open 80 new supermarkets by 2038.