Despite an increase in turnover in the first half of the financial year, Colruyt Group‘s profits are under pressure. Market share is also falling again as a result of fierce competition on the Belgian market.
Strong competitive environment
Colruyt Group reported a 4.5% increase in turnover to 5.3 billion euros in the first half of the 2025/26 financial year, but the gross profit margin fell from 30.3% to 30.1%. operating profit (EBIT) fell by 16% to 213 million euros or 4% of turnover, and net profit fell by 23% to 150 million euros.
Both the evolution of turnover and the evolution of the gross profit margin were mainly influenced by high price and promotional pressure and stronger competition in the Belgian retail market, the retailer reports in its press release. The market leader has to constantly respond to very aggressive promotional campaigns by competitors. The consequences are also reflected in the market share of the Colruyt Lowest Prices, Okay, Spar, and Comarkt food formulas, which fell from 29.2% in the same period last year to 28.8% in Belgium.
“Unlevel playing field”
The figures come as no surprise: CEO Stefan Goethaert had already warned about this at the last General Meeting. “For the full 2025/26 financial year, we will continue to strive to match last year’s operating and net results,” he says. However, the challenges in the Belgian retail market are considerable as a result of a series of structural changes, such as Sunday openings at competitors and the early implementation of the abolition of the mandatory rest day.
“This requires greater flexibility and efficiency from retailers, but differences in wage systems within the existing joint committees lead to an uneven playing field. A reform of the wage systems is essential to ensure fair and transparent competition, both in the short and long term,” said the CEO.
Growth in non-food
Colruyt is counting on, among other things, the Vasco International Trading retail alliance, established at the beginning of this year, to increase its purchasing effectiveness with major international brands: “Negotiations with an initial selection of suppliers are currently underway.” Okay stores will also open on Sundays from next year. The Okay City city stores are already open seven days a week.
Food activities accounted for 94.2% of consolidated sales in the first half of the year. In non-food, the group points to revenue increases at fitness chain Jims (+116%, partly due to the acquisition of NRG), online pharmacy Newpharma (+9.8%), The Fashion Society (+2.5% on a comparable basis), and Bike Republic (+9.1%), the bicycle chain that, according to the press release, has ambitions for further growth.
