Colruyt Group sees market share and profits fall and warns of continuing pressure
Colruyt, the country’s largest supermarket group, has lost market share over the past year, its annual figures show. While turnover rose, the group also saw its profits fall.
The combined market share of Colruyt, Okay, Spar and Comarkt in Belgium has fallen to 28.5 per cent, down from 28.8 per cent six months ago. In a note on the outlook, the group states that its market share will “remain under pressure” in the new financial year.
It refers to a “disruption” in the competitive landscape caused by the introduction of Sunday opening, extended opening hours and the abolition of the mandatory rest day. As a result, the retail market is becoming increasingly competitive, it says.
Colruyt opens its Okay stores on Sunday mornings, but not its traditional Colruyt supermarkets. Many competitors do so, and discounters ALDI and Lidl have plans to do the same.
Despite the disruption, turnover rose by 3.1 per cent last year to 10.6 billion euros. Operating profit fell by 0.9 per cent to 465 million euros, however, while net profit dropped by 4.3 per cent to 337 million euros.
Meanwhile, Colruyt denies that it is carrying out a covert round of redundancies. “We are not undertaking any restructuring,” says CEO Stefan Goethaert. The group has previously come under fire from the Christian trade union, which alleged that it was spreading redundancies over time in order to circumvent the Renault Law on collective restructuring.
"But to then talk of a restructuring – that’s not what we’re doing"
The group – which also operates clothing shops, a wholesale business, fitness centres and pharmacies – employs just under 30,000 people in Belgium. That is 235 fewer than a year earlier, taking into account natural wastage and retirements.
“There are always fluctuations in the workforce. But this accounts for less than 1 per cent of our staff. And we don’t take this lightly; Colruyt is always focused on efficiency and improving productivity,” said Goethaert. “But to then talk of a restructuring – that’s not what we’re doing. We have 350 vacancies and last year we recruited 3,100 people.”
A Colruyt store in Antwerp © PHOTO ANP / HOLLANDSE HOOGTE / PETER HILZ
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