Delhaize has decided to cut prices of 1000 products of national brands in Belgium. It’s the biggest price-cut the retailer has ever made. For a couple of years Delhaize has been a real price-fixer. The launching of the budget brand 365 was the first step, later followed by huge price-cuts on brand products. Thanks to this new politic, Delhaize has a bigger market share.
It’s already the 5th price-cut Delhaize has carried through in one and a half year time. Thanks to a combination of Delhaize’s biggest trumps (namely a qualitative offer and a well balanced assortment), a stronger positioning on national brands and an elaborate offer of qualitative own brands at sharp prices, Delhaize’s position as ‘value leader’ on the Belgium market becomes stronger.
Products which underwent a price-cut are for example Nutella, the hazelnut spread. Nutella will become 7% cheaper. A package of diapers, Activ fit maxi will become almost 12 percent cheaper.
As consumer this is partially good news... I mean now it’s good news. But a price-cut of 12 percent means that we have paid too much in the past! What will happen with the producers? I hope for them they won’t feel too many pressure. We may not forget that cheaper own brands have to be produced and that can only be realized if the brand manufacturer makes enough profit.
I doubt the new strategy of Delhaize. Delhaizes range of products isn’t that huge anymore. Of most products you can only find 2 brands. Besides most of the time one of the 2 brands is the own brand. Why does Delhaize accent the price now? I have always associated Delhaize with the quality aspect. So I find it normal that we have to pay a higher price for the products of Delhaize. That does not mean that I’m never surprised when the prices appear on the screen.
This is also good news for the Colruyt- buyers as Colruyt always sells at lower prices than most of the competitors. Colruyt will have to follow the price decreases but actually, this won’t be necessary. I think Delhaize will never sell at prices lower than those of Colruyt. After all the price-cuts Delhaize has already made, they are still 10.9 percent more expensive than Colruyt.
Het nieuwsblad: 'Delhaize start nieuwe ronde in prijzenoorlog'
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I think it is a good initiative of Delhaize to reduce their prices. Maybe they will gain more customers because of that.
BeantwoordenVerwijderenBut it seems a bit strange that they are still more than ten percent more expensive then Colruyt after 5 price-cuts in one and a half year. I know that not all their products reduce in price and that the different price-cuts concern to different products. But when you compare both supermarkets, you still will find a big difference in price.
I don't really get it why Delhaize is doing this. It has been in the media that people go to Delhaize more often because of the whole drama going on inside Carrefour. They already have more clients and now they want to drop their prices too? If this is a new strategy that Delhaize is trying, I can understand it. Because the drama in Carrefour is not a long-term event, they want to keep their new customers.
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