Belgian supermarket chains Colruyt and Delhaize are cutting back on the number of products with their Everyday and 365 home brand labels. At Delhaize, all 365 products will eventually disappear, while Colruyt is phasing out its Everyday range. ‘Colruyt wants to focus on its Boni own brand and Delhaize on its own Delhaize range,’ explains retail expert Pauline Neerman. ‘There are also economies of scale to be gained by focusing on a single discount brand.’
By offering fewer own brands, Colruyt and Delhaize want to give consumers a clear alternative to the A-brands.
‘The home brand labels will remain present in the supermarkets. Messages to customers will also become simpler. Colruyt is focusing on its own private label Boni and Delhaize on the Delhaize range. This will make it possible to position these products far more strongly against the A-brands,’ explains retail expert Pauline.
Colruyt not only has the ambition of offering a “lowest price policy” vis-à-vis discounters Aldi and Lidl, but the supermarket chain has also expanded its range with own brand label products. Delhaize too is focusing on offering its own home branded products.
‘We are seeing supermarkets increasingly promoting their own brands. They want to offer these products as an alternative to A-brands, because many consumers are conscious of the price difference,’ says Neerman.
Won't scare off price-conscious consumers
The disappearance of the 365 line at Delhaize and the phasing out of Everyday products at Colruyt will not scare off price-conscious consumers, says Neerman.
When there are stock shortages or conflicts with A-brand suppliers, consumers quickly switch to an alternative.
‘People are creatures of habit, but we have seen that when certain products disappear from the shelves, people quickly switch to a home brand label,’ Neerman concludes.