2023-09-25 09:47:10
Delhaize, Mestdagh, Match and perhaps Cora soon, what is pushing large groups to rationalize, franchise or resell? Are the inflation of energy costs but also the increase in receipts causing the movements observed in recent months?
For the editor-in-chief of Gondola, it depends on the situation: ” The case of Match and Smatch, I do not place it in this context because they had already been in trouble for a long time. They obviously had their quality. But it is certain that, for example in terms of price, they were poorly positioned. They were even the worst positioned on the market: when they wanted to try to lower prices, they went into the red, that is to say they lost money. So it was kind of a very complicated equation. But it’s true that inflation won’t help anything because people are even more sensitive to prices. And so if you’re not the cheapest or the most attractive, you’re going to have even more problems.“
A sector that is lining its pockets?
Profits from the food trade more than doubled in 2020 (+108%), according to data from the National Bank compiled by the CSC Alimentation, but how can we then explain these franchises and resales?
Isn’t the sector benefiting from inflation in Belgium? For Christophe Sancy, it’s not that simple: “You just need to look at the results of large groups, and in particular the results of large groups if they are in Belgium. A large part is profitable. Despite everything, these are areas where we work on narrow margins. And so if consumption breaks down, what we see today is that sales volumes are falling because everyone is tightening their belts, this might threaten profitability. There have been periods, notably the Covid period, which have been very profitable, particularly at the convenience store. People no longer went to restaurants, so they went to buy to cook at home. We’ve had two years that have been exceptional for a lot of stores, not the biggest ones.“
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