Oversupply of Supermarkets in Belgium: Insights from Aplsia President Pascal Niclot

2023-06-03 13:06:00

Pascal Niclot, franchisee of the Delhaize group and president of Aplsia, the Professional Association of Independent Self-Service in Food, answers questions from Free on the oversupply of supermarkets in Belgium.

1. Do you also think that there are too many supermarkets and convenience stores in Belgium?

It is undeniable and the figures prove it. Especially since small, medium or large supermarkets, we must add food offers in service stations, train stations and metro stations where the brands also want to be represented. Each year, our partners announce an impressive number of openings, which raises many questions. What will remain of this number after the first three years of operation? Where will they be located? In the city center, which is already full of offers? In rural areas where consumers are not as numerous? On one side or the other, the independent will often be confronted with a lack of profitability.

2. Franchisees are said to do better at this…

We would like to confirm this. But you should know that our profitability is under permanent pressure and that it is decreasing year after year. At issue: the price war, cross-border purchases, energy, the wage and rent index, the Covid which brought us more sales but, contrary to popular belief, no more profitability, telework which impacted points of sale in the center of large cities and student districts, until the war in Ukraine which caused food and non-food prices to rise unacceptably. Nevertheless, it is certain that we are much more attentive to the slightest expense and to the well-being of our staff, contrary to what certain people or movements want to insinuate. Human capital and our consumers are, for us independent, reference values.

3. Where could the solution to this oversupply of stores come from?

We at Aplsia believe that it is high time to legislate at the level of new establishments. Some municipalities have already taken decisions at this level. But nothing tangible or generalized.

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