DELHAIZE BELGIUM CONFIRMS ITS NEW COMMERCIAL POLICY
Reduced prices on 3,400 items so far and more to come
Delhaize Belgium is continuing its new commercial policy, “Every Day Fair Price”, the main objective of which is to provide the best quality at the lowest price, consistently throughout the year. This price stability distinguishes itself from a “high-low” approach (low prices for short periods through promotions). It guarantees our customers in all our Belgian stores low prices every day for the market’s finest food products in terms of quality, assortment and services.
So far, Delhaize has decreased 3,400 prices across all product categories. 2,800 were reduced at the end of March, cutting the average shopping basket price by 2.5% compared with January 1, 2002. 600 additional reductions were added beginning of May.
Delhaize offers products that suit all pockets. On top of the many national brand products for which the prices have been cut, Delhaize also offers 4,000 high-quality and innovative Delhaize private label products at prices up to 15% lower than national brands, plus 200 Derby-products, the first-price label to be aligned with the Belgian market’s hard discounters.
Like before, Delhaize rewards its loyal customers also through its loyalty card, the so-called Plus Card, which gives them a discount of at lease 1% of the total price of their purchases.
Low prices and high quality every day of the year: a fair price
Delhaize’s new commercial policy guarantees customers a low price for the quality offered. By guaranteeing this low price for all products throughout the year and in all its stores nationwide, Delhaize builds customer trust. The retailer has stopped “high-low” pricing and made of price stability a priority. “We have negotiated with our suppliers in order to obtain products at the same low price all year round. Customers are no longer forced to stock certain goods during promotions, avoid certain items at other times, or even visit stores of competitors. They may occasionally spot a lower price elsewhere, but overall, if they regularly shop at Delhaize, they will realise that the prices on offer there represent the best value. Analysis of customer spending over a year shows that Delhaize customers are better off. At Delhaize, they can buy whatever they want whenever they want it, in full confidence that the price is fair”, explains Arthur Goethals, General Manager of Delhaize Belgium.
3,400 prices reduced and more to come
This strategy of the best quality offered consistently at the lowest prices was launched in 1999 for fruit and vegetables. It was subsequently extended to meat products and Delhaize private label products in 2000. Since January 1, 2002, the strategy impacts the whole Delhaize assortment, which consists of 18,500 items, across all categories and brands: leading national brand products, Delhaize own-brand products, Bio, Derby and the many Delhaize exclusive items.
Delhaize is committed to offering a fair price every day.Since January 1, the price of 3,400 products has been cut. These products are currently highlighted by more than 1,000 special shelf-talkers in our stores, showing both the old price and the new reduced price.
Delhaize applies the same prices in all its supermarkets: in other words, a uniform price throughout the country.
Taking into account the quality of the products offered, the fruit and vegetables, meat and fish are sold at the best price on the market.
In order to warrant our customers’ confidence and guarantee them low and competitive prices in line with the quality provided, Delhaize observes 200,000 prices all over Belgium on a weekly basis. This analysis enables the retailer to monitor and reduce certain prices, thereby looking after the interests of its customers.
And finally, Delhaize continues to offer volume promotions (for example: 2+1 or an extra quantity free) as a further benefit for its customers.
Delhaize and Derby brands: clearly cheaper
Delhaize provides products to suit every pocket. Apart from national brand products, the chain offers 4,000 Delhaize private label products which are appreciated by customers for their innovative, practical nature and their quality. They represent 30% of sales. With a level of quality which at least equals the national brands, these items are up to 15% cheaper than their big-name equivalents. This is possible because they benefit from the total communication strategy of the company, which enables marketing costs to be kept down, enabling the sale of these products at the best possible quality/price ratio.
The 200 Derby-products sold at Delhaize are the cheapest items in Delhaize’s assortment. For these basic products, prices are in line with those of the hard discounters.
This means that Delhaize can meet the needs of all customers, whatever their budget is.
The Plus Card: 1% additional discount on the average customer shopping basket
At Delhaize, 90% of purchases are made with the Plus Card. Customers receive 1 point for every euro spent. Once he has accumulated 500 points, the customer receives a 5-euro voucher. The new value of the Plus Point is therefore equivalent to 1 eurocent, representing a minimum 1% discount on the total price at the checkout and a supplementary advantage for the Delhaize customer.
Contact
Catherine Alexandre: +32-2-412-82-57