Belgian Retailers Rethink Private Label Strategies Amidst Price Wars and Margin Pressures

Brussels, Belgium – Belgian supermarkets are undergoing a subtle but significant shift in their private label strategies, a move driven by intense competition, particularly from discounters like Aldi and Lidl, and a keen eye on profitability.While consumers are unlikely to see drastic changes in product availability or immediate price hikes, the underlying adjustments signal a more nuanced approach to managing in-house brands.

At the heart of this evolution is the ongoing battle for market share and consumer loyalty. Retailers like Colruyt are committed to maintaining their price-competitive edge, a cornerstone of their business model. This means that while they aim to offer the lowest prices, their private label offerings are not static. They are designed to be agile,reacting to market trends and competitor pricing.If market conditions necessitate price adjustments, these retailers are poised to follow suit. Similarly, if the strategic importance of a broad range of “white label” products diminishes in favor of a more optimized selection, these companies will adapt their assortments accordingly.

Though, this strategic recalibration also shines a light on the frequently enough-overlooked economics of private label brands. For retailers, the profit margins on their own-brand products are typically tighter compared to branded goods. As one industry expert points out, “The prices are low, just like the margins. So you have to ask yourself if the effort is worth it and weather it is wise to continue to invest in products that do not generate income.” This sentiment underscores a critical question for supermarkets: how to balance the perceived value of private labels with their actual contribution to the bottom line.

Evergreen Insights:

The Private Label Evolution: The trend of retailers re-evaluating their private label portfolios is not unique to Belgium. Globally, supermarkets are increasingly focusing on their own brands as a key differentiator and profit driver. However, this requires a delicate balance between offering value and ensuring healthy margins.
Impact of Discounters: The aggressive pricing strategies of discounters like Aldi and Lidl continue to shape the entire retail landscape.established supermarkets must constantly innovate and optimize their offerings to remain competitive, often leading to strategic adjustments in their private label approach.
Consumer Perception vs. Reality: While consumers often associate private labels with savings,the internal economics for retailers can be complex.Understanding these underlying dynamics is crucial for appreciating the strategic decisions being made in the supermarket aisles.
Agility as a competitive Advantage: In a rapidly changing market, the ability of retailers to adapt their strategies, including their private label offerings, in response to consumer demand, competitor actions, and economic pressures is a key determinant of long-term success.

Despite these internal adjustments, the outlook for consumers remains stable. Experts anticipate minimal disruption, with a consistent choice of products available. As an example, at Delhaize, the transition from the “365” brand to the “Delhaize” brand signifies a continued commitment to competitive pricing without compromising the availability of equivalent, affordably priced products. This strategic simplification is expected to continue across the sector, with retailers actively monitoring competitor pricing to ensure they remain attractive to shoppers. The ultimate goal is to maintain competitiveness, and this often means staying vigilant and responsive to the ever-shifting dynamics of the grocery market.

What impact will the discontinuation of “Everyday” adn “365” have on low-income consumers in Belgium?

Supermarkets Shift Brands: Colruyt and Delhaize Discontinue “Everyday” and “365” Lines

The Discontinuation of Private Label Brands

Belgian supermarket giants Colruyt and Delhaize have recently announced the phasing out of their respective value-focused private label brands, “Everyday” (Colruyt) and “365” (Delhaize). This move signals a significant shift in supermarket strategy, impacting consumers seeking budget-friendly grocery options. The decision, made in late 2024 and fully implemented throughout 2025, reflects changing market dynamics and a re-evaluation of brand positioning.

Why the Change? Analyzing the Market Forces

Several factors contributed to this decision. Rising inflation,while easing somewhat in mid-2025,has fundamentally altered consumer shopping habits. While initially benefiting value brands, the sustained pressure led to a reassessment of profitability.

Profit Margins: Private label brands, while attracting price-sensitive shoppers, frequently enough operate on thinner profit margins compared to established national brands.

Brand Perception: The “Everyday” and “365” lines, while popular, were perceived by some consumers as representing a compromise on quality.

Focus on Core Brands: both Colruyt and Delhaize are prioritizing investment in their core brand offerings and premium private label alternatives.

Competitive Landscape: Increased competition from discount retailers like Aldi and Lidl, known for consistently low prices, put further pressure on the value brand segment.

What Replaces “Everyday” and “365”? new Strategies for Value

Colruyt and Delhaize aren’t abandoning the value segment entirely. Rather, they are adopting new strategies:

Enhanced Promotions: Increased frequency and depth of promotions on national brands. Expect more frequent “buy one get one free” deals and temporary price reductions.

Strengthened Core Private labels: Investment in improving the quality and range of their existing private label brands, positioning them as a more attractive alternative to national brands without the “budget” stigma. Colruyt’s “Fine Food” and Delhaize’s “Supersmart” lines are examples.

Price Matching Guarantees: Delhaize has implemented a price matching guarantee, promising to match the prices of competitors on identical products.

Focus on Loyalty Programs: Both retailers are emphasizing their loyalty programs (MyColruyt and SuperPlus) to offer personalized discounts and rewards.

Impact on Consumers: What Shoppers Can Expect

The discontinuation of these lines will likely lead to:

Slightly Higher Grocery bills: Consumers who relied heavily on “Everyday” and “365” products may see a modest increase in their grocery bills,especially for staple items.

Increased Promotion Hunting: Shoppers will need to be more proactive in seeking out promotions and discounts to maintain their budget.

Shift to Alternative Retailers: Some consumers may switch to discount retailers like Aldi and Lidl for consistently lower prices.

Greater Brand Flexibility: Consumers may become more open to trying different brands, including store brands from competitors.

Colruyt’s Stock Activity & Internal investment

Recent observations, as noted in online forums like Spaargids.be (as of May 7th,2025),suggest colruyt’s purchase of 1 million EUR in shares might potentially be linked to internal employee incentive programs rather than a broader market strategy. This highlights a focus on internal motivation and performance alongside the external brand shifts. This internal investment doesn’t directly impact consumer pricing but indicates a company-wide focus on value and performance.

Navigating the Changes: Practical Tips for Budget-Conscious Shoppers

Here are some actionable tips to help you navigate these changes and keep your grocery bills in check:

1. utilize Loyalty Programs: Maximize the benefits of MyColruyt and SuperPlus by actively collecting points and redeeming rewards.
2. Compare Prices: Don’t assume one supermarket is always cheaper. Regularly compare prices across different retailers.
3. Plan your Meals: Meal planning helps reduce impulse purchases and food waste.
4. Embrace Seasonal Produce: Seasonal fruits and vegetables are typically cheaper and fresher.
5. Consider Frozen Options: Frozen fruits and vegetables are frequently enough more affordable than fresh and have a longer shelf life.
6. Look for Promotions: Pay attention to weekly flyers and in-store promotions.
7. Explore Alternative Retailers: Don’t be afraid to shop at Aldi, Lidl, or other discount retailers.

The Future of Supermarket Private Labels in Belgium

The decisions by Colruyt and Delhaize represent a broader trend in the supermarket industry. Retailers are increasingly focused on optimizing their brand portfolios and maximizing profitability. While value brands will likely remain a part of the landscape, their role may evolve, with a greater emphasis on quality and