Delhaize is doubling the number of "Little Lions", low-priced basic products under its own label, as part of its plan to win back customers who have stopped doing their weekly shops there – either because of its high prices or its franchising of stores.
Announcing the move via a full-page ad which appeared in all Belgian newspapers on Monday morning, Delhaize announced that hundreds of its own brands will become cheaper starting from the end of this week.
The advertisement read: "Delhaize has good products but you pay a lot for them.'That is what many people sometimes say about Delhaize. And that is a shame because everyone should be able to eat healthily every day. That is why Delhaize is taking new steps."
Delhaize is marketing itself as not being as expensive as people often think. The retail giant announced the launch of its autumn offensive with the slogan "Priceless", stating that from the end of this week, the price of 500 additional references with this label will go down by 10 to 30%.
"Little Lions are high-quality everyday products that are always low-priced. And to help you control your budget even better during the expensive month of September, we added a whole bunch of Little Lions to our range," it stated on its website.
These products with a reduced price can be recognised by red price tags on shop shelves. Delhaize will also lower the prices of well-known brands of soft drinks from the end of this week.
Damage control?
Delhaize is launching the campaign in September, as it is known to be an expensive month for many families due to the start of the school year – with parents needing to buy new textbooks, school supplies and more. The timing of the campaign could also be seen as an effort to draw back customers following reports of supermarket "greedflation".
However, the launch of the campaign also comes at a time when its image is being tarnished by the lingering labour dispute, following the announcement in March this year that the company would be franchising 128 Delhaize supermarket locations.
A destroyed Delhaize logo during a demonstration of the joint trade unions. Credit: Belga/ James Arthur Gekiere
The supermarket likely hopes this campaign will help do something about the negative image this has created: for months, both sides have engaged in a labour dispute that shows no signs of reaching a resolution.
In the last months, unions have been taking turns to shut down stores through targeted strikes. The company has attempted to counteract this move through the courts, regularly sending bailiffs to establish a record of the blockages.
While the impact on stores and customers in Flanders has limited itself in recent weeks, unions, as well as consumers, are calling for a boycott of Delhaize in French-speaking Belgium, where there are also more frequent unannounced strike and protest actions.
As a result, the number of customers going to Delhaize has decreased more in Brussels and Wallonia. One Delhaize shop in Hainaut is closed on Monday due to an action.
