Delhaize entered into an agreement on Monday with the Louis Delhaize group to acquire all of the shares of Delfood SA. This acquisition covers all 325 Louis Delhaize stores and businesses supplied by Delfood, logistics services and the head office in Belgium, Delhaize announced in a press release.
“Delhaize intends to expand its position on the Belgian distribution market and in particular in the convenience store segment. Thanks to this acquisition, Delhaize will strengthen its network of existing stores,” the brand underlined.
Preserve the future of the company
For the Louis Delhaize group, the sale of the Delfood company to Delhaize is the best option to preserve the future of the company, its staff and ensure its development. One hundred and fifty years after the opening of the first Louis Delhaize store in 1875, the brand will therefore join the portfolio of Delhaize brands and brands.
Staff fears
On the staff side, this decision by the Louis Delhaize group to sell its entire stake in Delfood to Delhaize intensifies fears for employees, particularly those of the seven Cora hypermarkets in Wallonia. This could mean a deterioration in employment conditions or uncertainties about their professional future.
This gradual withdrawal of the group from mass distribution, after the successive sales of the Match, Smatch, and Delitraiteur stores in recent years, indeed raises concerns about the future of employment and the sustainability of the remaining activities. Unions, already mobilized to defend workers’ rights, fear store closures, restructuring or job cuts in a context of market consolidation.
The agreement still needs to be approved by the Belgian competition authority.
The Louis Delhaize group is “dismantling”, its eyes turned towards the Cora
“The Louis Delhaize group is dismantling. The Bouriez family, owner of the group, is in the process of withdrawing from this world of commerce,” analyzes Christophe Sancy, editor-in-chief of Gondola, a magazine specializing in the distribution sector.
The news has been particularly busy in recent months in the distribution sector, and in particular that concerning the Louis Delhaize group. In July 2023, Carrefour first bought the Cora hypermarkets and Match supermarkets in France. At the same time, an announcement was made concerning the acquisitions of the Cora, Match and Smatch supermarkets in Luxembourg by E.Leclerc.
-Two months later, in September 2023, Colruyt announces an agreement for the acquisition of 28 Match stores and 29 Smatch stores in Belgium, which become Comarché. The following year, the same group approved the takeover of the Delitraiteur store chain.
Now, it is Delhaize’s turn to reach an agreement with the Louis Delhaize group and take over Delfood and the structure’s 325 Louis Delhaize points of sale.
“It was expected that Delfood and the points of sale would be taken over. The rumor had been circulating since November,” underlines Mr. Sancy. “It’s a modern concept and there are some gems in the list of outlets, such as some stores in gas stations. There is real potential. We have talked a lot about big competition for supermarkets, but we see that things are also changing with local shops.”
A “big blow”
The fact remains that, according to the editor-in-chief of Gondola, Delhaize “made a big move”, with the acquisition of “many stores”. The two groups confirmed that the management team and employees of Delfood are maintained, as well as the contracts with affiliated merchants. “There is no declared intention to convert the points of sale into Shop & Go,” emphasizes Mr. Sancy. According to the latter, there “are no particular threats to stores or jobs”.
“Delhaize seems to be ruling it out today,” he notes. Of the Louis Delhaize group, only Cora remains in Belgium. Solutions have already been sought but, for the moment, they are still the property of the group.
“At least two Coras out of the six in Belgium are doing well,” specifies Christophe Sancy. “But the hypermarket format is a business in its own right and it is more complicated. Their future is a big question mark and it is legitimate for staff to ask questions.”
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