The merger of Ahold and Delhaize was formally completed last year. “People are working hard on synergies between both parties behind the scenes. But consumers do not yet notice much of it in the shops. Pressure is mostly put on suppliers now. Besides, Albert Heijn and Delhaize both still have to hive off a certain number of shops in Belgium. This means these are obligated to be taken over by a third party. As long as this has not yet happened, Delhaize and Albert Heijn still have to be competitors in Belgium,” says Prof Gino van Ossel from the Vlerick Business School.
He explains: “The current reality is that the main office is already working closely together at a holding level, but on the other hand, there are no direct contacts between Delhaize and Albert Heijn Belgium. That sounds somewhat contradictory, but that is only allowed once those shops have been sold.” Because of the merger of the two supermarket chains, a company is created with 6,500 shops globally, and an annual return of more than 54 billion euro. “The impact will be huge,” Van Ossel expects. “From a savings point of view, the assortment will be partially tuned to each other, and ‘best practices’ will be mutually exchanged and executed. There will be fewer suppliers and an enrichment of the assortment. Perhaps they will sell each other’s own brands, or both of those brands will be given a new, shared name.”
AH Belgium will disappear
What will happen to Albert Heijn Belgium? “I expect both parties will maintain their singularity in the country they originated in. Delhaize in Belgium, and Albert Heijn in the Netherlands. They will work together a lot, but a line has to be drawn somewhere because of the different food cultures. But I expect AH as a shop formula will disappear in Belgium. Many other experts do not share my opinion, various visions are circulating. I expect that the Albert Heijn name will disappear from the streets. AH will have disappeared from Belgium within five years.”For more information:
Prof. Gino Van Ossel
Retail & Consumer Goods Center
Vlerick Business School
Gino.VanOssel@Vlerick.com
Tel.: +32 9 210 98 67
Fax: +32 9 210 98 75
www.vlerick.com/retail