Supermarkets on verge of costly price war
31 August 2005, BRUSSELS — Carrefour might have sparked a supermarket price war, announcing it is cutting the prices of hundreds of its most popular products.
31 August 2005
BRUSSELS — Carrefour might have sparked a supermarket price war, announcing it is cutting the prices of hundreds of its most popular products.
Both Carrefour and subsidiary GB supermarkets are to cut prices, Flemish broadcaster VRT reported. A large scale advertising campaign has also been launched.
The prices of some 500 products in GB supermarkets are to be cut, including the prices of about 270 brand name products.
GB supermarkets started reducing prices on Tuesday, with some products falling 35 percent in price.
Carrefour hypermarkets have launched a similar price offensive, cutting the price of some 300 products.
In response, rivals Delhaize and Colruyt decided to review their prices and both are expected to respond with price cuts also.
However, it is not yet certain whether a price war has been sparked. Delhaize stressed that it continually adjusts its prices, Flemish commercial broadcaster VTM reported.
Flemish consumer magazine Test-Aankoop said Carrefour and GB are trying to close the price gap with Colruyt. It means the gap between more up-market Delhaize is widening.
Consumers profit initially from price wars, but reduced industry revenue could lead to job cuts. A recent price war in the Netherlands has led to widespread industry concerns.
[Copyright Expatica News 2005]
Subject: Belgian news