Price war plunges Laurus into red
4 March 2005, AMSTERDAM — Dutch-French supermarket company Laurus reported on Friday a loss of EUR 128 million last year compared with a profit of EUR 9 million in 2003.
4 March 2005
AMSTERDAM — Dutch-French supermarket company Laurus reported on Friday a loss of EUR 128 million last year compared with a profit of EUR 9 million in 2003.
Owner of the Edah, Konmar and Super de Boer supermarkets, Laurus also said that turnover fell last year by EUR 600 million to EUR 3.5 billion.
Laurus is suffering from the price war that Albert Heijn (AH) — a subsidiary of Dutch retailer Ahold — launched at the end of 2003. Other supermarket chains have also been forced to slash prices on many items as AH resolutely continued its price-cut policy last year.
Laurus supermarkets followed suit, but fewer customers bought their groceries at its Edah, Konmar and Super de Boer stores.
The combined market share of Laurus fell from 18.3 percent in 2003 to 16.4 percent last year, news service NOS reported.
Laurus is trying to stem the tide by trying different supermarket formats and will heavily invest in coming years to win back its market share.
It will also up the price war ante, with Edah reducing on Monday 250 products in price by one to 5 percent. Edah will market itself in future as a price-fighter.
Due to the duration and intensity of the price war, Laurus refused to issue a profit forecast for 2005. And it is not yet certain if the new formats will meet with success.
[Copyright Expatica News 2005]
Subject: Dutch news