Vomar and Dirk lower prices: is there another supermarket war lurking?

Vomar and Dirk lower prices: is there another supermarket war lurking?
Vomar and Dirk lower prices: is there another supermarket war lurking?

Dirk recently announced that he would freeze ‘more than a hundred’ products until ‘at least until the end of the year’. Vomar previously announced that it will not increase the prices of fresh bread from its own bakery in 2022.

Minke van Kuijen, who blogs about bargain hunting under the name Gierig Gerda, notices that more expensive supermarkets such as Albert Heijn are also stunting prices. “They are really on top of that. They have been promoting extra in recent weeks,” she tells EditieNL.

Has a price war quietly begun? Retail expert Laurens Sloot does not dare to say. “It would be logical if other supermarkets also react to this, but I don’t see a war happening so quickly. In the price war between 2003 and 2006 you saw that one supermarket suddenly lowered prices by ten percent. I can’t see that now “Because prices are still going up. Most supermarkets make a profit of two to three percent, so there is little room to lower sales prices.”

Moreover, the producers suffer from sharp price reductions, which can also have a negative effect on the supermarkets. “What good is it to a supermarket if the baker who supplies thirty percent of the bread goes bankrupt?”

Price development

Foods are currently nearly 11 percent more on the shelf than around this time last year, with butter, margarine, oil, deep-frying fat and processed meat as the highest risers. The products that rose the least are chewing gum, spirits and legumes.

Source: RaboResearch

According to Sloot, it is not entirely coincidental that Vomar and Dirk are now – in times of inflation – lowering their sales prices. “They are a kind of discounters; logical that they look more closely at how they can bind the customer.” The current approach fits that formula. “But there is also a kind of awareness that people are presented with high energy bills in the autumn. So these chains are also looking: what can we do now so that the consumer still buys our products?”

In any case, ‘Stingy Gerda’ still notices the price increases considerably in her wallet. “The crème frache had suddenly gone from 69 cents to 1 euro recently. The cream cheese and margerine have also become expensive.” That happens gradually. “Each time with about 10 cents. But in the end you are 30 cents further.”

Although various supermarkets are selling their offers, according to the blogger, those offers are becoming less and less good. “The discounts are less high and the promotions less attractive. You also notice that somewhat more expensive supermarkets such as Albert Heijn are mainly promoting their price favorites.”

She recommends always looking at the store that is most advantageous for you. “Don’t focus on the store that says it is the cheapest, but compare the products on your receipt, preferably per litre, kilo or piece. It takes a bit of research, but you can save with that.”

The article is in Dutch

Tags: Vomar Dirk prices supermarket war lurking

NEXT NEIGHBORHOOD REPORTING. Along the F11 bicycle highway between Antwerp and Lier: “It’s quite a social event here” (Deurne)