Delhaize price offensive: what it means for you?
How suppliers can benefit from collaborating with Delhaize's price initiative
With sales flat and competition from discounters Colruyt, Aldi and Lidl still very real, Delhaize announced to lower prices across a wide range of categories. Suppliers can benefit if they understand retail switching, price and promo elasticity and identify brands and products most effective to make shoppers switch away from discounters.
Influence the pricing decision
Avoid general price decreases - and margin erosion - by analysing which products are price elastic and which ones are not. If done wrongly, price decreases may lead to lower sales in euro and no market share gains for the retailer.
Work with Accuris to know for which products a price change should be proposed and for which products promotions are the best sales driver.
Which brands generate retail switching to Delhaize?
Market-leading brands typically generate more retail switching than Challenger brands. And Delhaize will need to be highly selective to identify the SKUs that make shoppers switch or make them perceive the price image of the retailer differently.
Accuris uses detailed sales data to identify which brands and products generate retail switching in your category. This is key information you can expect your Delhaize buyer to receive from you!
Influence the promotional strategy
Suppliers generally have in-depth knowledge on which packs need to be promoted in order to grow category value. This is valuable information Delhaize needs to build into their promotional strategy.
Accuris acts as the third party managing confidential data and ensuring a fact-based analysis. We will work with you and with Delhaize to create an optimised pricing and promotion plan for the entire category, reflecting your objectives and Delhaize's.
What is good for Delhaize is good for you
For most of our clients, Delhaize is a more profitable customer than the discounters. Margins are often better, and the product mix certainly is. Branded manufacturers typically sell more of the higher-margin products at Delhaize than at Colruyt or the hard discounters.
Send an email to ask for more information on how we can support you in your collaboration with Delhaize
Understanding price elasticity and promotional elasticity gives insight in the revenue potential of a product