In order to ensure its customers get the lowest prices every day, the distributor compares prices of around 6,000 products with those of identical or comparable quality products sold by its competitors. If a product is cheaper elsewhere, Colruyt will immediately reduce its price to match it, which then becomes a "Red Price".
Red or black – always the best price
At Colruyt, prices are separated into two categories: Red Prices and black prices. Red Prices refer to reduced prices, for example, when price-matching against another store. Black prices are standard prices and therefore automatically the best prices available in the region.
Every day, Colruyt analyses prices and promotions at competing stores. If these are present nationwide and therefore apply the same price to the whole of Luxembourg, Colruyt’s prices will be aligned at national level as a result. For other stores, the distributor separates these by region, lowering prices in Colruyt stores located near the competitor in question.
This procedure is determined by the origin of customers and the circumstances of the promotion at the competing store, among other factors. For this reason, prices may sometimes differ from one Colruyt store to another.
Comparing what is comparable
Colruyt’s policy is to compare items which are either identical or similar, while respecting the products at brand level. With this in mind, the company does not compare national or international brands with own-brand products. The same applies for measurements – for example, in cases where the price is calculated per dose, litre, or kilo.
A team of six specialists is engaged in checking leaflets from competing stores on a daily basis to ensure that Colruyt’s customers can benefit from all promotions. Prices are reduced when necessary, and products which have been subjected to price-matching are marked as such in stores. This saves customers the trouble of comparing different promotions among their local supermarkets, as Colruyt does it for them.
Action ? Reaction !
Customers are able to contact Customer Services via an online form or by telephone on 26 32 27 29, if they have seen lower prices elsewhere and wish to query them. Colruyt’s price-matching guarantee will enable the business to immediately adjust its prices and furthermore, the difference can be refunded if a customer has already purchased the product from a competitor.
Once a price has been amended in the database, it is immediately updated in stores using electronic price tags. This method allows the company to react to last-minute reductions by competing brands.
Although Colruyt endeavours to react to competitors’ prices, not all are systematically updated. For example, the distributor cannot align with online prices or promotions which require the customer to save.
Optimal cost management
Colruyt keeps costs as low as possible while optimising its resources, which allows the store to guarantee the lowest prices in all circumstances. Trolleys without coin slots, LED lighting, simple store layours, sealed freezers, and sturdy, easy-clean floors are just a few examples of Colruyt’s efficient business management.
The electronic price tags also save time and money, enabling employees to work more efficiently, and significantly reducing paper and transport costs previously incurred by the use of labels. The electronic labels are also energy efficient as they only use electricity when a price is updated.
Controlling costs in this manner allows Colruyt to control their prices and pass the best savings on to their customers, no matter the circumstances.
