Belgian market leader Colruyt has reevaluated its discount indication policy, as consumers are becoming ever more sensitive to promotions. The famous ‘red prices’ once again indicate a reactions to competitors’ discounts.
Commercial finetuning
The discounter once again explicitly mentions “Response promotion competitor”, with the typical red colour, even though the retailer changed course only two years ago. Two years ago, Colruyt had decided to take a more subtle approach by making its “reaction” labels white-and-black. At the same time, it reserved red for its own promotions only. In this way, the chain wanted to steer attention somewhat away from price comparisons, especially when prices everywhere were skyrocketing in the full inflation crisis then.
However, CEO Stefan Goethaert has now told Belgian newspaper De Tijd that “customers’ sensitivity to promotions has increased“. That is why the chain is returning to the red shelf labels to indicate promotions. Also, the discounted price is now displayed larger, with the discount percentage smaller underneath.
While these changes may be small in themselves, they all fit into the broader commercial adjustment. Since this spring, for example, Colruyt also uses the term “free” (or promotions of the “1+1 free” genre) in response to competitors’ advertising. The shops also feature more displays and other manufacturers’ commercials.
