In the competition with Amazon, there is no room for arrogance, Ahold Delhaize CEO Frans Muller said. His company’s web shop Bol is the online market leader in the Benelux region and has strong local roots there, but must remain vigilant.
Strong sales growth
Amazon plans to invest billions in the coming years to strengthen its logistics in both Belgium and the Netherlands, and to attract more sales partners. The intention seems clear: the American giant wants to become the market leader in the only two Western European countries where it has not yet succeeded in doing so, as Bol is holding its own.
Does that worry Muller? The results are excellent for now, with another sales growth of 8.4 % in the third quarter. “Our market share with Bol is still growing, and sales are growing about twice as fast as the market as a whole”, he told Dutch newspaper NRC. However, he also sounds cautious: “We have to be alert to what we have to offer customers and what we can offer our sales partners. There is zero time for any arrogance in this competitive market.”
Remaining competitive
According to the CEO, Bol’s local roots are an asset: the company knows the Dutch and Belgian markets extremely well. “Customers appreciate Bol’s service. And we have become more competitive with our prices.”
But the online store has to stand on its own two feet, he says: “Bol is an independent company and is independently responsible for its profit and loss accounts and for investments. This applies to all our brands, and we believe it is the healthiest way to make agreements with management. Like any other company, Bol has to do things that are important to be, become, and remain competitive.”
