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400 candidates come forward to take over Delhaize stores

14:22 01/07/2023

More than 400 people have offered to buy Delhaize’s self-governed supermarkets, the company has announced, after another meeting called to resolve the ongoing dispute ended badly.

Delhaize management said there was at least one candidate for each of the self-managed shops it wants to franchise, and at least two for 90% of them.

The situation remains fraught for Delhaize workers and bosses, with several of the supermarket's stores in Brussels closed again due to strike action this week.

Talks stalled again at the last works council, when union delegates walked out saying that bosses had been adding fuel to the flames.

“The impasse is complete,” liberal trade union ACLVB’s Wilson Wellens confirmed, although not present at the meeting himself.

Wellens said that strikes and vandalism were on the rise again. “The best thing now is for the employment ministry to intervene from above. It is very competent and has followed the Delhaize dossier closely.”

According to Belgian finance newspaper L'Echo, Delhaize plans to franchise eight shops a week. This would mean that all branches would be franchised by the beginning of next year.

But Roel Dekelver, Delhaize spokesperson, denies that this proposal was discussed at the works council meeting, saying it focused instead on the company’s future plans and accompanying measures.

Meanwhile, Delhaize guaranteed in a statement it would not close any of its shops until a buyer is found, and at least not until the end of 2028.

The supermarket chain also assured that there would be “written confirmation of the maintenance of all salary and working conditions for in-store employees, signed by Delhaize and the future independent buyer” after the takeover.

Employees on time credit - a form of career break where workers can put their job on hold for up to one year, full or part-time and not necessarily all at once - would keep this benefit as Delhaize would make up the difference financially.

The management also promised employees a bonus of €1,500 gross, “to reward our shop workers for their continuous commitment to provide quality service to our customers.”

The bonus will be increased by €100 per year of seniority. Any Delhaize headquarters employees who lose their jobs will receive “an improved severance bonus proposal”, the firm added.

Delhaize first announced its intention in March to convert its 128 self-managed supermarkets into independent stores. It argued that this project would reinforce the famous supermarket’s position on the competitive Belgian market.

Today there are already 636 independent shops under the AD Delhaize, Proxy Delhaize and Shop & Go brands. The aim of the change is to manage all the supermarkets in the same way, to stimulate growth of the remaining 128 stores.

Independent stores notably open on Sundays and have longer hours. But Delhaize argues that the franchise model is “the only way to continue investing in a sustainable future”.

The company affirmed in March that there would be no impact on employment, as all staff would be transferred to the new independent operators. However, Delhaize staff thought differently, and a wave of strikes and demonstrations began.

Written by Liz Newmark