“We’re not looking to dethrone Cactus,” said Nicolas Gueuzurian, the 34-year-old director of Delhaize Luxembourg, who took up his post in April. Originally from Aubagne in the south of France, he formerly worked as marketing and e-commerce manager at Auchan Luxembourg.
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How would you sum up your first six months as national manager?
What has impressed me most is the commitment shown by our teams. I felt a real pride in belonging to Delhaize. But also a genuine passion on their part for our products. Our employees know the ranges and like to test them and help others discover them. And our territorial coverage is impressive. We are present from north to south, from east to west, with almost complete coverage of the country, which means we can respond to practically every resident. This proximity is a real asset.
Our mixed model allows us to invest more quickly, via Delhaize’s own funds, but also via those of our affiliates.
Nicolas Gueuzurian
How many outlets does Delhaize have today?
We have 65, divided between 13 integrated shops [managed directly by Delhaize] and 52 affiliated shops [franchises]. The latter are managed by a total of 26 independent entrepreneurs. This should make us the largest entrepreneurial ecosystem in Luxembourg. We operate in three formats: supermarkets (we have 11), Proxy (our 28 neighbourhood shops) and Shop & Go (26 shops in high-traffic areas).
Why have you maintained the mixed integrated-franchised model, while Delhaize Belgium has gone 100% affiliated?
Delhaize Group is present in many countries, with each entity having its own strategy. In Belgium, the context has led the Delhaize brand to opt for this solution. But elsewhere in the group, such as Albert Heijn (present in the Netherlands and Flanders), they have opted instead for a mixed integrated-affiliated model. So everyone adopts the formula that suits them best.
In Luxembourg, our mixed model allows us to invest more quickly, as we can do so using both Delhaize’s own funds and those of our affiliates. It’s a real lever for development.
“Even between close neighbours like Luxembourg and Belgium, there are real market differences.” © Photo credit: Gerry Huberty
What distinguishes the Luxembourg market from others, such as Belgium, for example?
I can identify two main elements. Firstly, the structural model is not the same. Here, the landscape is extremely fragmented, with a wide range of brands and formats: hypermarkets – which are still doing very well – supermarkets, convenience stores and even petrol stations where people can do their shopping – which is rare elsewhere.
Secondly, we live in a very multicultural country, where there are around 180 different nationalities and where almost 50% of the population is foreign. This implies a very specific product culture, quite different from that found in Belgium or France.
Even between close neighbours like Luxembourg and Belgium, there are real market differences. This has a major influence on consumer habits, and means that you need to adapt your strategy to take account of these specific characteristics. All the while maintaining a clear objective: to be the benchmark in our own territory. This is what we are today in Luxembourg, where Delhaize occupies second place in the market.
Rather than developing new product categories, we prefer to focus on our promise to customers: food
Nicolas Gueuzurian
So you see yourself as number two, behind the historic leader Cactus. Is it your ambition to dethrone them?
We’re number two thanks to a very strong presence in terms of the number of points of sale. In that respect, we may be one or two units behind Cactus at the moment, but the figures are changing all the time.
To answer your question, we’re not looking to dethrone Cactus. What counts for us is not so much to be number one in terms of volume or sales, but to be the preferred brand of Luxembourgers and cross-border commuters. When a customer has a choice between several brands, we want them to choose Delhaize.
I welcome the arrival of more competition
Nicolas Gueuzurian
Cactus boss looks to the future as new hypermarket gets set to open
Cactus is opening a new 7,500-square-metre hypermarket next week. How do you see this?
I don’t see anything surprising in that. Shop formats are complementary, even if their objectives are different. Take our supermarkets, which range in size from 2,000 to 3,000 square metres, the largest at Pommerloch: the shopping circuit is fairly short, with a limited number of product categories. If you go to a hypermarket like Cactus, Auchan or Leclerc, which can be as large as 15,000 square metres, you’ll find categories that we don’t work on very much, if at all: textiles, DIY, etc. But the shopping route will be longer, so you’ll spend more time there.
At Delhaize, rather than developing these categories, we prefer to concentrate our investments on what constitutes the promise we make to our customers: food. Our mission is “eating better”.
Our first priority will therefore be to establish ourselves in new residential or business areas that are booming
Nicolas Gueuzurian
To come back to your question, I welcome the arrival of more competition.
Isn’t that strange? In general, don’t companies prefer less competition?
Yes, but when you’re alone, you don’t improve. And customers can’t compare. Nowadays, we know that customers all shop in different stores. So, in my view, more competition means more opportunity to highlight your difference.
E-commerce? Never say never. If we see enough demand, we’ll be able to meet it
Nicolas Gueuzurian
At Auchan, you were responsible for e-commerce. An area where Delhaize is hardly present. Have you been hired to change that?
My role, above all, is to ensure that the company stays in step with market developments and, above all, consumer expectations. In Belgium, Delhaize has developed solutions such as Collect & Go and home delivery. In Luxembourg, we have chosen to concentrate our efforts on physical development for the time being. We are a local brand, and we want to remain so. Our first priority will be to keep pace with the country’s demographic growth by establishing ourselves in the new residential and business areas that are booming.
After that, you should never say never. Digital technology is an integral part of changing consumer habits. If we see sufficient demand, we’ll be able to meet it. We are fortunate to belong to a group that has mastered these tools perfectly in other countries. So we have the resources to do it when the time comes.
We’re an SME and, as a small company, we can’t do everything
Nicolas Gueuzurian
So you’re not developing e-commerce because you don’t see the need to do so today?
It’s also a strategic choice. We’re an SME and, as a small company, we can’t do everything.
Do you really see Delhaize Luxembourg, with its 65 stores, as a “Small or Medium-sized Enterprise”?
Yes, even though we belong to a large group. In Luxembourg, we have around 700 integrated employees. That puts us outside the top 50 of the country’s biggest employers. If you add our affiliates, that takes us up to around 1,400 employees and we’re barely in the top 30. I think we’re still a company on a human scale. To tell you the truth, our central service, which manages the entire network of 65 shops, has just 25 people. [Gueuzurian is employing artistic licence, as under EU definitions, an SME must have fewer than 250 employees and a turnover under €50 million.]
“We need to let as many people as possible know that they can come and shop at Delhaize.” © Photo credit: Gerry Huberty
Apart from opening new points of sale, what are Delhaize’s other ambitions?
I can think of three. The first concerns our offer. Delhaize is first and foremost a grocer. So we have to offer products that are adapted to all the communities we serve.
Secondly, we have to let as many people as possible know that they can come and shop at Delhaize. That means publicising our commitments. For example, our P’tits Lions range, our very competitively priced products, which stand up to comparison with discounters.
Then there’s another area that I’ve already developed: becoming the preferred brand for residents and cross-border commuters.
It’s not that we do more product recalls than the others, it’s that we communicate them more
Nicolas Gueuzurian
Any new openings in the pipeline?
We’re working on it, but I have nothing to announce at the moment.
Delhaize is often cited as the chain that carries out the most product recalls. Why is that?
It’s not that we’re doing more, it’s that we’re communicating them more. We pay a lot of attention to this, as we are very strict about our quality processes. We want to be transparent and create a relationship of trust with our customers. Even for minor problems, such as an incorrectly printed date, we prefer to let them know.
To be honest, I don’t know whether this model of a shop without tills or staff will ever come to us
Nicolas Gueuzurian
Given your image as a local shop, what do you think of concepts like Amazon Go, these shops without checkouts or staff? Is this one of the next steps?
To be honest, I don’t know whether this model will come to us one day. What gives Delhaize this image of proximity is also the customer relationship. This is essential. There are automatic checkouts, but we keep the traditional ones, with staff. We try to have a good mix. And even at the machines, there’s always someone there to help.
If you look at what’s happening in-store, manual checkouts are still the most widely used
Nicolas Gueuzurian
All-automation may work in big cities, but here in Luxembourg, consumers are still attached to exchanges and proximity. If we look at what happens in-store, manual checkouts are still the most popular. It’s the customers who decide and, for the moment, they prefer human contact. If one day we see a real change in habits, we might adapt our shops. But that’s not the case today.
Cactus has its “vending container box” concept in Luxembourg, these automatic shops with no sales assistant.
Where have they launched them? In high-traffic areas such as railway stations. Because they meet a very specific need, in places where people don’t have the time. We, too, have formats adapted to this type of fast consumption, such as Shop & Go. But a fully automated shop is not in our immediate plans.
(This article was published by Virgule. Machine translated, with editing and adaptation by Alex Stevensson.)
