Colruyt Group SWOT and PESTLE Analysis

Strength

1. Believes in sustainability and actively involved in green energy initiatives: Colruyt is committed to using non-fossil fuels to meet its electricity requirements. It currently meets 44% of its requirements using non-fossil fuels and aims to ramp it up to 60%. Due to their investment in solar and wind energy they have been reducing their carbon emission year-on-year in absolute terms. Bio-Planet, Okay, and Colruyt stores make use of natural coolers such as propane and CO2. They also have a heat recovery system whereby they use the heat extracted from this mechanism to heat the shop. Many stores further have LED lights and automatic lights that switch off. This helps to consciously use energy. The mission to switch to conserve energy has been difficult to achieve due to the rising demand for automation and fresh and chilled products. The company had undertaken a mission to reduce energy consumption by 14% taking the base year as 2009. The organization also tries to curb emissions during the delivery of the products. Delivery during off-peak hours is a strategy that they have adopted. However, due to restrictions imposed on delivering during night time they haven’t been able to maximize their vision. They are testing emission-free vehicles and tractors to incorporate them into their delivery chain

2. Provides customers organic produce through Bio-Planet: Bio-Planet continues to be the leading segment in providing organic produce to customers at affordable prices. The prices of about 500 products were recently reduced to make the section more pocket-friendly. They not only sell organic and healthy food through retail outlets but also deliver them through online purchases. Bio-Planet promotes healthy eating through the slogan ‘Truly good’. The customers considered these outlets as their trusted outlets to order form during the covid crisis. To amplify and showcase their commitment towards sustainability Bio-planet stores make use of eco-friendly materials in the store. The staff at these outlets are advised to carefully assist the customers. The shopping basket fell a little during the last fiscal year, the main reason being a drop in product prices. With the growth of the demand for organic food, several organic food stores have sprung up but only Bio-Planet outlets have a range of more than 6000 organic products. To ensure more and more customers are aware of the benefits of organic food the outlets aim to educate the customers about organic food. Colruyt aims to reach fifty Bio- Planet outlets in Belgium. Even the greenery around these outlets is pesticide-free and natural hand techniques are used. The stores have a heat recovery system which helps to heat the outlets.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

1. Customers are increasingly looking for convenience and attractive discount: Recent trends show that the customers are simply not satisfied by buying groceries online but also looking for offers to supplement their purchase. Studies show that discounts are what customers buy more online. Collect&Go is Colruyt’s online service platform. It recently expanded into the online sector and promised to not only provide the lowest prices offline but also online. Earlier online delivery was only available through foreign sites, hence this a new sector. Amazon was the other big player in the online market segment and Collect& Go aims to provide better offers than Amazon. However, this cut-throat competition is difficult to keep up with. Several constant changes need to be done to the prices to grab the customer’s attention. By offering promotional discounts online there is a shift from demand in stores to online shopping which is not beneficial for the regular working of the stores. But, to compete with online sites like Amazon, Veepee, bol.com this was a much-needed initiative. Presently the website provides a limited offer to each customer. There is a cap that has been established so as to ensure maximum people can take advantage of these deals and gain trust in the operations of the website.

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Technological

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Legal

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Environmental

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