Ahold Delhaize has been criticised in the Dutch media, and specifically by the newspaper De Volkskrant, for how it uses its dominant market position. Without being able to present any hard evidence, the newspaper argues that Ahold Delhaize is “pushing the boundaries” in this regard. The supermarket group calls this an “inaccurate picture” but now faces a perception crisis.
Saskia Egas Reparaz plays key role
De Volkskrant puts together its puzzle based on several individual cases. One of the main stories surrounds the transfer of Etos director Saskia Egas Reparaz to Hema. The transfer was initially thwarted by Ahold Delhaize’s top management on the basis of a non-compete clause in Egas Reparaz’ contract. In the end, all parties reached a compromise enabling Egas Reparaz to start at Hema in June.
De Volkskrant contextualises this case in a broader context. Hema is partly owned by Jumbo, one of Ahold Delhaize’s major competitors. The newspaper recounts how Ahold Delhaize only dropped out of the race to take over Hema at a very late stage – with Egas Reparaz reportedly already being considered internally as the person to run Hema. The fact that Jumbo ultimately won Hema would have increased the awareness at Ahold Delhaize that the fast-growing Jumbo is a fierce competitor that had to be stopped.
Everyone has an iron hand
Another story that De Volkskrant quotes as an example of the brutal way in which Ahold Delhaize asserts its market dominance, revolves around one of its suppliers. It has to do with the Dutch spice manufacturer Euroma, which is at risk of being dropped from Albert Heijn’s assortment. The Volkskrant links this to Euroma’s owner: the investment fund Parcom owns the other half of Hema. Once again, the image that is painted of Ahold Delhaize is one where the top management, in its settlement of the missed deal, is not concerned about any “collateral damage”.
Nowhere does De Volkskrant substantiate that Ahold Delhaize is formally overstepping the mark. The newspaper quotes retail expert Rupert Parker Brady, among others, who point out that everyone in the industry has an iron hand – but that Ahold Delhaize is willing to go a bit further because of its market position and “pushes the boundaries”. Other examples, such as new contract terms for suppliers, are also considered by industry specialists to be – and we are paraphrasing here – justifiable but on the harsh side.
No hard evidence
It is difficult to say whether De Volkskrant is correctly linking the various incidents. The newspaper certainly made its homework and mentions “conversations with over twenty people” who wish to remain anonymous because they do not want to risk their relationship with Ahold Delhaize. That makes it difficult to verify a few things.
The newspaper also quotes the response of Ahold Delhaize itself at the end of the article. The latter says it “finds it unjust that these messages are tied together like this, and that this paints an inaccurate picture”.
The question now is whether and how Ahold Delhaize can turn that image around. Let it be clear: Ahold Delhaize is not a charity, and there is nothing wrong with using a dominant market position to your advantage. However, the game must be fair play, but at the moment, there is no hard evidence of an abuse of power.
