The topic has been brewing at Colruyt Group for some time, as CEO Jef Colruyt approached the symbolic age of 63: who would succeed him? A theme that has made it to the top of the agenda because of a big story in the Belgian newspaper De Tijd, in which people speculated about potential successors.
63 years as unofficial retirement age
Strictly speaking, Jef Colryt is not yet past his sell-by date as chairman and CEO of one of Belgium’s largest supermarket groups. But there is an unwritten rule that high-ranking people in the company retire at 63 to make way for younger managers. And it just so happens that Jef Colruyt has reached this magical, albeit unofficial, retirement age.
Jef Colruyt himself has always been somewhat mysterious regarding his succession. Yes, there is a plan, even a plan B and C. No, his potential successor has not yet been informed. And he did not in any way want to give a precise time frame. “I am not spilling the beans”, he told inquisitive journalists recently.
Many potential successors
And so, this weekend, Belgian newspaper De Tijd went out to look for the beans themselves. But that did not provide much clarity for the simple reason that there are a lot of potential successors in the company’s own ranks, without taking into account any exceptional talent that might be found outside the company.
From the recently recruited director Dirk Van den Berghe (ex-Delhaize and Walmart) to internal top players such as Jo Wilemyns, Stefaan Vandamme and Stefan Goethaert to family members such as Griet Aerts and Jef’s eldest daughter Lisa: Colruyt could go in many directions.
On the one hand, that is a good thing: a choice could be made depending on the company’s needs, rather than appointing someone due to a lack of alternatives. But the other side of the coin is that it makes the company’s near future look somewhat uncertain.
Industry and business model under pressure
This uncertainty is not convenient at a time when the industry is under heavy pressure due to rising prices at suppliers and when Colruyt needs to find a new impulse. It is not that the group is in bad shape, but it is clear that the success model of the past decades, based on the lowest price guarantee, is no longer future-proof.
The reasons are obvious. The competition is fierce, with newcomers such as Albert Heijn and Jumbo putting heavy pressure on the lowest price model with their hefty promotional campaigns. Also, in the realm of e-commerce, choices have to be made: will Colruyt still venture into the field of (expensive) home deliveries, and which lowest price guarantee is the right one on the worldwide web? And, should the retailer adjust its store model, now that it became apparent during the Covid crisis that local and city stores are better equipped to serve the current needs of society?
Does Jef Colruyt still have undertakings to do before he hands over the reins? We cannot look inside his head. But the issue of his succession is now at the top of the agenda.
