solid quarterly results last week, the board of Belgium's largest retail chain Delhaize is looking to cut costs in its home market.Delhaize Group reported that its net profit rose 57.6% in Q1 thanks largely to exceptional charges.
However, its core profit came in slightly below expectations as a strong sales performance in the US was undermined by a slowdown in its Belgian operations.
In its home market, the group cited tough competition as same store sales fell 0.8% during a period when a 0.6% growth was expected by analysts.
Two workers' unions in Belgium have reportedly been told that 20 Delhaize supermarkets have been trading at a loss, and the board will soon act to try and rectify this.
Delhaize Belgium refused to be drawn out on the unions' worries, but a spokesperson for the company confirmed to Belga news agency that the group is constantly engaged in reviewing the company in terms of cost-effectiveness.
"This is part of an ongoing focus to adapt to the rapidly changing environment us," the spokesperson said.
Unions are hoping that a line of communication is opened up with the Delhaize board, in order to prevent job losses. "We are not talking yet about a company in trouble here. We're not in a Carrefour scenario," a union official said, referring to the fact that the French retailer has closed seven supermarkets in Belgium over the past few years, affecting 1,600 jobs.
