Albert Heijn, the Dutch supermarket chain owned by parent company Ahold, announced today (20 January) that it will cut prices in an attempt to win more custom in the highly competitive Dutch marketplace.
“We will be lowering thousands of prices as of Monday in out tenth round of price cuts,” company spokesperson Josa Mes told just-food.
Albert Heijn has lowered 16,000 prices on 8,000 products since 2003, in an on-going supermarket price war. And it appears that this tactic is working.
“The JFK market research institute, based in the Netherlands, has conducted research showing that our price image has gone up while our quality perception has remained at the same high level,” Mes said.
The supermarket chain claims that in the last year it has attracted 300,000 new customers and that sales have increased by 5.1%. However, when asked what the impact of price cuts on profit margins has been, the company declined to comment.