A Day of Grocery Stores

Friday, May 26, 2006

To begin the day we rose at 7:00 AM to get breakfast and board the bus to
Colruyt, a large supermarket discounter in Belgium.  Colruyt is a
“hard” discounter, similar to Aldi in the US and also in Europe. Inside
the 30,000 sq meter distribution facility in Halle, Belgium (an hour’s
ride from Gent) we began with a presentation about Colruyt. We learned
how they have grown from a small traditional grocery store to a
thriving multi-national company with many subsidiaries, each doing a
large business apart from Colruyt retail business.  Our first
indication of how Colruyt has utilized technology to revolutionize the
grocery store industry came before we even started the tour.  We
received small wireless headsets to hear our tour guide as we walked
through the plant.  Walking through the plant, we noticed several other
distinguishing characteristics. Unlike many grocery store distribution
centers within the US, crates were washed automatically, fdresh fruit
was packaged, and cheese was prepared all within the distribution
facility.  Being a low price leader, Colruyt maintains efficiency and
ensures that little is wasted. When trucks return to the plant, crates
and recyclables are removed.  Organic waste is composted, with plastics
and paper going into their respective recyclers for further
processing.  Carbon dioxide, a byproduct of the fertilizer industry, is
recycled by using it for cooling food.  To decrease energy costs, a
large windmill is located just outside the plant door with the
capability of supplying 25% of the plant’s power consumption.

After the tour of the facility, we followed the product to the store.  Inside
the store, the bright orange checkout racks first grabbed our
attention.  Also, rather than conveyor belts and cashiers, checkers
with scanners checked out each customer’s purchases directly into
another cart from their original cart.  We reached the wine section
first where many of the bottles were still in their boxes to reduce the
expensive cost of labor.  The freezer section was isolated from the
rest of the store and lined by chest freezers, which held pictures of
their contents.  The fresh food section is stocked daily and kept in a
cold room separate from the rest of the store.  Orange crates are used
both functionally to hold the product and for the display of cheeses. 
Though Colruyt is extremely cost-conscience, human resource management
was not hurt. Every employee was greeted with a handshake and greeting
by the top manager leading us around the store.

Following the Colruyt experience, we got back on the bus to head to see its
competitors, Carrefour and Delhaize grocery stores.  Carrefour is one
of the largest hypermarkets in Europe and has many establishments
within the store. In the store, the group enjoyed a wide variety of
food types from the buffet-style cafeteria.  When we arrived back at
the bus, Professor Gow explained to us how he had found seven different
types of private label “generic or store brand” strawberry jams inside
the supermarket.  All we could think about was a nice piece off toast.

Dodging raindrops after the supermarkets excursion, we decided that it would be
best to head to the hotel in Brussels and hope for the rain to cease.
The remainder of the evening was spent exploring Brussels, shopping,
eating, sleeping, packing, swimming, and just relaxing. It is hard to
believe that we only have two days left of our European adventure.

Cheers!

The Group

Posted by IBIP Administrator