Blokker Belgium becomes Mega World and changes business strategy

This is a relief for the unions, who feared the closure of many stores in Belgium, or even the departure of Blokker from the country. The new owner has no retail experience.

When the big boss and owner of a company travels to attend an extraordinary company council, it is often that time is serious. Michiel Witteveen, the Dutch owner of Blokker, however, made this Tuesday to the Belgian unions a less catastrophic announcement than expected, since a scenario of store closures, or even a total withdrawal from Belgium, was feared.

The 123 Blokker stores in Belgium and Luxembourg are sold to Dutch Retail Groep for an undisclosed amount. They will change their name and be called Mega World. The commercial strategy will also be adapted to the discount formula. No store will close.

Here is the logo of the new brand

"Over the past five years, the turnover and results of the Blokker stores in Belgium and Luxembourg have been put under pressure by a particularly difficult market environment. Despite numerous measures and initiatives, we are not failed to reverse this trend. Due to the losses incurred, it was not possible to continue down this path without taking drastic measures. The acquisition of our points of sale by Dutch Retail Groep and their conversion to the discount Mega World will offer the multiple benefits of continuity, both to the stores and to their employees. Following the sale of Blokker Belgium, the management of Blokker Nederland will be able to focus exclusively on optimizing the Blokker brand in the Netherlands." , commented Michiel Witteveen in a press release.

"I am convinced that the discount formula has a great future in Belgium, and I am delighted to collaborate with the Blokker Belgium team. No store will close its doors and I am sure that this new formula will will ensure the development and profitability of this business," said Dirk Bron, director of Dutch Retail Groep.

Mega Worlds will open in May

"The transfer to Dutch Retail Groep is taking place today but the official opening of the Mega Worlds is scheduled for May. The employment and salary conditions of the staff are guaranteed for one year", specifies Anne-Marie Dierckx, permanent CNE. No job losses, therefore, and a one-shot renovation of the 123 Belgian and Luxembourg stores. Four different store surfaces will coexist under the new banner.

"We were told of a target of 200 million euros in turnover over five years, without further details. We were also told that given the 26 million losses for the year last, it was either this solution, or go to the disaster", specifies the trade unionist who had the impression that the new strong man, Dirk Bron, was particularly in a hurry. "The grand opening will officially take place in May, but the name Mega World will already appear before that, very quickly."

The permanent Setca, Christophe Bouvier, provides additional information. "The new owner told us that they have made agreements with brands like Nike, Reebok, Philips to sell their products. They will be bought in batches, at low prices. We are talking about selling t-shirts, socks, boxers, bicycles, household appliances. In any case, more decorative items on the shelves. It makes you think of an outlet formula."

"We do not have the amount of the transaction but we were told that Dirk Bron initially wanted to buy only 65 Blokker stores and then an agreement on all the stores was concluded", indicates Christophe Bouvier.

The new owner does not believe in online sales

Like her counterparts, CGSLB permanent Vicky Hendrick says she is "relieved" by this announcement. But she wonders about the profile of the new owner Dirk Bron, who is getting into retail, a sector in difficulty. "His group has no structure, which implies that he will probably go through intermediaries to manage the stores. Dirk Bron says he is confident of managing to raise the bar within six months. He let us know that "He did not believe in the concept of online sales. However, there should be the possibility of making purchases via the Internet in Mega Worlds but orders will have to be collected in store."

In 2006, Dirk Bron, who had owned the Aktiesport stores, purchased fifteen Belgian Superconfex clothing stores, a sign that has since disappeared.

At the end of December, Michiel Witteveen declared in a Dutch daily that "Belgium is a problem". Of the 119 Belgian stores, only 6 are in fact profitable. Blokker's financial losses for years are considerable and chronic. Those of 2019 amount to 26 million euros.

In 2017, Blokker closed 63 stores in Belgium. A strategy aimed at relaunching the brand, with new products on the shelves and a small makeover of the stores, had been tested, with success it seems, in the Louvain region. But it had not been implemented in the other Belgian Blokkers.