Jumbo Boosted By New Store Openings, Despite Foodservice Decline

Dutch retailer Jumbo is looking ahead to its 100th anniversary this year with renewed optimism, after the group posted a 15% increase in consumer turnover in full year 2020, to €9.68 billion.

Organic sales growth across its store portfolio stood at 11% for the year (or +9% if adjusted for week 53), with new store openings helping to lift its performance.

The group opened 15 additional outlets during the year, mainly at inner-city locations in the Netherlands, with five of these opening in Belgium.

Market Share

This boosted the group's market share in the Netherlands to more than 21.5%, with Jumbo now operating a total of 687 stores across both countries.

Online turnover via Jumbo.com increased by more than 50% and broke the €500 million barrier for the first time, the group added.

However, the group's full-year performance was impacted by a decline in turnover at its foodservice operation, La Place, which contributed €50 million in revenue for the year, compared to €165 million the previous year.

'Essential Function'

“The reported increase in turnover feels different than in previous years," Jumbo CEO Frits van Eerd said of the group's full-year performance. "We realise that as a company with an essential function we have a great social responsibility, which goes beyond the importance of extra turnover. The corona outbreak has caused a lot of suffering and as a retailer we have had to take strict measures.

"I am proud that all colleagues have gone to great lengths to make the store visit safe and pleasant and to provide our online customers with the best possible service. We will continue to do so in this anniversary year."

Since last autumn, all Jumbo stores are now supplied from the group's new automated National Distribution Center (NDC) in Nieuwegein, which has enabled the group to save on logistics costs, while at head office level, the group has already optimised its organisational structure, with more restructuring planned for the coming year, it added.

In the coming year, the group said that it plans to open approximately ten additional supermarkets in Belgium, as well as continuing the rollout of its joint store concept with Hema in the Netherlands, among other initiatives.