Dutch Retailer Jumbo Posts 5.3% Growth In First Half Of Anniversary Year
Dutch supermarket chain Jumbo has reported a 5.3% increase in turnover in the first half of its 2021 financial year, a period that marks the group's 100th anniversary.
The group said that its performance was driven almost entirely by organic growth, with online turnover rising by more than 50% due to 'substantial improvements' in its network. The retailer's market share grew to 21.8% in the period, it added.
At the same time, however, its La Place foodservice business continues to count the cost of the coronavirus, with turnover of €13 million in the first half, a decrease of 60% compared to the same period in 2020.
Announcing its half-year results, the group said that it is 'in line' with its target of reaching €10 billion in sales for the first time this year.
Developing The Jumbo Offer
Jumbo is not resting on its laurels, however, with chief executive Frits van Eerd stating that the business continues to explore ways to develop its offering, amidst heightened competition and accelerated change in the marketplace.
“Full focus on the customer is now more important than ever," he said. "There is plenty of dynamism in the market, with new competitors and increasing price pressure due to scarcity of raw materials.
"That is why you have to keep looking critically at your business model and make adjustments if necessary.”
van Eerd added that in this anniversary year for the group, it will be "putting the spotlight on our Jumbo formula".
With this in mind, Jumbo recently announced a new store organisation model, which creates a 'clear division' between employees that focus on customer needs and those that maintain operations 'behind the scenes', the group added. This new operating model will take effect from September.
This new operating model has drawn criticism from unions, however, with Dutch union FNV branding the move 'ridiculous' back in April,
Jumbo's store count in the Netherlands now stands at 686, having 'grown slightly' in the half-year period, with almost all Jumbo stores now boasting a HEMA aisle, as part of the group's tie-up with the department store chain.
In Belgium, the group now operates 11 stores, and plans to expand this to 20 by year-end, and 100 within a period of five years.
In terms of La Place, the group recently announced a strategic partnership with Vermaat Groep, which will see the catering firm take over the running of 44 La Place restaurants. Jumbo also announced plans to further expand its La Place Express convenience formula, in busy pedestrian areas, following recent openings at Utrecht Central Station and on Coolsingel in Rotterdam.
As a result of an increase in orders from business customers, the group has signed a partnership with wholesaler Makro, which will see around 1,000 SKUs from the latter's range available as part of its offering.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.