Jumbo Posts Double Digit Growth, Confirms La Place Closures
Dutch retailer Jumbo has posted double digit growth in its supermarket arm in the first half of the year, while the group's online shopping portal 'boomed' during the period.
In its first half statement, the group also sought to clarify the position regarding the future of its La Place restaurant business, saying that it plans to shut 23 outlets, 'because the future prospects after reopening would be insufficient'.
In its supermarket business, Jumbo posted a turnover increase of 14.2% in the first half, compared to the same period last year.
Consumer turnover in the period was up €634 million to €5.10 billion, which was largely driven by increased purchasing due to the coronavirus, the retailer said.
Its La Place business, however, saw a 'significant loss in turnover' as a result of coronavirus lockdown measures and the permanent closure of 12 Hudson Bay stores earlier in the year.
Turnover at La Place amounted to €33 million in the first half of the year, compared to €82 million in the corresponding period in 2019.
“During the corona crisis, we were able to clearly demonstrate our added value with all colleagues,” said Jumbo CEO Frits van Eerd. “Despite all the necessary measures, we have spared no effort to make shopping fun, pleasant and safe.
"Our customers greatly appreciate the extra efforts and are therefore even more loyal to Jumbo. The substantial increase in turnover in this half year period is largely due to this."
van Eerd added that he believes Jumbo is "well on track" to achieve €10 billion in revenue this year.
Jumbo renovated some 30 stores in the past six months, and expects to open 25 new outlets in Belgium and the Netherlands during 2020, largely in inner-city locations taken over from Hema and Marqt.
It aims to have opened eight stores in Belgium by the end of the year, having recently opened its fourth outlet in the country, in Deurne.
In line with its Hema partnership agreement, all Jumbo branches will feature an in store Hema assortment by the start of next year, it added.
On the logistics front, Jumbo opened a new hub for grocery delivery in Breda in May, its fifth such facility after openings in 's-Hertogenbosch, Amsterdam, Utrecht and Middelburg.
At the end of this year, it also plans to unveil a new E-fulfillment Centre in Bleiswijk, to add to similar facilities in 's-Hertogenbosch and Raalte, while it also said that its new mechanised national distribution center (NDC) for dry groceries in Nieuwegein is almost ready for use.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine