Dutch retailer Jumbo achieved approximately 1% growth in turnover to €6.0 billion in the first half of its financial year with a stable market share of 21%.
Jumbo implemented price reductions amounting to more than €100 million in this period, while a drop in tobacco sales cost the company €60 million.
Ton van Veen, CEO of Jumbo, stated, “These are exciting times in retail and, in particular, for supermarkets; conditions will remain tough this year as well. For example, costs continue to rise, margins are under pressure and with the loss of tobacco sales, turnover will continue to decline in the entire sector in the coming six months.
“At the same time, we are seeing customer numbers and customer satisfaction increase at Jumbo. We know from the past that this is a harbinger of growth in the near future. This gives us confidence that we are on the right track. The announced adjustment of the office organisation will be implemented in the second half of 2024 and will contribute to a more effective and efficient Jumbo organisation.”
Divisional Performance
In Belgium, the retailer saw a 20% year-on-year growth in turnover to €200 million in the first 28 weeks of 2024. The company attributed its performance to higher turnover in the existing outlets.
Jumbo operates 33 stores and Belgium and expects to add five new outlets this year, including its first Food Market in Ghent, Belgium, in September.
“We have always believed in it and are happy to see that Jumbo Belgium is now gaining momentum. With their boundless energy and dedication, the Belgian team is able to attract more and more customers and achieve good growth. Adding a Food Market to the Belgian store portfolio is therefore a logical step,” stated van Veen.
Online turnover in the first half remained stable compared to the year-ago period.
The retailer has expanded its home delivery service to 99% of the Netherlands.
Purchasing Alliance
Last year, the Dutch retailer joined Everest and Epic Partners, two European purchasing organisations, to collaborate with other European supermarket chains in the area of purchasing.
Currently, the company is in a transition phase, and van Veen added that it does not always control the negotiation process in this collaboration.
“Sometimes, this results in empty shelves, but we work hard to prevent this. Our store colleagues help customers find alternatives when products are unavailable. Despite this challenge, we are happy with the initial results,” van Veen said, and added, “We have reduced the prices of hundreds of products and expect to continue doing so for the rest of the year. In the long term, we expect this step to positively impact our turnover, which will benefit our customers and entrepreneurs.”
