Jumbo Group’s turnover hit €9.73 bn in 2020

Date : 05 January 2021

Harriet Cohen

Senior Retail Analyst

Netherlands-based Jumbo reported it generated a turnover of €9.73 bn in 2020, including sales through its La Place restaurant chain. The turnover at its Jumbo stores increased by 15% to €9.68 bn, with its online sales up by more than 50% to over €500m.

Total sales +15%, organic growth +11% in 2020

Jumbo said its eponymous stores saw turnover growth of 15% to €9.68 bn, aided by a 53rd week. Without the affect of the additional week, Jumbo said turnover would have risen by 13%. Organic growth at existing stores reached 11% in 2020, 9% excluding the effect of the 53rd week.

New stores supported revenue growth…

The performance of its own brand was supported by the addition of 15 new stores, ‘mainly in inner-city locations in the Netherlands and at new locations in Belgium’, which took its total to 687 at the end of 2020. 10 stores were opened in the Netherlands, in the key urban locations of Amsterdam, Utrecht, Den Haag and Haarlem. 50 stores were also updated during 2020. The retailer also highlighted the roll out of its new store concept at NS stations in conjunction with the HEMA brand. At the six stores Jumbo is responsible for the food offer.

Jumbo opened five stores in Belgium, taking its total to eight. It reported that its turnover in the country remained ‘unchanged’. In 2021 it aims to open about 10 new stores in Belgium.

…While online sales leapt by more than 50%

Jumbo’s online turnover increased by more than 50% to over €500m in 2020. Increased demand, as shoppers looked for the convenience provided by the online channel as they tried to avoid stores because of lockdowns, required it to expand its capacity. To this end, it ended 2020 with six delivery hubs. 10 more delivery hubs will be opened in 2021, while its third online fulfilment centre will open in early 2021 in Bleiswijk.

Growing focus on health-oriented ranges

Jumbo noted the increasing shopper interest in health-oriented products in 2020. To meet this growing shopper need it said it launched healthy ready-to-eat meals under the La Place brand. It also expanded the availability of its Foodcoach app, which provides personalised advice on what is required for balanced nutrition for various sports people, from cyclists to runners and hockey players, amongst others.

Also announces partnership with Vermaat Groep for La Place

La Place suffered due to the coronavirus pandemic, with most restaurants closed. As a result, the turnover generated by La Place fell to €50m, from €165m in 2019. Following the pandemic, Jumbo said 23 La Place restaurants will be closed permanently. Meanwhile, in a separate announcement, the retailer said it entered a strategic partnership with catering specialist Vermaat Groep for the operation of the remaining 44 La Place restaurants. Jumbo and Vermaat will develop La Place’s concept, which will enable it to ‘focus on the expansion of La Place Express convenience formula and the rollout of La Place products in Jumbo Supermarkets’. Jumbo will remain the owners of La Place brand, six restaurants, four outlets on stations and the international franchise relationships.

Outlook for 2021

Looking to the year ahead, the retailer said it expected its turnover to breach the €10 bn barrier, with online set to grow strongly. To support the latter’s growth, it will increase online capacity through the addition of a third fulfilment centre for online orders and 16 delivery hubs. Together Jumbo and HEMA will jointly develop a new retail concept at six NS stations, while there will also be a further roll out of an updated La Place concept in conjunction with the Vermaat Groep.