Jumbo 2017 results: +5% to €7bn

Date : 02 January 2018

Netherlands-based Jumbo has released its 2017 results, with turnover increasing by 5% to €7.01bn. The retailer attributed performance to existing Jumbo stores, which grew by 4.2%. As of the end of 2017, Jumbo operated 585 stores, while it plans to increase its store count to 600 by the end of 2018. Here, we outline the retailer's 2017 highlights and priorities for 2018, which focus on convenience, refurbishments, online, La Place and logistics.

1. Convenience: Jumbo City and Jumbo Foodmarkt expansion

Jumbo plans to invest in convenience by growing the Jumbo City convenience banner to a minimum of ten stores. The retailer currently operates three of these stores, located in Groningen, Eindhoven and Den Bosch. The ‘food experience’, with a focus on ‘tasty, healthy and easy food’ is central to this concept. Read more about the Jumbo City here.

As part of its focus on convenience, Jumbo will also double the number of Foodmarket stores it operates to six stores. This will include new locations in Utrecht, Leidschendam and Tilburg. Find our more about the format in IGD’s exclusive Foodmarkt store visit report.

2. Supermarket refurbishments

Supermarkets, which account for the majority of Jumbo’s store count, will continue to be refurbished. During 2017, 30 supermarkets were refurbished or expanded, while in 2018 a further 60 stores will be refurbished. Store owners are also encouraged ‘to increasingly tailor the store’s offer to the market area they serve’.

3. Double online sales and orders

In 2017, the retailer invested in number of areas to become a ‘leading omnichannel player’ in the Dutch market. This saw sales on Jumbo.com and the Jumbo app double. 

During the year, the retailer grew the number of Jumbo pick up points to 390 sites, while 225 locations also offered home delivery.

Jumbo also focused on the business to business opportunity, doubling the number of online orders to this customer group. It attributed part of its success to agreements with purchasing organizations such as Intrakoop.

Elsewhere, Jumbo has also been working to attract ‘200 top digital talents’ for its Jumbo Tech Campus. The retailer believes ‘this will contribute to the realization of … online ambitions and ensure that Jumbo can respond even faster and better to the development of customer-friendly digital applications’.

Jumbo will look to double its online sales and number of online orders placed in 2018.

4. La Place expansion at home and abroad

La Place restaurants saw turnover increase by 34.1% to €123.3m in 2017. La Place has been expanding its presence in inner cities, as well as meeting the needs of travelling consumers at ‘motorways, at airports and in train stations’. This includes new launches at Dutch motorways, as well as at Gare du Nord and Garde de l’Est in Paris, as well as at airports in Eindhoven and Toronto.

Managing Director Bar van den Nieuwenhof said, ‘in the Netherlands La Place remains an enormous attraction, and I am convinced that we can also expand this position abroad. The possibilities for international expansion are endless’.

During 2017, ‘the number of La Place branches grew from 59 to 92’ including 11 international branches. This year, the chain is planning to open at least 30 new sites in the Netherlands, as well as multiple restaurants at the Hudson’s Bay department store. Meanwhile La Place products have been  introduced at Jumbo stores.

5. Logistics investments

Elsewhere in the business, Jumbo is planning to begin construction on a new automated distribution centre in Nieuwegein early this year, while the construction of the first phase will be completed by the end of 2020.

 

Want to keep up to date with developments at Jumbo and other international grocery retailers? Sign up for IGD’s free Retail Analysis newsletter.