Netherlands: revenue growth, online

Date : 20 April 2016

As Netherlands-based discount retailer Action announces strong 2015 results, Picnic and Dekamarkt discuss plans to expand their delivery areas and Jumbo sets aside more money to invest in its existing operations, we round up news from the market.

Action sees strong results in 2015

Action has said revenue rose 32% in 2015, aided by a 53rd week, reaching €2,034m, €1,995m excluding the effect of the additional week. The retailer said that like-for-like sales reached 7.6%, while a net increase in store numbers of 141 in the year helped drive total revenue growth. The expansion of store numbers, which saw it reach 655 stores across six markets, saw a ‘more than’ doubling of sites in France and the retailer’s first stores in Austria and Luxembourg.

Looking to the year ahead, Action has said it will maintain its pace of expansion, with a focus on France and Germany, while also investing in its internal organisation and processes. These elements will build on Action’s existing settled strategy of offering competitive prices, ‘a surprising selection and convenience’.

Jumbo sets out further investment for stores

As part of an interview in local newspaper Het Financieele Dagblad, Jumbo’s CFO, Ton van Veen, has said that following a strong uptick in sales between Christmas and Easter, the retailer will be investing a further €25m in its existing stores and online operations. Following the upgrade in investment, Jumbo will spend €125m in its operations, as it looks to maintain its present organic sales growth of between 4% and 5% for the full year. The interview followed the publication of Jumbo’s annual report, which showed that it generated a margin of 0.8% against a target of between 2% and 3%.

Picnic adds Utrecht and raises potential of delivering non-food orders

Online only grocer Picnic has said it will enable shoppers in Utrecht to receive home delivery of orders. Mirroring its fulfillment solution from Amersfoort, Picnic will use a central hub from which to expand its delivery coverage within Utrecht and then to neighbouring towns. Meanwhile, in a separate announcement, the retailer said it was open to fulfilling orders for non-grocery retailers who want to outsource the final mile delivery of products. Picnic’s founder, Michiel Muller, said that although the initiative would not be taken in the short term, as it is focusing on building the scale of its own operations, it was a longer term service that it could offer third parties.

DekaMarkt expands delivery coverage

As part of an initial expansion of its online delivery area, DekaMarkt has said it has added Heemskerk as part of a plan to add further areas over the next six months. In terms of its supply chain, DekaMarkt will fulfil orders through its stores, with delivery made by local store staff, rather than a separate team. The strategy for fulfilling orders mirrors rival Jumbo’s initiative, putting control of the order closer to shoppers and enabling them to be topped up with stock from stores if necessary.

PLUS to relaunch with new tagline

As part of its strategy to build on its strong performance in 2015, PLUS is set to adapt its advertising slogan to put the focus on its offer and as part of its aim to be ‘the best supermarket in the Netherlands’. The retailer will change the tagline to ‘Good food. We love’ as part of its aim to shift the focus to its offer and how it is aiming to provide great food for all shoppers, every day. In the advertising campaign to be built on the tagline, PLUS has said it will move from its stores into shoppers’ kitchens to spotlight the quality on offer at affordable prices.