Dutch retailer Jumbo has noted that ‘emphasising the distinctiveness of [its] formula is now more important than ever’, as it committed to its ‘Jumbo zoals Jumbo bedoeld is’ (‘Jumbo as Jumbo intended’) business strategy for the coming year.
In its 2023 annual report, Jumbo noted that revenue went up by 7.3% for the year, to €11.02 billion, however, the revenue growth was largely driven by inflation and lower than the average market growth of 7.6% in the Netherlands.
As a result, the group’s market share decreased slightly, to 21%, prompting the business to ‘further refine’ its strategy.
‘A thorough self-analysis revealed that Jumbo was less distinctive than in the many years prior,’ the retailer’s management team noted in the annual report. ‘We felt the need to return to our roots and restore the unique characteristics that made us a large and successful supermarket formula. In other words, Jumbo as it was intended to be.’
As the retailer noted, the adoption of its new business strategy coincided with the appointment of Ton van Veen as chief executive in March of last year, with the management team confident that with van Veen at the helm and Colette Cloosterman-van Eerd in the role of president-commissioner, ‘[the] strategy and daily operations are in good hands.’
Jumbo As Jumbo Intended
Under the ‘Jumbo zoals Jumbo bedoeld is’ strategy, all activities undertaken by the group will seek to emphasise its distinctiveness, it added. As the management team put it, this incorporates ‘full, pleasant stores; employees with a smile; a wide, fresh, and responsible assortment; and unmistakably low prices. With these essential and distinctive formula characteristics, we aim to truly delight our customers once again.’
The group’s Jumbo private-label brand will form a key part of this strategy, however, following a strategic review, less importance will be placed on La Place, its HoReCa brand, the value of which has decreased by €14.5 million.
As of the end of 2023, Jumbo’s total store network had expanded to 725 outlets, marking a rise of 13 stores, compared to the 712 stores that it had at the close of 2022.
Among the new additions are ten former Jan Linders supermarkets located in North Brabant, Limburg and Gelderland. Additionally, Belgium saw the inauguration of seven new Jumbo stores, bringing the retailer’s total store count in the country to 33.
A Retailer In Transition
‘This annual report reflects transition,’ the management team noted. ‘It gives us confidence to see that all our employees, entrepreneurs, suppliers, and other stakeholders are enthusiastically working towards a successful transition. There is plenty of work ahead, a challenge we embrace.
‘As a result, Jumbo will once again be better, cheaper, and different. In 2023, we laid the groundwork for this. In 2024, we will flourish, so that thereafter, we can reap the benefits.’
