Budget supermarket Jumbo’s boundless growth spurt

There seems to be no end to the growth supermarket chain Jumbo is experiencing. The family-run company is heading towards a turnover of 2.00 billion euros this year, a five times as much compared to the 400 million in 2002.

The number of stores has grown steadily over this period. While the company only had 36 stores in 2002, that number has swelled to 121 at the end of 2008. Jumbo’s secret, according to Director Frits van Eerd, is staying very close to the customer. Our formula is designed around the customer, not dreamt up first and then tested on consumers to see if they like it.

The current formula for Jumbo, founded in 1921 as a wholesaler of colonial goods, was introduced in 1996 and, says the company, represents the best service + largest selection x lowest price.
Jumbo’s growth ambitions remain strong. The supermarket chain opened 4 new stores in 2008, and a further 10 are already planned for 2009. Van Eerd hopes that number will grow to twenty.
The company currently has a roughly 5 percent market share, that we hope to expand to 6 or 7 percent. “Growth is not an end in itself, but if we succeed in opening at least ten new stores each year, I’ll be satisfied”, says Van Eerd. “That’s still one hundred stores in ten years.”

“Jumbo´s goal to lead the market wherever it opens a store, however, is not yet successful everywhere”, says Van Eerd. “But we’re going to keep going until we succeed.” The company from Brabant traditionally holds a strong position in the south of the country, and from there has spread out all over the Netherlands. “We’re not afraid to enter a new area; the Jumbo formula can be a success anywhere”, according to Van Eerd. Ample parking space remains a prerequisite, however. That’s why the company is avoiding Amsterdam for the time being.
A formula suited to the situation in the nation’s capital is out of the question, something that’s also true of the way the family business is organised. “We want to be a flat organisation.” With everyone serving the same interests, namely those of Jumbo’s customers.

The independence that characterises the family business is the main reason the supermarket chain chooses not to go public. “That’s not who we are at all.” “We’re a company that wants to continue operating as we always have.” “We want to build good stores and have satisfied customers.” “For us, it’s not just about earning money.” “We want to build good stores and have satisfied customers. The Jumbo formula can be a success everywhere.”

The supermarket Top-10 of The Netherlands
1 Albert Heijn, 750 stores
2 C1000, 462 stores
3 Aldi, 405 stores
4 Super de Boer, 330 stores
5 Spar, 320 stores
6 Lidl, 278 stores
7 Plus, 275 stores
8 Co-op, 180 stores
9 Troefmarkt, 120 stores
10 Jumbo, 117 stores

Jumbo once again the most popular supermarket
A recent survey shows that of all the supermarket chains in the Netherlands, Jumbo is the most popular among its clients. It’s the tenth time the Brabant-based supermarket collects top honours.
With a 7.66 out of 10, Jumbo scores well on both service and pricing.

Since many years Jos de Vries The Retail Company is a well-known organisation in the retail business. We are specialised in analysing, designing and realysing shop concepts all over Europe. We know for a fact that the successful presentation of shops and products can not only bring about a positive image but also achieve above-average successes. Jos de Vries The Retail Company and Retail Bouw Management have realized many new and reformed Jumbo supermarkets.
Please contact Maurice van der Kooij m.vanderkooij@josdevries.eu for further questions and / or information on the retail development projects of Jos de Vries The Retail Company.

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