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.”
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.