More than 10 billion euros in turnover. Veghel’s Jumbo supermarket chain transformed it in 2022. A record, but experts warn that the figure is flattering. Also, according to them, Jumbo has to endure a lot of setbacks, on top of all the recent negative media attention. “There are many challenges. The mood in the boardroom isn’t going to be a happy one right now.
Yes, Jumbo converted a lot of money. Never before has the turnover of the Brabant supermarket giant broken through the magical limit of 10 billion euros. However, that obviously means that inflation is skyrocketing. And this is a very important detail.
“A pack of apple juice is more expensive than ever, but Jumbo also sells significantly less,” says supermarket expert Peter ter Hark, referring to the high turnover, but also the decline in sales. “In addition, wage costs have also increased, as have purchasing costs and energy costs. The turnover figures give a distorted picture of reality.”
“Jumbo is still grappling with big problems.”
And that doesn’t just apply to the Jumbo, adds Ter Hark. “Actually you see it in all the supermarkets. They all come with high turnover figures, or will come with them anyway. But suppose inflation was much lower, then that high turnover would never have been achieved. The products are more expensive to buy, but sell for less”
According to Breda retail expert Paul Moers, this is absolutely correct. Above all, it is critical. “Jumbo is doing well on its own, sometimes even better than the competitors in the market. But there are also many issues that the company struggles with.”
“Jumbo is unsuccessful. Shot after shot is missing.”
For example, Jumbo blundered in 2021 with the takeover of the supermarket chain Deen and recently again with the takeover of Jan Linders. Both chains went (in part) to competitor Albert Heijn, whether or not in the form of a partnership.
A big blow, says Ter Hark. “At the moment Jumbo can only really grow through acquisitions. They’re trying to do it fast now. Big steps, home soon. But he can’t. They miss one shot after another.
Ter Hark also refers to the situation in Belgium, where Jumbo is now also located. “They’ve invested tens of millions there, but they’re making huge losses,” says Ter Hark.
“It was all limited damage.”
According to Moers, the problems don’t end there. According to him, Jumbo is also struggling with the brand. “It’s mostly trying to be fun now, whereas Jumbo has always been an innovative and relevant company.” And then Jumbo also has the problem of having to divide attention between their other chains, like La Place, Hema and Jumbo Belgium. “This can sometimes take too much energy from them,” concludes Moers.
There also remains the negative media publicity, of which there was enough at Jumbo in 2022. Ton van Veen now temporarily replaces retired CEO Frits van Eerd, who was arrested by the FIOD in September on suspicion of a money laundering case.
Jumbo has also been in the news negatively due to an error with a World Cup commercial featuring construction workers dancing. In November, the commercial was immediately discontinued. However, experts believe that this negative publicity has had and will have relatively little impact.
“It’s tough to market, but that’s especially true for small parties.”
“That damage was limited,” Moers says. “This is because the Jumbo brand has traditionally been very powerful and has always been well presented. So even such a brand can have something. Ton van Veen and the board just need to be careful that there are no new mistakes.”
Moers is convinced that Van Veen will be successful. “He leads the club now and that’s good news. Van Veen is a financial genius and has meant a lot to the growth of Jumbo. I have every faith in him. He’s tough in the market now, but that’s especially true for smaller supermarkets, not for Jumbo or competitor Albert Heijn.”
Ter Hark agrees with the latter. “No, of course Jumbo won’t fall. It’s a little disappointing for Jumbo, but it’s a good shop. Nobody is worried about that.”
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