Jumbo is hitting its stride in Belgium: this year, the retailer plans to open seven more supermarkets, franchise as many and increase its sales and profits by 20 to 25%.
Seven permits
More quickly than expected, Jumbo became profitable in Belgium. Operational improvements were the deciding factor, managing director Peter Isaac tells RetailDetail. “You start with new stores where you have to train 50 to 60 people, out of the blue. The supply chain must be aligned with the Netherlands. Our formula is based on service and friendliness, but if your base is not functioning well, or if your staff is not sufficiently trained or experienced, you cannot produce that surprise effect in the store. It’s a question of time. But once it started working, it got better and better.”
On the expansion front, however, 2024 was disappointing, with only four store openings, including a large Foodmarkt. “It was less than expected: the authorization procedure is difficult in Belgium. For this year, things are looking much better, we have seven permits which are very concrete. Now it all depends on the construction work. There are already plans for 2026 as well. We are going to open more stores than in the last two years. The first opening will be in Boom next week. This store was actually planned for 2024, but the project was delayed due to construction issues. It will be followed by Tienen in May. The center of gravity will be in the second half of the year. »
Local contribution
Jumbo is increasingly entrusting its own stores to independent entrepreneurs, which is also an important success factor. “Soon, Rumst and Oudenaarde will be transferred, we have already announced it. I estimate that we will be able to sell six to seven stores this year, but we will only be able to communicate about this once all the contracts have been signed. »
Collaboration with contractors has a favorable impact on costs. “Our organization has found itself slightly lighter in Belgium. But it’s not just about joint committees or remuneration models. This is strongly linked to our concept: Jumbo really wants to be a local supermarket, and local contribution is much more difficult in our own stores. An entrepreneur who takes over is closer to the customer and develops local initiatives. »
At Jumbo, entrepreneurs benefit from this freedom, says the general manager. “On the one hand, we want a strict formula: we apply the same principle everywhere. On the other hand, we want local content: commercial initiatives, local assortment… This is how we create more impact. What is relevant in Zedelgem is not necessarily relevant in Rijkevorsel. We have good interaction with our contractors. »
No e-commerce yet
Are all stores profitable? “It’s not that we have to close stores, we believe in the potential of all stores. However, some of them, generally directly owned stores, are struggling a little more due to the circumstances. If we entrust these stores to entrepreneurs, we see that they begin to stand on their own two feet. We now have a better idea of the mechanisms at play. If an entrepreneur opens a butcher shop in a store, that really makes a difference. »
How did the Ghent Food Market start? “Good, despite the traffic difficulties. Afrikalaan is currently closed. However, we are achieving higher turnover than we had anticipated. When this work is completed, after March or April, we will achieve very good growth there, I am convinced. »
-E-commerce is approaching break-even in the Netherlands. When will Jumbo also launch into online commerce in Flanders? “There’s nothing planned about that yet,” replies Isaac. “We still have enough challenges to overcome to build and make our bricks profitable in Belgium. We want to take steps before we run. The online business model is also not obvious in the Netherlands. We are not going to compromise Belgian expansion with this, it adds complexity and financial risk. »
Critical mass
In the assortment, Jumbo is taking measures: more Belgian products are appearing in categories important to Flemish consumers, such as biscuits and waffles, for example. “For fresh pastries, we now have Crelem as a supplier. It’s getting a little easier now that we’re getting bigger: you can organize supply chains more efficiently. There is still a lot to do, but we have the feeling that we are evolving from a kind of start-up to a scale-up. The critical mass is here now, providing more opportunities on all fronts. Project promoters and entrepreneurs also come to us more easily now. »
The new house brand Jumbo’s is also well received in Belgium. “We’re just getting started, but it offers opportunities because it’s a high-quality in-house brand. Belgian consumers are critical and this range meets their expectations. Some Belgian suppliers are also interested in this brand. It offers perspectives. Belgian suppliers are also appearing in Dutch stores, for example in the renovated Foodmarkt in Breda. »
20 to 25% growth
In Belgium, turnover reached 397 million euros and, for the first time, Jumbo recorded black figures. “We expect a modest profit,” says financial director Peter van Erp. “I think after five years it’s a great achievement. The foundations are in place and existing stores are generating enough profit to support the losses of creating new stores. I think we will be permanently in the black figures and we are very happy about that.”
Jumbo also charges all costs clearly, he emphasizes: “There are obviously support services in the Netherlands, but they are relatively limited. Belgium has its own headquarters in Brasschaat, supports its own P&L and profits and pays all logistics costs. »
In 2025, Jumbo Belgium wants to take the next step in terms of turnover, says Mr. van Erp. “While we were at almost 400 million last year, we want to increase our turnover by 20 to 25%, and preferably a little more. Profitability must match sales growth. The plans are strong enough for us to dare to take this path. It is therefore certain that we will have dark figures in 2025, and better than in 2024.”
