Jumbo broke through the 10 billion turnover limit for the first time. “Turnover figures are between 5 and 10 percent due to high inflation, which is about the average estimate for the year,” says Deputy CEO Ton van Veen in conversation with BNR. ‘We’re growing just under 4% in terms of revenue, so that means we’re down slightly in terms of quantity.’
Bad publicity
Following Frits van Eerd’s involvement in a major money laundering case, 2022 has been an eventful year for Jumbo. Van Veen says Jumbo is outside of that, but that it impacts the company in terms of reputation. ‘On the other hand, we see that our customers have remained tremendously loyal. Our turnover has continued to grow. This would not have happened if customers had turned their backs on us en masse.”
According to Koelemeijer, reputation also plays a small role. ‘People mostly buy from a supermarket for convenience and habituation. Also, the investigation into CEO Van Eerd is still ongoing, so it will take some time for answers to come.’
Earnings data will follow later
Jumbo will announce earnings data during the first quarter of 2023. “We don’t have those numbers yet,” says van Veen. According to Kitty Koelemeijer, a marketing professor at Nyenrode Business University, high inflation is largely the reason for the huge turnover.
‘First, the record amount is due to high price increases in supermarkets. The question is what is left of growth after inflation adjustment. Supermarkets have experienced unprecedented turnover over the past two years during the corona virus, so I expect growth may still be negative after the adjustment.”
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Expand to Belgium
The supermarket chain will again invest heavily in the coming year to further grow in Belgium. “We’re going to open about ten new stores there,” says Van Veen. The group already has 27 branches in Belgium. “We have a strong position there, these stores are increasingly contributing to our turnover,” said Peter van Erp, Jumbo’s chief financial officer, in an explanation of the annual figures.
Belgium is now a struggling market. Turnover in Belgium exceeded 200 million euros last year, doubling compared to the previous year. ‘The arrival of both Albert Heijn and Jumbo has sharpened the competition there. Belgian consumers are also more attentive to the price,’ says Van Veen.
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