What the company or idea is
Jumbo is a supermarket chain in the Netherlands and Belgium, part of the privately owned Van Eerd Group, which began as a grocery wholesaler established in 1921. With 740 stores and a market share of about 22%, it is the second largest chain in the Netherlands, behind Albert Heijn. The first store was opened on 18 October 1979 by Jan and Anita Meurs in a former church in Tilburg. They named it after the elephant Jumbo to one-up a local rival called Torro, which belonged to Van Eerd. Van Eerd bought the store from the Meurs family in 1983 and expanded, first in the southern provinces and then nationwide.
How it actually makes money
Jumbo sells groceries through its supermarkets and has been backed by a wholesale parent since 1983. The article gives no revenue or margin figures, but it does show the machinery. In its 2006 description, the head office and distribution centre are in Veghel, with regional distribution centres in Beilen, Drachten and Den Bosch. In 2016 it also acquired the restaurant chain La Place out of V&D’s bankruptcy, for an undisclosed sum. The article describes its sponsorships below but gives no figures for them.
What works
Expansion by purchase. By October 2005 there was a Jumbo in every Dutch province, though until the C1000 acquisition relatively few were in the Randstad. In 2006 it bought 12 Konmar supermarkets from Laurus, and in November 2011 it was announced that it would take over all C1000 stores, which made it the second largest chain. In March 2024 it became the first Dutch supermarket to stop discounts and special promotions on meat, and pledged that 60% of protein sales would be plant-based by 2030, a commitment public health and environmental groups supported.
What does not
Sponsorship was caught up in the scandal. From 2013 Jumbo backed Max Verstappen, and from 2014 a cycling team that became Team Jumbo-Visma, along with motorsport. In September 2022 CEO Frits van Eerd was arrested in an investigation into money laundering through real estate, automotive trade and motocross sponsorship. Jumbo commissioned an independent investigation of its sponsorships and it found no criminal offences or irregularities. Van Eerd stepped down as CEO in October 2022, and in January 2023 Jumbo announced that it would end most of its motorsport sponsorship while continuing to support Verstappen.
What to take from it
The chain’s growth came from a wholesaler buying a one-store business, opening stores across the country and then taking over C1000 and 12 Konmar stores. Its sponsorships were still running when CEO Frits van Eerd was arrested in 2022, and they were wound down afterwards. In June 2023 Jumbo announced it would end its deals with Verstappen and Team Jumbo-Visma, and it said it would no longer sponsor the Dutch Grand Prix, as part of the strategy of Ton van Veen, named CEO in March 2023.
Is it worth your time
Yes, if you want a short account of how a Dutch grocer became the number two chain through takeovers and then shed its high-profile sponsorships. Look elsewhere for financials, since the article carries none.
