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Dutch retailer, Jumbo, has announced plans to build a new online fulfilment centre, following the rapid growth of its online offer.

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Jumbo has unveiled electric vehicles for online deliveries.

Sustainable delivery option

Jumbo is to start using electric vehicles for its last mile online delivery service in Groningen, with Utrecht following suit shortly. The so-called ‘Street Scooter’ is specially designed for deliveries as a quieter alternative to traditional delivery vehicles, and doesn’t emit CO2 or have a negative effect on air quality.

Roy van Keulen, Jumbo’s Director for Online, commented: "As a family business, sustainability is in our genes and we feel responsible for the present and future generations. In everything we do, we want to make it easier and better for customers.”

Investing in online

Earlier this year, Jumbo announced plans to invest in its online supply chain, including doubling the number of stores that offer home delivery. Find out more about its online expansion plans, including a new automated distribution centre, here.

In its 2016 results, Netherlands-based Jumbo announced plans to further invest in its supply chain, focusing on improving its online capacity.

Total sales for Jumbo rose 7% to €6.678 bn (or 9% stripping out the beneficial effects of a 53rd week in 2015). The retailer said organic growth of 4%, versus its estimate of industry wide growth of 2.5%, meant it gained share and underpinned its sales performance during the year.

Looking ahead to 2017

Following on from the results, Jumbo’s chief executive, Frits van Eerd, said: “ The figures for 2016 show that we are well on track. We want to grow further and with that goal in mind we have been making over the past year aimed at even more agile and more customer-oriented organisation of the Jumbo company”

50,000 orders a week

A key element in 2017’s growth strategy will be to grow online. Jumbo has said it wants to double the number of stores that offer home delivery during the year, from the ‘more than 100 locations’ that offer the service at the end of 2016. The delivery option will support the expansion of the retailer’s pick-up point offer, which Jumbo said would be extended to its 300th site in January. Jumbo's CFO, Ton Van Veen pointed to the opportunity provided by B2B sales, which the retailer had not had the opportunity to fully exploit due to insufficient capacity at its distribution centre. To support online growth in the medium to long term, the company said that it had expanded the capacity of its ecommerce-focused fulfilment centre to meet the demand of 50,000 orders per week, up from 20,000 previously.

Underpinning efficiency goals

To support the chain’s expansion and underpin its efficiency, Jumbo has said that towards the end of 2017 it would begin the construction of a new 43,000 sq. m distribution centre in Nieuwegein. The nationwide, automated distribution centre, which is set to be completed in 2020, will be focused on medium and slow moving items.

Building a collaborative network

Discover how Jumbo is working with SCA Hygiene and other companies to operating a collaborative distribution project, which is creating a more sustainable and responsive supply chain from manufacturer to consumer in our case study.

In an interview, Ahold’s chief executive Dick Boer has discussed online grocery delivery fees, while Albert Heijn has continued to expand its presence in Belgium and has expanded its range.

Albert Heijn to maintain fees for grocery deliveries

In an interview with De Telegraf, Ahold’s chief executive, Dick Boer, said that Albert Heijn intended to maintain its charge on delivering grocery orders to shoppers' homes. The question has arisen following the launch of competing services from Jumbo and online only Picnic, both of whom have chosen not to charge for delivery. Boer explained the decision noting that a delivery fee is not an obstacle for many online shoppers as they tend to be more loyal to a brand and are purchasing bigger baskets. Boer said that this was only in relation to grocery deliveries and would not charge for orders over €20.

Franchisee in Belgium opens first converted store

Following the announcement that it would be joining Albert Heijn in July Antwerp-based chain Peeters-Govers has said it has reopened one of its stores, in Turnhout, under the retailer’s fascia. The store in Turnhout is the first of Peeters-Govers' eight stores to be converted to Albert Heijn, with two more expected to be completed by the end of 2015 and the remainder in 2016.

Following the opening of the Turnhot store, Albert Heijn added another in Zottegem, its 35th, enabling it to state that it was expecting to end the year with 38 stores in Belgium. At the same point in 2014 Albert Heijn operated 25 stores and so at the current rate of expansion it should be able to reach its long held target of operating 50 stores in Belgium by the end of 2016.

Albert Heijn launches app to help tackle food waste

Albert Heijn has launched a two store trial of an app that spotlights products that have been discounted due to limited remaining sell-by time. Called AH-foodsie, the app will be promoted via stickers on the supermarkets’ chilled cabinets and is aimed at helping the retailer reduce food waste. The retailer has published a video on YouTube to explain how it works, while shoppers will be able to enjoy discounts of up to 35% on the products. extends product range to include downloadable software has expanded its product range by enabling shoppers to download software straight from the site. Although focused on games, shoppers can also buy anti-virus packages and Microsoft Office suites. The retailer said that initially it would make 1,000 products available for download, but would extend that further in future.


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All you need to know about Jumbo's supply chain in two slides, including supply chain strategy, latest network developments and tips for greater collaboration.
SCA Hygiene, along with KraftHeinz, Refresco, FreislandCampina, Hero, Jumbo and Nabuurs & Bakker Logistics are operating a collaborative distribution project creating a more sustainable and responsive supply chain from manufacturer to consumer. All companies have cut wasted road miles, reduced CO2 emissions and enhanced the overall sustainability and effectiveness of their transport networks. The collaborative distribution project has been running for over ten years, discover the secrets to their success.

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