At the end of this year, Dutch supermarket chain Jumbo will end its collaboration with the international purchasing organisations Everest and Epic Partners for the purchase of branded products. The retailer will continue to purchase private labels with German retailer Edeka.
Strategic course
Jumbo says it looks back on a valuable collaboration, but wants to take a different approach to the procurement of A-brands. “The collaboration has contributed to an affordable, wide, and relevant range for our customers. It has also given us more insight into the international procurement playing field”, says interim CEO Tom Heidman in a press release. However, he adds that the collaboration no longer fits in with Jumbo’s strategic course.
“Our course requires more scope to implement the procurement of A-brands on our own and in direct collaboration with suppliers, in line with Jumbo’s status as a family business. With a strong focus on the relationship and a future-oriented collaboration for joint growth.” Jumbo will enter into discussions with all stakeholders involved, including suppliers, to determine the specific details.
“Good cooperation with suppliers is crucial”
Jumbo will continue its collaboration with German supermarket chain Edeka for the international purchasing of private label products, and will continue with Everest Fresh for the purchasing of potatoes, vegetables, and fruit. “Nothing will change for customers; they can continue to count on the familiar, affordable Jumbo range. We remain committed to low prices and optimal availability of the range for customers. Good cooperation with suppliers is crucial in this regard”, Heidman concludes.
With this step, Jumbo may be responding to recent criticism from brand manufacturers about the many purchasing discussions and delistings at the supermarket chain. The decision also comes just a few months before Jesper Højer, the Danish former CEO of Lidl, will take over as CEO. He has extensive experience in international purchasing.
