Jumbo sharpens its budget image with a “price storm”

It appears that Jumbo has launched a new price offensive in the Netherlands: in its weekly brochure and a video commercial, the retailer refers to a “price storm” with special offers on more than a thousand products.

Stronger focus on promotions

The weekly brochure leaves little doubt about this on Wednesday, with the headline “Price storm – now huge savings on more than 1,000 products” on the front page. The brochure features a lot of “free” promotions for well-known brands, from 1+1 to 2+3, and a lot of products for only one euro. On its website and social media channels, Jumbo also warns of a price storm, “with offers that will blow you away,” in a video featuring actor Frank Lammers.

It had long been clear to observers that Jumbo needed to do something about its price image. The supermarket chain had previously announced that it would focus more strongly on promotions again, because its policy of everyday low prices is less effective when competitors are fully committed to stunt offers. The chain’s Belgian brochure is also full of “free” offers this week, although there is no mention of a “storm” here.

Because Jumbo has eased off the price weapon in recent years – possibly as a result of internal difficulties at the company following the forced resignation of CEO Frits van Eerd – competitors in the Netherlands have been able to take advantage of the reduced price pressure. It is noteworthy that Dutch supermarkets are now more than 10% more expensive than Belgian ones, according to the Price Barometer of Shopperware commissioned by BABM (the Belgian Association of Brand Manufacturers).