Jumbo speeds up Belgian expansion with franchising

Jumbo

At the end of this year, Jumbo will open its first Belgian store that is operated by an independent entrepreneur. In this way, the Dutch supermarket chain wants to speed up its expansion.

 

Three contracts completed

Until now, Jumbo opened only company-operated stores in Belgium, but that is about to change. At the end of this year, the chain will open a supermarket run by an independent entrepreneur and for next year two contracts have already been signed with entrepreneurs. More franchise stores will follow, financial director Ton van Veen told business newspaper De Tijd.

 

Franchising should help Jumbo to grow faster in Belgium. This is necessary if the chain wants to reach the set target of 100 stores in 2025. This year Jumbo will open nine more supermarkets, to reach a total of twenty - although it is still uncertain whether two stores will be able to open in time.

 

100 million euro milestone

Van Veen is satisfied with the performance in Belgium so far: turnover in the first half of the year doubled to 60 million euros, compared to 2020. At the end of this year, the chain in Belgium will therefore easily pass the 100 million euro mark.

 

The Belgian activities are not yet profitable. However, various branches are already making a profit at store level. Jumbo wants to break even in Belgium next year and continues to invest, both in store openings and marketing.