Picnic raises sales by 40 %, finds new capital to continue growth

Dutch online supermarket Picnic was able to raise its sales by 40 % last year. Looking abroad to continue its growth, the company has found 355 million euros at existing shareholders.

Investing in robots

Picnic managed to raise its turnover to 1.25 billion euros, but is eager for more. On its home market, growth mainly comes from existing city hubs that draw in new customers, whereas growth in France and Germany comes from expanding to new cities. With 40 million in sales after barely six months, Hamburg is the fastest growing city.

“We are taking the same approach in Germany and France as we did a few years ago in the Netherlands”, co-founder Joris Beckers said in a press release. “We build distribution centres and open hubs in cities like Hamburg, Berlin and Paris. Quarter by quarter, we then roll out grocery delivery. Compared to the Netherlands in the early years, we are growing even faster in Germany and France. In addition, the investments in robotisation further improve profitability and strengthen our unique market position.” The company is building a robotised fulfilment centre in Oberhausen, Germany.

Long-term strategy

To fund these investments, Picnic has now raised another 355 million euros with all existing shareholders: Edeka, the Bill & Melinda Gates Foundation Trust and several well-known Dutch family businesses. “This is another step in our long-term strategy that we are taking together with our shareholders. Strong growth combined with underlying profitability in mature areas gives great confidence in the future.”

In 2022, Picnic suffered a loss of almost 209 million euros on a turnover of 918.3 million, a result of high investments and slightly falling demand. The loss for 2023 would be “relatively improved”, CEO Michiel Muller told Dutch newspaper FD. Operations are already profitable in mature markets, where the company has been operating for more than two years and where it has robotised distribution centres. “The solution to the puzzle is there, you just need a bit of patience”, the CEO explained.