Soon after revealing they would start working together closely, Dutch chains Jumbo and Hema have reached an agreement on an intensified commercial cooperation in the Benelux. Over the next three years, Jumbo will take over the leases of fifteen Hema branches in major Dutch cities, and those of two Belgian Hema stores. In addition, all Jumbo supermarkets will start to sell Hema products.
Joint shop concept
At the beginning of November, both retailers had already announced that they were going to work closely together in the Netherlands and Belgium, but details were not yet made public. Now they announced that Jumbo is indeed taking over Hema’s buildings, mainly in city centre locations. The press release does not mention exactly which shops are involved, but a later statement confirmed there the deal involves fifteen Dutch and two Belgian stores.
In addition, the partners will develop a joint retail concept at six station locations, for which Jumbo will supply the food range. In addition, all Jumbo supermarkets in the Netherlands and Belgium will gradually introduce Hema products. Moreover, Hema will join the cycling and skating teams of Team Jumbo-Visma as a co-sponsor for a period of at least four years.
Reduce debts
The transition of the locations will take place in phases: first of all, Hema wants to open new stores in the relevant catchment areas, according to its most recent store concept. Hema’s retail network therefore remains intact and the retailer does not expect any job losses. The amount that Jumbo pays for the acquisition of the stores will be used to reduce Hema’s debt. The Hema range to be launched in the supermarkets over the next six months includes cooking utensils, tablecloths, tea towels, glasses, party and seasonal items and candles. This step fits in with Hema’s strategy of growing into a global brand.
“It is wonderful that two strong Dutch brands are going to reinforce each other in this way. This offers good prospects for both of us to expand our store network”, says Jumbo CFO Ton van Veen. “Our Dutch brands fit well together and there is a clear connection between Hema and Jumbo. Our cooperation offers endless possibilities, from combination stores to selling Hema products through the Jumbo stores”, Hema CEO Tjeerd Jegen agrees.
