Jumbo Supermarket Expansion in Belgium: Strategy, Consumer Behavior, and Market Impact

Since its entry into the Belgian market in 2019, Jumbo, the Dutch supermarket chain, has significantly impacted the landscape. With ambitious expansion plans in Belgium and strategic market adjustments, Jumbo has quickly gained market share. This article delves into Belgian consumer dynamics, Jumbo’s adaptations, and the competitive implications.

Belgian Consumers and Their Response to Jumbo

Belgian consumers are known for their price sensitivity and high-quality expectations. Jumbo’s low prices and high product quality have resonated well with them. According to a GfK study (2023), 78% of Belgian consumers consider price a crucial factor when choosing a supermarket. Jumbo’s “lowest price guarantee” strongly attracts this audience. Additionally, Belgian consumers value freshness and sustainability, and Jumbo’s “Seven Certainties” ensure freshness and quality. The inclusion of local and organic products meets the growing demand for sustainable options.

Jumbo supermarket expansion in Belgium, strategy

Jumbo has strategically localized its product assortment to include a wide range of Belgian products, enhancing its appeal among local consumers. The use of local dialects and sponsorship of local events has helped Jumbo build a strong connection with Belgian consumers. Additionally, modern store layouts and well-trained staff have improved customer satisfaction, which is essential in the competitive Belgian market.

Competitive Analysis

The Belgian retail market is dominated by major players such as Colruyt, Delhaize, Carrefour, Lidl, and Aldi. Colruyt, with a market share of 25%, is the market leader. Jumbo competes by offering similarly low prices and improving the shopping experience. Delhaize holds a 21% market share and focuses on premium segments, while Jumbo offers high-quality products at lower prices. Carrefour, with an 18% market share, offers a broad assortment, and Jumbo focuses on a better price-quality ratio. Lidl and Aldi, with market shares of 10% and 9%, are known for low prices, but Jumbo offers a broader assortment and competes on both price and quality.

Franchising and Growth Ambitions

Jumbo has ambitious growth plans in Belgium, aiming to open fifty stores by the end of 2025. The company is heavily investing in franchising to achieve this growth. In 2024, three stores were franchised, bringing the total number of franchise stores to sixteen. Franchising enables Jumbo to expand more quickly and increase local engagement.

Figures and Performance Until May 2024

As of May 2024, Jumbo has opened 33 stores, mainly in Flanders, with a revenue of 450 million euros in 2023, a 15% increase compared to 2022. Jumbo’s market share in Belgium is currently around 5.5%. This figure is expected to rise as Jumbo continues to expand its presence.

Price War and Market Impact

Jumbo’s strategy to guarantee the lowest prices has intensified the price war in the Belgian retail market. This has forced other retailers to lower their prices and offer more promotions, resulting in a dynamic market where consumers benefit from sharper prices and better deals.

Conclusion

Jumbo has quickly positioned itself as a significant player in the Belgian retail market. By strategically adapting to local preferences, focusing on low prices and high product quality, and pursuing ambitious growth plans, Jumbo has built a loyal customer base. The coming years will be crucial for Jumbo to consolidate its position and further increase its market share while continuing to transform the Belgian retail sector.