Jumbo enters the online fray in the Netherlands
Retailer to offer different collection models
Jumbo has said that as it grows availability of its collection points, it will be able to offer shoppers three fulfilment options: collection points in-store, collection points added to existing stores and standalone pick up points in Raamsdonkveer, Nieuwegein, Schijndel, Tilburg and two in Utrecht. Jumbo has said that it will be adding further pick up points, with ‘several dozen’ said to be opened before the end of 2014, with more scale to be added in 2015 as franchisees begin to offer the service. Depending on the time that shoppers want to collect their orders, the service will either be available for free or at a cost of €3.
Ordering to be made simple
Jumbo said that it has tried to make ordering as simple as possible. To this end shoppers can find inspiration in recipes and purchase all the ingredients needed ‘with one click’, while they can also choose how many pieces of fruit they want to buy, either by weight or number. Jumbo said that shoppers can also buy from a range of 20,000 SKU’s, which in conjunction with the collection points and different fulfilment options means the service offers ‘the lowest price, the biggest range and best service’.
Our view… (IGD)
Online has become an increasingly competitive channel in the Netherlands following Albert Heijn’s growth in the last 18 months and as smaller competitors have added the service too. The growth of discounters and limited space for the addition of new stores has encouraged retailers to trial the service as it enables them to add scale – with standalone pick up points – and differentiate themselves from Aldi and, especially, Lidl.
The entry of Jumbo into the channel will create a new impetus, help build shopper awareness of the channel, the benefits it offers and help drive growth for the channel as a whole. For Albert Heijn and others who entered the channel first, Jumbo could win back shoppers who buy from them in-store, but were previously unable to buy from online. Also, it removes a point of difference for Jumbo’s rivals, forcing them to compete on other elements of their strategy. Together, these elements are likely to increase the competitive pressures in the Netherlands’ grocery market, which shoppers are expected to benefit from.
Source: igd.com
