Jumbo announces partnership with rapid grocery delivery firm Gorillas; Jumbo revenue hits €9.9 billion
Jumbo will collaborate with flash delivery service Gorillas in the Netherlands and the Flanders region of Belgium. The supermarket chain will supply a large part of its range to the start-up, including private label products and products from the La Place brand.
Gorillas is active in eleven Dutch cities and two Belgian municipalities. Customers in those areas can order the Jumbo products using the Gorillas app, and have them delivered to their home by bicycle courier in as little as ten minutes.
Jumbo customers in some cities will also have the option of having Gorillas deliver groceries ordered directly from Jumbo. The companies also plan to advertise together and make use of each other's expertise. The two companies may also develop new market areas together.
Jumbo indicates that the collaboration, which will start this quarter, will initially run for a few years. Financial details were not disclosed.
Gorillas recently entered into similar collaborations abroad. The German company also works together with Tesco in the United Kingdom, and with Casino in France.
Jumbo revenue grows to €9.9 billion, missing expectations
Jumbo also announced an increase in sales, market share, and online grocery sales as part of its year-end report. Revenue rose by two percent to 9.9 billion euros, though analysts expected 10 billion euros in sales. Online sales rose by 30 percent to 650 million euros, but its home delivery service is still loss-making. Dutch market share rose by a half-percent to 22 percent.
It’s La Place cafe chain posted “downright disappointing” figures, said Ton van Veen, the companies financial leader. La Place’s turnover rose by 4 percent to 52 million euros. "Before the coronavirus crisis, that was 200 million euros on an annual basis." On the upside, La Place employees were allowed to work at Jumbo, which helped prevent layoffs at the company.
Reporting by ANP