Dutch retailer Jumbo Supermarkten will look overseas for growth opportunities if it becomes too difficult to increase its share of its domestic market.
In 2009, Jumbo bought rival Dutch chain Super de Boer in a deal worth EUR552.4m (US$779m), which took its market share to 10%.
In an interview with Dutch newspaper De Telegraaf last week, founder Karel van Eerd said that that Jumbo’s future may lie overseas.
When contacted by just-food yesterday (5 September), the retailer said it would consider investing in foreign markets as part of its expansion plans should it be unable to grow its business in the Netherlands.
A spokesperson told just-food: “Jumbo Supermarkets has the ambition to double its market share every five years. With the acquisition of Super de Boer we’ve now got a 7.5% share. And when the integration process is realised we will have a share of 10%. In the future it is possible to double that market share, but it will be harder to double from 20% to 40%. If at that moment we have still got the ambition to grow, we have to go to foreign countries. For now there’s still a lot to do in the Netherlands.”
She would not comment on which foreign markets Jumbo could look to enter.
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Last month, Jumbo said sales reached EUR1.2bn (US$1.76bn) in the first six months of the year, a 35% increase on the same period in 2010.
Jumbo said much of the rise in sales was thanks to the conversion of almost 100 Super de Boer stores.