Dutch retailer Jumbo Group has decided to sell over 130 stores to two buyers – local rivals Ahold and Coop – as it integrates C1000, the chain it acquired last year, into the business.
Jumbo plans to sell 82 outlets to Ahold for EUR290m (US$384.1m) and 54 shops to Coop for an undisclosed sum.
The transactions are a result of conditions Dutch competition authorities imposed on Jumbo’s acquisition of C1000 and the deals remain subject to their approval.
Jumbo CEO Frits van Eerd said the retailer had “looked carefully” at its network before deciding which stores to offload. He added: “We are convinced that the proposed transactions with Ahold and Coop are best for all the parties involved.”
Reports in the Netherlands had claimed Jumbo was also looking to sell more stores to another local retailer, Sligro Food Group. However, speaking to just-food, a spokesperson brushed off the reports and said there were no plans to offload more outlets.
Jumbo now plans to convert the existing C1000 stores to its namesake banner. “The Jumbo formula was characterized by the largest range, best service and the lowest price. C1000 also has a number of key elements that are strong. Consider the local focus of the entrepreneur, the corresponding range of structure and position in meat. We bring the strengths of both formulas now together under the Jumbo brand. This will provide a tremendous boost to an even better Jumbo formula,” van Eerd said.
The acquisition of C1000, announced last year, made Jumbo the second-largest retailer in the Netherlands, behind Ahold.
A spokesperson for Ahold said the acquisition of 78 C1000 and four Jumbo stores would “complement” its existing outlets.
“The great thing about this transaction for us that we can really fill in the white spots in the Albert Heijn network,” a spokesperson told just-food. “These are very good stores, at very good locations.”
Coop will have 266 outlets in the Netherlands if its deal with Jumbo goes through. “We are extremely pleased with this acquisition. It is an opportunity and represents a new milestone for Coop. This also sees Coop break the one billion euros turnover limit,” MD Fred Bosch said.
Click here for our analysis of Jumbo’s acquisition of C1000, published in November.