Declan Fennell, Manager, Bord Bia Amsterdam
As retailers enter the final weeks of trading they will reflect upon a busy year where price and value for money were key considerations for the Dutch consumer. Despite the economic slowdown, the Dutch retail sector will conclude on a positive note with industry sources suggesting a 3-5% growth for 2009. However, over the last number of weeks a number of tell-tale signs have emerged to suggest that a new tempo will enter Dutch retailing as rival retailers battle it out for market share. So what are the clues?
Jumbo acquires Super de Boer
In early November Jumbo (5% market share) emerged as the successful bidder of the Super de Boer chain (8%). As part of the takeover deal, Jumbo will retain 200 of the 305 Super de Boer stores and sell 80 stores to the Schuitema Group/C1000 (14%), the remaining stores will be sold to other retailers. The addition of 200 new store locations will provide a significant boost to the Jumbo chain allowing them to double their market by circa 10-11%.
New central buying group
In a separate development Jumbo and C1000 have agreed to form a strategic alliance with regards to central buying. From January 2010, a new buying group; Bijeen (‘together’) will come into play and will include a consortium of buyers from both Jumbo and C1000. Jumbo will withdraw their membership from Superunie at the end of this year. With a combined market share of approximately 25%, Bijeen will become a formidable player as they compete alongside Albert Heijn (33%) and Superunie (27%).
Albert Heijn – expansion and diversification in sight
Over the last number of weeks Albert Heijn has made a series of interesting announcements with regards to its future growth strategy. Firstly they have signalled their intention to establish a retail presence in the Belgium market. This is in addition to their plans to increase the number of XL stores (3600m2) in the Netherlands from 30 to 50 in the next two years. With a clear focus on differentiating themselves as the number one retailer in the Netherlands they are also planning to diversify into non-food products. As of early 2010, Albert Heijn XL stores will feature a non-food department which will include new lines such as household fabrics and clothing. In smaller stores the existing space used for non-food items will be used more effectively.
In what makes a striking resemblance to a David and Goliath relationship, it is inevitable that Jumbo and Albert Heijn will come head to head in 2010. Industry sources suggest that this battle will manifest itself into a price war.