C1000 supermarket owners oppose switch to Jumbo, AH formats

Independent shopkeepers who operate C1000 franchises are angry at plans by the Jumbo supermarket chain to force them to convert their formats, the Financieele Dagblad reports on Thursday.


The shopkeepers say they will be forced into unnecessary costs when their franchises either become Jumbo stores or are sold on to the Co-op and Albert Heijn.
‘A large number of independent shopkeepers have approached us for advice,’ Harrie ten Have of the food industry entrepreneurs’ association Vakcentrum, told the paper.
Many of the franchise owners have just completed the switch to the C1000 Rood format and have been given three years to change to Jumbo. However, it takes six or seven years to earn back the cost of a revamp, the paper said.
Agreement
Jumbo finance director Ton van Veen told the FD no concrete agreement had yet been reached with the franchise holders on the terms and conditions of the format switch.
Last Friday, Jumbo said it is to convert some 300 C1000 stores to its Jumbo format and sell a further 136 outlets to Albert Heijn and the Co-op.
The switch will improve Jumbo’s market position and boost its buying power, the company said. Once the supermarkets have been refitted, Jumbo will have a Dutch market share of some 20%.


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