Dutch retailer Jumbo Supermarkten is subcontracting their private label management to US broker Daymon Worldwide. More importantly, they’ve asked their own brand suppliers to pay a portion of the costs.
It is anticipated Daymon Worldwide will boost Jumbo Supermarkten’s Private Brand penetration to 40% and facilitate management of the process, which the retailer claims will benefit its suppliers. The benefit comes at a cost though, as the retailer asks its Private Brand suppliers to pay 3% of sales. Effected suppliers are reported to be furious and claim they can’t cover a 3% increase.
Suppliers for Jumbo’s C1000 banner are also reported to be affected. Existing contracts are not affected by the change. Seventeen Daymon employees will be placed at Jumbo headquarters.