Connect with us

Business

‘Jumbo Express’ Closes 3 Stores Amid Challenges in Retail Sector

Published

on

'Jumbo Express' Closes 3 Stores Amid Challenges in Retail Sector
Image source: Le Mauricien

The start of the year has proven difficult for Jumbo, a major retailer, as it has permanently shut down three of its Jumbo Express supermarkets located in Manhattan (Curepipe), Orchard (Quatre-Bornes), and Windsor (Beau-Bassin). This closure has left many residents in these areas disappointed, as they had grown accustomed to the convenience offered by these strategically located, neighborhood supermarkets.

The decision to close these stores was not taken lightly.

According to company executives, multiple factors contributed to this outcome, primarily issues related to accessibility and parking.

In Beau-Bassin, for instance, the lack of parking options posed a significant challenge for customers.

Additionally, the aging infrastructure of the shopping centers housing these supermarkets played a critical role in the closures.

Industry experts recognize that several key components must come together for a supermarket to thrive.

These include a prime location, a diverse product range, high-quality and fresh products, competitive pricing, excellent service, effective store layout, innovation, and solid marketing strategies.

Among these, the availability of ample, easily accessible parking is crucial to attracting a steady flow of customers—especially those on tight schedules or those making bulk purchases.

Customers are typically discouraged by the prospect of spending excessive time searching for parking, leading them to seek alternatives elsewhere.

Insufficient parking can thus translate into stagnant or declining sales figures.

Along with parking challenges, Jumbo also capitalized on the expiration of lease agreements with the landlords of the affected shopping centers to officially close the stores.

A retail expert noted, “These aging shopping centers no longer hold much appeal for optimal commercial activity.

Developed in the 1990s, they are facing significant maintenance issues, with upkeep currently relegated to bare minimum standards, leading to a long-term decline in attractiveness, not to mention parking concerns.”

At the Orchard shopping center in Quatre-Bornes, customers have expressed frustrations regarding the difficulties they encounter in finding parking spaces.

At the Windsor shopping center in Beau-Bassin, office occupants monopolize available parking spots from 9 a.m. onward, leaving little for supermarket customers.

As retail professionals succinctly say, “no parking = no business.”

Additionally, the underground parking at the Manhattan store is poorly lit, raising safety concerns for customers.

The combination of these factors has been compounded by the rise of competitors such as Winners and Intermart, which have attracted customers from urban areas.

Consequently, Jumbo has experienced a downturn, with diminishing profitability from these three locations.

The closure of these stores is also expected to impact Jumbo’s overall revenue, as these outlets collectively generated an estimated turnover of approximately Rs 500 million.

On a more positive note, the remaining two Jumbo Express stores—situated in Moka and Pasadena (Flic-en-Flac)—are not affected by this latest decision.

The Pasadena location enjoys a prime spot in the heart of Flic-en-Flac, providing ample parking and attracting local customers, weekend visitors, and tourists in the coastal region.

The Moka store is similarly well-positioned, with abundant parking and well-maintained facilities, ensuring an appealing shopping experience.

Furthermore, Moka is experiencing significant residential growth, particularly with the development of the Smart City project and numerous businesses setting up new offices in the area, potentially bringing in additional customers for the supermarket.

Employees from the three closed stores will not face job losses; instead, approximately 75 workers will be redeployed to other locations within the Jumbo group.

Additionally, the Jumbo brand is in the process of rebranding under the Carrefour name.

If all goes to plan, the group anticipates the opening of two Carrefour hypermarkets in Phoenix and Riche Terre, as well as two Carrefour City supermarkets in Moka and Pasadena by the end of 2025.

Source: Le Mauricien

Spread the News
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *