Nice write-up! Jumbo is undoubtedly a cheap, high-quality company. A local champion I guess. I'm just curious if you have looked at their competitor/peer, AS Company $ASCO. They have even more cash, but are much smaller. I own it and will write about them; otherwise, there's a good overview here: https://chartswar.com/tag/%CE%B1%CF%83%CE%BA%CE%BF/ (use translate).
Cool, I haven't looked into this competitor. I am looking forward to your write-up about the company. Always great to learn more about competitors and see different angles. Let me know when it is out!
The stores definitely feel like a mouse trap. Like Ikea, you have to follow a path to the exit.
Jumbo has bargaining power and directly buy from Chinese manufacturers. Margins widen also by becoming the owner of the store (no more rent) and franchises pay for overhead in the distribution centers.
Nice write-up! Jumbo is undoubtedly a cheap, high-quality company. A local champion I guess. I'm just curious if you have looked at their competitor/peer, AS Company $ASCO. They have even more cash, but are much smaller. I own it and will write about them; otherwise, there's a good overview here: https://chartswar.com/tag/%CE%B1%CF%83%CE%BA%CE%BF/ (use translate).
Cool, I haven't looked into this competitor. I am looking forward to your write-up about the company. Always great to learn more about competitors and see different angles. Let me know when it is out!
As someone who has visited their stores, Jumbo in my opinion has one of the best customer experiences and mouse traps going.
Their business model is largely around buying low ticket, high margin goods and selling them in bulk allows for their unheard of retail margins.
Just me or anyone else shared this experience?
The stores definitely feel like a mouse trap. Like Ikea, you have to follow a path to the exit.
Jumbo has bargaining power and directly buy from Chinese manufacturers. Margins widen also by becoming the owner of the store (no more rent) and franchises pay for overhead in the distribution centers.
Someone else on reddit shared my thesis in r/AskBalkans and they all have a similar experience, just like you. https://www.reddit.com/r/AskBalkans/comments/1qb9nov/jumbo_stores/
Really interesting on others comments, this one sums up the business model:
They managed to recreate both TEMU and doomscrolling in real life. It's incredible!