Jerónimo Martins, SGPS, S.A. (JMT.LS): Canvas Business Model

Discover the dynamic business model of Jerónimo Martins, SGPS, S.A., a leading player in the retail sector. This comprehensive overview explores the key components that drive their success, from vital partnerships and innovative activities to the cutting-edge value propositions that resonate with consumers. Dive in to uncover how this Portuguese multinational not only meets customer needs but also navigates the complexities of the market with finesse.

Jerónimo Martins, SGPS, S.A. - Business Model: Key Partnerships

Key partnerships are essential for Jerónimo Martins as they enable the company to enhance its operational efficiency and to optimize its supply chain. The following outlines the main areas of collaboration:

Suppliers of Food and Non-Food Products

Jerónimo Martins works with numerous suppliers to stock a diverse range of food and non-food products across its retail brands. In 2022, the company reported **€19 billion** in total sales, with a significant portion stemming from its collaboration with suppliers. The company's primary retail brand, Pingo Doce, sources products from over **1,500** suppliers.

The sourcing strategy emphasizes local partnerships, which not only supports local economies but also minimizes logistics costs. Approximately **50%** of Pingo Doce's products are sourced from Portugal, highlighting the company's commitment to local suppliers.

Logistics and Distribution Partners

Efficient logistics are crucial for maintaining inventory levels and ensuring product availability. Jerónimo Martins relies on strategic partnerships with logistics firms to manage a complex distribution network that spans multiple countries. The company operates **10 distribution centers**, facilitating the distribution of products to its supermarkets and cash & carry operations.

In 2022, Jerónimo Martins invested around **€25 million** in enhancing its logistics capabilities, focusing on automation and technology integration to streamline operations. Its logistics partners help achieve an average delivery time of **24 hours** across its network, ensuring that fresh products reach stores promptly.

The company has also partnered with transport service providers to manage over **100 million kilometers** in logistics operations annually.

Technology and IT Service Providers

Access to technology is imperative for the digital transformation of Jerónimo Martins. The company collaborates with several IT service providers to enhance its digital infrastructure and e-commerce capabilities. In 2023, Jerónimo Martins allocated **€15 million** for technology investments aimed at improving customer experience and operational efficiency.

Moreover, the introduction of an integrated IT system has allowed for real-time inventory management and data analytics, further optimizing supply chain processes. Partnerships with tech firms enable Jerónimo Martins to utilize advanced analytics tools, yielding a **12%** increase in operational efficiency since the system's implementation.

Partnership Type	Number of Partners	Annual Investment (€)	Key Benefits
Suppliers of Food and Non-Food Products	1,500+	N/A	Diverse product range, support local economy
Logistics and Distribution Partners	Multiple logistics firms	25 million	24-hour delivery, reduced logistics costs
Technology and IT Service Providers	Various IT firms	15 million	Improved operational efficiency, digital transformation

Jerónimo Martins, SGPS, S.A. - Business Model: Key Activities

Retail and Distribution

Jerónimo Martins operates a multi-format retail strategy, including hypermarkets, supermarkets, and cash & carry stores. As of 2022, the company reported total sales of €20.4 billion, with a growth of **7.1%** compared to the previous year. The retail segment, particularly under its Pingo Doce brand, significantly contributes to this figure. The Pingo Doce brand alone generated sales of approximately **€11.7 billion** in 2022. In addition, the company’s operations span across three main markets: Portugal, Poland, and Colombia, with a total of **3,600 stores** across these regions.

Product Sourcing and Procurement

Product sourcing and procurement are essential for maintaining a competitive edge. Jerónimo Martins focuses on local and sustainable sourcing, with approximately **40%** of products offered being sourced from local suppliers. In 2022, the company reported procurement expenses reaching **€15.5 billion**, reflecting its commitment to supply chain efficiency and sustainability. In Poland, it reported sourcing **60%** of its products locally, which is a strategic differentiation in the market.

Store Operations Management

Efficient store operations management is critical for Jerónimo Martins to enhance customer experience and maintain operational efficiency. The company employs over **100,000** employees across its various formats, emphasizing service quality and training. In 2022, Jerónimo Martins invested approximately **€200 million** in technology upgrades and training programs aimed at improving store operations. They also streamlined logistics, reporting a **15%** reduction in supply chain costs year-on-year through optimized inventory management and distribution strategies.

Key Activity	2022 Metrics	Insights
Retail Sales	€20.4 billion	7.1% growth from 2021
Pingo Doce Sales	€11.7 billion	Major contributor to total sales
Total Stores	3,600	In three markets: Portugal, Poland, Colombia
Procurement Expenses	€15.5 billion	40% of products sourced locally
Employee Count	100,000	Focus on service quality and training
Investment in Technology & Training	€200 million	Aimed at improving store operations
Supply Chain Cost Reduction	15%	Year-on-year reduction through optimization

Jerónimo Martins, SGPS, S.A. - Business Model: Key Resources

Jerónimo Martins, SGPS, S.A. relies on a variety of key resources to maintain its competitive edge in the retail and distribution sectors. These resources are critical in delivering value to the company's extensive customer base.

Extensive Distribution Network

Jerónimo Martins has established a vast distribution network that enhances its operational efficiency. As of 2022, the company operates over 3,400 stores across Poland, Portugal, and Colombia. This includes the successful brands such as Pingo Doce and Biedronka, which helps to reach millions of customers directly.

The distribution capabilities are supported by a logistics framework consisting of 20 distribution centers that manage the supply chain effectively. These centers enable the company to maintain a robust inventory system, ensuring that products are always available when customers need them.

Distribution Centers	Countries	Total Stores
20	Poland, Portugal, Colombia	3,400+

Strong Brand Portfolio

The strength of Jerónimo Martins' brand portfolio is a significant asset. The company operates several well-recognized brands, with Biedronka being the largest discount retailer in Poland. In 2022, Biedronka achieved a market share of 31% in the Polish grocery market. Pingo Doce has also shown resilience, holding a market share of approximately 16% in the Portuguese market.

The brands not only enhance the company's visibility but also contribute to the loyalty of the consumer base. Jerónimo Martins invests heavily in marketing and promotions, with spending reaching approximately €120 million in 2022, thereby increasing brand awareness and customer retention.

Brand	Market Share (2022)	Marketing Investment (2022)
Biedronka	31%	€120 million
Pingo Doce	16%	€120 million

Experienced Management Team

The management team at Jerónimo Martins plays a critical role in steering the company's strategic direction. The team comprises seasoned executives with extensive experience in retail and consumer goods. For instance, the CEO, Pedro Soares dos Santos, has been leading the company since 2018 and has a background in managing large retail chains effectively.

The collective experience of the management team, comprising over 150 years in retail operations and strategic planning, allows the company to respond adeptly to market changes and consumer trends. This strategic leadership has been crucial in achieving a revenue growth of approximately 8.5% year-on-year, culminating in total revenues of about €21 billion in 2022.

Management Team Experience	CEO	Revenue Growth (2022)
150+ years	Pedro Soares dos Santos	8.5%

Jerónimo Martins, SGPS, S.A. - Business Model: Value Propositions

Jerónimo Martins is a prominent player in the retail sector, primarily operating in food distribution. The company's value propositions are designed to appeal to a wide array of customers while setting it apart from competitors.

High-quality products at competitive prices

Jerónimo Martins focuses on offering a diverse range of high-quality products across its brands, including Pingo Doce, a leading supermarket chain in Portugal. In 2022, the company's revenue reached approximately €20.2 billion, with a significant portion attributed to its grocery segment.

The supermarket chain's commitment to quality is illustrated by its robust private label offerings, which account for around 35% of total sales. These products are often priced lower than national brands, providing customers with greater value. The company's cost leadership strategy further enables it to maintain competitive pricing while ensuring product quality.

Convenient store locations

Jerónimo Martins has strategically positioned its stores to enhance customer convenience. As of the end of 2022, the company operated over 4,600 retail locations across Portugal, Poland, and Colombia. This wide network of stores ensures that customers can easily access their products, with 88% of the Portuguese population living within 10 kilometers of a Pingo Doce store.

The brand also employs a multi-format strategy, including hypermarkets, supermarkets, and discount stores, allowing it to cater to different shopping preferences. For instance, the Biedronka brand in Poland operates more than 3,300 stores, further solidifying Jerónimo Martins’ market presence in the region.

Strong customer service focus

Customer satisfaction is a core focus of Jerónimo Martins, evidenced by its comprehensive customer service initiatives. In 2021, the company achieved a customer satisfaction score of 87% in Portugal, demonstrating its commitment to enhancing the shopping experience. The introduction of digital solutions, such as an online shopping platform and mobile app, has further improved customer engagement, with over 1 million active users per month on its digital channels.

The company also invests in employee training to ensure staff are equipped to provide exceptional service. In 2022, Jerónimo Martins increased its investment in employee training programs by 15%, reinforcing its commitment to service excellence.

Value Proposition	Description	Key Metrics
High-quality products	Diverse range of high-quality groceries and private label items	€20.2 billion in total revenue 35% of sales from private label
Competitive prices	Cost leadership strategy ensuring pricing lower than national brands	Average price index 10-15% lower than competitors
Convenient locations	Wide network of retail locations across multiple formats	Over 4,600 stores in Portugal, Poland, and Colombia 88% of Portuguese population within 10 kilometers of a store
Strong customer service	Commitment to high customer satisfaction and staff training	87% customer satisfaction score in 2021 €1 million investment in training programs

Through these value propositions, Jerónimo Martins not only addresses customer needs but also differentiates itself from its competitors, enhancing its market position across various segments. The combination of product quality, accessibility, and customer service forms a solid backbone for the company’s overall strategy.

Jerónimo Martins, SGPS, S.A. - Business Model: Customer Relationships

Customer relationships are vital for Jerónimo Martins, especially in the highly competitive retail sector. The company's strategies focus on fostering loyalty and engagement through various methods.

Loyalty programs

Jerónimo Martins operates the Cartão Família loyalty program in its supermarket chain Pingo Doce. As of 2022, over 6 million customers were enrolled in the program. It offers personalized discounts and exclusive promotions, which can lead to an increase in customer retention. The participation in loyalty programs resulted in a sales increase of approximately 10% year-on-year. Furthermore, members of the loyalty program generated around 70% of total sales in Pingo Doce stores.

In-store customer assistance

In-store customer assistance is a top priority for Jerónimo Martins. The company employs approximately 50,000 staff members across various locations, providing personal assistance and customer service. Pingo Doce stores have trained personnel available in every store to assist customers, which contributes to a customer satisfaction score of 85% based on annual surveys.

Digital engagement through apps

Jerónimo Martins has significantly invested in digital engagement strategies. The Pingo Doce mobile application, launched in 2021, saw over 1.5 million downloads within the first year. The app provides users with personalized promotions, shopping lists, and the ability to track loyalty points. Additionally, the app contributes to approximately 15% of online sales transactions. In 2023, the digital sales channel accounted for about 25% of total sales, highlighting the effectiveness of digital engagement.

Customer Relationship Strategy	Details	Current Metrics
Loyalty Programs	Cartão Família program	6 million enrollees, 10% sales increase
In-store Assistance	Staff support in every store	50,000 employees, 85% satisfaction score
Digital Engagement	Pingo Doce app usage	1.5 million downloads, 25% digital sales

Jerónimo Martins, SGPS, S.A. - Business Model: Channels

Jerónimo Martins, SGPS, S.A. utilizes a range of channels to effectively communicate and deliver its value propositions to customers, thereby optimizing customer experience and operational efficiency.

Physical Retail Stores

As of Q3 2023, Jerónimo Martins operates approximately 4,564 stores across various formats including Pingo Doce, Recheio, and Huvepharma in Portugal, Poland, and Colombia. The Pingo Doce chain accounts for around 23% of the Portuguese grocery market share.

The total sales revenue from physical retail for Jerónimo Martins reached €20.5 billion in 2022. The brick-and-mortar stores offer customers a wide range of fresh produce, groceries, and household items.

Online Shopping Platforms

In 2023, Jerónimo Martins expanded its e-commerce presence, reporting that online sales accounted for approximately 5% of total sales in Portugal and Poland. The online shopping platform facilitated €1.02 billion in total sales for the year.

Additionally, the company initiated partnerships with local delivery services, improving last-mile logistics and enhancing customer satisfaction. The online shopping platform provides an extensive catalog of products, including exclusive online discounts designed to drive customer engagement.

Mobile Applications

The mobile application for Pingo Doce has gained significant traction, with over 1.5 million downloads as of October 2023. The app offers users various functionalities including shopping lists, digital coupons, and loyalty rewards programs. The app-driven purchases contributed to about 15% of total online sales in the last quarter.

Moreover, Jerónimo Martins reported a customer retention rate of 60% from app users, showcasing the impact of mobile platforms on customer loyalty. The seamless integration between the app and physical stores has enhanced the omnichannel experience for consumers.

Channel Type	Number of Outlets	Sales Revenue (in € Billion)	Market Share (%)	Online Sales (%)
Physical Retail Stores	4,564	20.5	23	N/A
Online Shopping Platforms	N/A	1.02	N/A	5
Mobile Applications	N/A	N/A	N/A	15

Jerónimo Martins, SGPS, S.A. - Business Model: Customer Segments

Individual Consumers

Jerónimo Martins primarily targets individual consumers through its retail outlets, namely Pingo Doce in Portugal and Biedronka in Poland. As of 2022, Biedronka was the largest food retailer in Poland with a market share of approximately 27.4%. Pingo Doce holds about 21% of the Portuguese grocery market. The company's focus on offering competitive pricing and a broad range of products appeals to individual shoppers, who prioritize value and convenience.

Families and Households

The family segment is a key target for Jerónimo Martins, as both Pingo Doce and Biedronka cater to household needs by providing a variety of food and non-food items. In 2021, Biedronka reported an average basket size of around €20 per shopping trip, indicating that families are frequent buyers. Pingo Doce similarly promotes family-oriented promotions, highlighting bulk purchasing and multi-buy discounts. The company has seen a steady growth in sales; in 2022, Pingo Doce achieved sales of approximately €3.2 billion, mainly supported by family shopping behaviors.

Urban and Suburban Residents

Jerónimo Martins strategically locates its stores to appeal to both urban and suburban residents. As of mid-2023, the company operated over 3,500 stores in Poland, predominantly in urban areas, which account for approximately 90% of its retail locations. Conversely, Pingo Doce has expanded its presence in suburban regions in Portugal, with initiatives aimed at enhancing accessibility for families in lesser-served areas. The growing population in urban centers contributes to heightened consumer spending, with urban households spending an average of €4,500 annually on groceries as of 2022.

Customer Segment	Key Characteristics	Market Data
Individual Consumers	Focus on value and convenience	Market share: Pingo Doce 21%, Biedronka 27.4%
Families and Households	Bulk purchasing, multi-buy discounts	Pingo Doce sales: €3.2 billion in 2022, Average basket size: €20
Urban and Suburban Residents	Store locations in urban/suburban areas	Biedronka: 3,500 stores, Urban households spend €4,500 annually on groceries

Jerónimo Martins, SGPS, S.A. - Business Model: Cost Structure

The cost structure of Jerónimo Martins, SGPS, S.A. is a critical aspect that outlines how the company manages its operational expenses while aiming to optimize profitability. Below are the key components of the cost structure:

Store Operation Costs

Store operation costs are a significant segment of Jerónimo Martins' overall expenditure. As of 2022, the company reported that its store operating costs amounted to approximately €2.35 billion. This includes expenses related to employee salaries, utilities, rent, and maintenance of retail outlets.

Procurement and Supply Chain Expenses

The procurement and supply chain expenses are essential for ensuring that Jerónimo Martins maintains an efficient flow of goods. In 2022, these expenses accounted for around €3.10 billion, with logistics, warehousing, and supplier payments contributing majorly to this figure. The company operates a network of suppliers, and its focus on sustainability also influences its procurement strategies.

Cost Category	2022 Amount (in € billion)
Store Operation Costs	2.35
Procurement and Supply Chain Expenses	3.10
Total Cost Structure	5.45

Marketing and Advertising Investments

Marketing and advertising investments are key in building brand awareness and driving sales. For the fiscal year 2022, Jerónimo Martins dedicated approximately €200 million to marketing efforts across its various retail brands. This spending included digital marketing campaigns, promotions, and traditional advertising methods aimed at enhancing its market presence.

In summary, the total cost structure for Jerónimo Martins reflects an extensive investment in operational efficiency, supply chain management, and brand positioning, summing up to a significant financial commitment that drives its business model. Each cost component plays a vital role in the company's overall strategy for growth and profitability.

Jerónimo Martins, SGPS, S.A. - Business Model: Revenue Streams

Retail Sales

Retail sales are a significant source of revenue for Jerónimo Martins, accounting for approximately 88% of its total revenue. In 2022, the company reported retail sales of around €19.5 billion. This revenue is primarily derived from its supermarket chains, including Pingo Doce and Recheio, which operate in Portugal and Poland.

Private Label Product Sales

Private label products represent a growing segment, contributing roughly 26% of total sales. In 2022, private label sales stood at about €4.5 billion. The company's strategy emphasizes quality and competitive pricing in this category, appealing to cost-conscious consumers.

Online Sales Revenue

Online sales are increasingly important, particularly in the wake of the COVID-19 pandemic. In 2022, Jerónimo Martins generated approximately €1 billion from e-commerce ventures, representing a year-over-year growth of 50%. The digital platforms enhance customer reach and convenience, driving a shift in consumer shopping habits.

Revenue Stream	Percentage of Total Revenue	2022 Revenue (€ billion)	Year-over-Year Growth (%)
Retail Sales	88%	19.5	N/A
Private Label Products	26%	4.5	N/A
Online Sales	N/A	1.0	50%