Partly Cloudy

Partly Cloudy

max temp: 11°C

min temp: 8°C

ESTD 1874 Search

Retail: Sainsbury’s to back return to the UK by discount brand Netto

16:27 20 June 2014

The Netto discount supermarket brand is to return to the UK.

The Netto discount supermarket brand is to return to the UK.

Archant © 2006

Discount supermarket Netto is to return to the UK as part of a joint venture with Sainsbury’s that will take on booming rivals Aldi and Lidl.

The Danish supermarket, which left the UK in 2010, will open 15 stores in the next year in a deal funded by Netto owner Dansk Supermarked and Sainsbury’s.

Sainsbury’s said the move allowed it to enter the fast-growing discount sector, worth an estimated £10 billion a year, without diluting the established reputation it has built up at its supermarkets, convenience stores and online.

The big four supermarkets Sainsbury’s, Morissons, Asda and Tesco are in the middle of a price war as their market shares are squeezed between discount retailers such as Aldi and Lidl and upmarket rival Waitrose.

Tesco, Sainsbury’s and Morrisons all saw their market shares slip in the 12 weeks to May 25, compared to a year ago, according to till-roll figures from Kantar Worldpanel.

But Lidl hit a record market share of 3.6% driven by its highest ever year-on-year growth of 22.7% while rival Aldi grew 35.9% over the year and retained its record 4.7% market share.

Sainsbury’s and Dansk Supermarked will both plough £12.5million into the new Netto operation, and each partner expects to book a post-tax loss of between £5m and £10m up to March 31, 2015.

The first new Netto store will sell a range of fresh food as well as incorporate an in-house bakery.

Mike Coupe, Sainsbury’s chief executive designate, who takes over from long-serving boss Justin King next month, said: “This joint venture provides a great opportunity for us to gain exposure to the high-growth discount market for the first time in partnership with Dansk Supermarked, whose expertise and values are a strong complement to our own.”

When Netto left the UK market nearly five years ago it sold its 198 stores to Asda. The business was first established in the UK in 1990.

The new stores will sell 2,000 products, similar to Aldl and Lidl and up from the 600 stocked at the time of Netto’s sale.

Search hundreds of local jobs at Jobs24


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Sandy Jackson - Mark Westley Photography

British Gas has been forced to backtrack after repeatedly billing a 91-year-old great-grandmother for hundreds of pounds more than she owed.

Terry Hunt, editor of the East Anglian Daily Times, left, and Boshor Ali, chairman of the Bangladeshi Support Centre (BSC), right, with other supporters of the Suffolk BME Business Awards from Ipswich Borough Council, Suffolk Chamber of Commerce, the University of Suffolk and the BSC.	
Photo: Nigel Brown

More than 40 nominations have been received for the inaugural Suffolk BME (Black and Minority Ethnic) Business Awards.

Tim King, group fleet manager at Turners (Soham), left, takes delivery of the firm's newest truck from Eddie Hennessy, regional manager of DAF Trucks UK, representing regional dealership Chassis Cab. 
Photo: Keith Mindham Photography

Suffolk-based logistics company Turners (Soham) Ltd has reported increased annual revenues and profit, and says it is “well placed” for further success despite competitive market conditions.

Ian Thoroughgood, associate director at Grant Thornton in Ipswich, with Jonathan Agar, chief executive of Birketts.

Business advisers firm Grant Thorton is to unveil its 15th “Suffolk Limited” report next month on how the county’s leading businesses have performed over the past year.

Colleagues at Care UK's Peninsula NHS Treatment Centre.

Colchester-based Care UK is celebrating after one of its nine NHS treatment centres across the country achieved an overall “Outstanding” rating from the Care Quality Commission (CQC).


Show Job Lists

Most read

Most commented

Topic pages


Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24