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.



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

Amazon associates picking and packing customer orders at the Amazon fulfilment centre at Hemel Hempstead, Hertfordshire. Photo:  Nick Ansell/PA Wire

Shoppers are expected to spend almost £1billion online as retailers unleash another set of bargain deals on Cyber Monday.

Ian White, managing director at Beckett Financial Services.

Beckett Financial Services has been ranked as one of the UK’s top 100 independent financial advisers by industry magazine New Model Adviser.

Josh Eames and Ryan Scillitoe of Perrywood Garden Centre and Nurseries in Tiptree who have have raised more than £5,000 for charity through a 1,000-mile cyclinge challenge.

Josh Eames and Ryan Scillitoe from Perrywood Garden Centre and Nurseries in Tiptree have raised more than £5,000 for charity through a 1,000 mile cycle challenge.

The Leading Lives team receive their tropy at the Social Enterprise UK Awards in London.

Ipswich-based Leading Lives has been named Health and Social Care Social Enterprise of the Year at the Social Enterprise UK Awards.

The Hot Off The Press premises inTacket Stret, Ipswich, which the company has vacated after 25 years.

A printing company which has operated from the centre of Ipswich for 25 years has relocated – to a purpose-built log cabin in the owner’s garden.

Elaine and Nigel Bowen of Vanguard Communications.

Two businesses which receive support from Suffolk enterprise agency Menta have received Small Business Sunday awards from entrepreneur and former BBC Dragons’ Den star Theo Paphitis.

Wayne Seddon from The Bridge House in London receives his Adnams Pub of the Year award from chief operating officer Karen Hester.

Southwold-based Adnams has named The Bridge House, near London’s Tower Bridge, as its Pub of the Year.

Georgi Rollings, left, and Emma Lawrence of Starfish Accounting.

An Ipswich based provider of online company secretarial software has reached the landmark milestone of having 10,000 users.

Robert Hughes, managing director of Hughes Electrical, and Andy Yallop, store manager, at the company's new branch in Bury St Edmunds.

Hughes Electrical has opened the doors of its new store in Bury St Edmunds following a £200,000 investment which has also created six new jobs, doubling the size of its workforce in the town.

A file picture of the Sanofi factory in Haverhill.

More than 50 jobs are to be axed at the Haverhill site of pharmaceutical group Sanofi.

Most read

Most commented

Topic pages

Local business directory

Our trusted business finder

Property search

e.g. Oxford or NW3
Powered by Zoopla

Digital Edition

Read the East Anglian Daily Times e-edition today E-edition

Great British Life

Great British Life
MyDate24 MyPhotos24