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Sainsbury's in joint venture to bring Netto back to UK

Danish discounter Netto is to make a return to the UK as part of a joint venture with SainsburyÂ’s.


Sainsbury's in joint venture to bring Netto back to UK

Danish discounter Netto is to make a return to the UK as part of a joint venture with SainsburyÂ’s.

The joint venture will see a trial format of 15 Netto stores open by the end of 2015 with the first stores launching in the North of England later this year.

The two retailers said the new-look Netto stores will benefit from Netto parent company Dansk Supermarked’s expertise in systems, infrastructure and low-cost operations and Sainsbury’s UK grocery, product sourcing and property capability.

If the trial proves successful, the new format will be rolled out across the country.

Sainsbury's and Dansk Supermarked will initially invest £12.5 million each in the joint venture.

Dansk Supermarked chief executive Per Bank said: "It’s great to be bringing a new twist to the rapidly-growing UK discount sector. We’ll offer market-leading value to customers with the freshness and innovation that customers rightly associate with Denmark.

"The discounter experience, operating model and systems of the Dansk Supermarked group, combined with Sainsbury’s UK market insight, property expertise and logistics excellence will help deliver a discounter format we think UK customers will love."

The retailers said the new Netto will be a complete departure from the format that left the UK market in 2010. The stores will feature an in-house bakery offering Danish breads and pastries, while there will also be weekly and seasonal "when it's gone it's gone" offers.

Mike Coupe, chief executive designate of Sainsbury’s said: "We are very excited about helping to bring the new Netto to British shoppers. 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.

"If successful, this trial has the potential to open up a new long term growth opportunity for us complementing our fast expanding convenience, online and non-food businesses, as well as our existing supermarket estate."

The UK Netto stores will be led by Morten Möberg Nielsen who was previously managing director of Netto International in Germany.


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