Netto UK

Netto Limited
Private
Industry Retail
Genre Supermarket
Founded 1990–2011
2014–
Headquarters United Kingdom
Area served
 United Kingdom
Key people
 Morten Møberg Nielsen (Chief Executive)
Owner Dansk Supermarked A/S (1990–2010)
Asda Stores Ltd (2010–2011)
Dansk Supermarked A/S (50%) & J Sainsbury plc (50%) (2014–)
Website http://www.netto.co.uk

Netto is a discount supermarket chain in the United Kingdom.

Netto originally arrived in the United Kingdom in December 1990, as part of an internationalisation process by its Danish owner, Dansk Supermarked A/S. By May 2010, it operated 193 stores, before it was sold to ASDA. In June 2014, Dansk Supermarked returned Netto in the United Kingdom, as a 50:50 joint venture with Sainsbury's.

History

Foundation

Netto in Northallerton, North Yorkshire, England

Netto began operating in England in Leeds, on December 13, 1990, with the company's United Kingdom headquarters being based, in the ex-mining village of South Elmsall, West Yorkshire.

Expansion

Netto primarily expanded in central England, before moving into Southern England, namely London. In January 2005, plans for a £200M investment in South Wales were announced, only to be cancelled. This was all due to logistical issues, resulting in the sell-off of stores in Barry & Caerphilly. 1,700 jobs were promised in the expansion, with only a few being created.

By May 2010, there were a total of 193 stores in the United Kingdom, all in England and Wales.

Sale to Asda

In May 2010, Netto UK was bought by ASDA for £778M, to increase its smaller store portfolio. The rebranding of 147 former Netto stores, under the ASDA brand was complete by November 29, 2011. Competition laws required ASDA to sell the remaining 47 stores to other companies such as Morrisons, new convenience store UGO, and other retailers.[1][2]

Re-establishment with Sainsbury's

In June 2014, Dansk Supermarked announced a 50:50 joint venture, to operate supermarkets with Sainsbury's.

By December 2015, Northern England will have around 15 Netto stores.[3] On April 13 it was announced that the Co-operative Food store in Hedon, East Yorkshire will become the 6th Netto store to launch following the sale of the existing store. The stores will be between 10,000 sq ft, and 15,000 sq ft in size.[4]

Current operations

The first branch to open in the second era in Moor Allerton, Leeds.
A LEGO Netto Dog outside the Ormskirk branch.
Country Stores From
 United Kingdom 5 2014

The new business has its headquarters in Wakefield, and a distribution centre in Scunthorpe.[5]

Stores

Netto opened the first new store in Moor Allerton, Leeds, on November 6, 2014, followed by stores in Sheffield Kilner Way Retail Park, Manchester Heaton Park, Doncaster Edenthorpe, Ormskirk The Hatteresly Centre.[6]

The stores are due to be 10,000 sq ft to 15,000 sq ft in size, in either retail parks or stand-alone units, with prominent road frontages and at least 60 parking spaces.

Former operations

Country Stores From Until
 United Kingdom 193 1990 2011

Stores

Stores were opened in England, in London, Carlisle, Dover, Leeds, Liverpool, Blackburn, Bolton, Burnley, Southampton, Stoke-on-Trent, Barrow-in-Furness, Leicester, Sheffield, Bury, Darwen, Rotherham, Birmingham, Bradford, Shenley Church End, Manchester, Beverley, Hartlepool, Accrington, Chorley, Middlesbrough, Newcastle upon Tyne, Northallerton, Kingston upon Hull, Market Weighton, Coalville, Leyland, Wakefield, Sunderland, Kidderminster, King's Lynn, Bedlington, Wigan, Shrewsbury, Lincoln, Tamworth, Goole & York.

Four stores were opened in North Wales, in Holyhead, Llandudno Junction, Flint and Caernarfon.

By 2011, the 193 Netto stores were sold to ASDA, who under Competition Commission requirements then disposed of 27 stores to Morrisons, and 20 stores to Haldanes (including UGO). This venture failed, with Haldanes going into administration in February 2012, with the 20 stores being sold to Poundstretcher.[7]

The fate of the stores were as follows:

The Netto store in Halifax, West Yorkshire was demolished. There were proposals for the store to be turned into offices, whilst the car park was developed into Broad Street Plaza, an entertainment complex.

Store format

Netto stores carried a discount supermarket-style store format. Many prices were very similar to wholesale prices, in a style and concept closest to the Kwik Save brand. To enforce fairness to all shoppers, many offers were limited to six per person. Netto sold brand-name products, such as Pepsi and Walkers Crisps, which were often parallel imports.

See also

References

  1. ↑ "Asda buys Netto's British stores". The Daily Telegraph (London). 2010-05-27.
  2. ↑ "OFT allows Asda to open 147 ex-Netto stores - Retail Gazette". retailgazette.co.uk. Retrieved 2014-06-22.
  3. ↑ The Grocer, http://www.thegrocer.co.uk/companies/supermarkets/sainsburys/sainsburys-to-bring-back-netto-in-the-uk/358784.article
  4. ↑ Netto, http://www.netto.co.uk/NET_03-1%20PRESS%20DAY%20LOCATIONS%20FLYER%20A5.pdf
  5. ↑ Pontefract and Castleford Express, http://www.pontefractandcastlefordexpress.co.uk/news/business/business-news/new-netto-chain-to-have-its-headquarters-in-wakefield-1-6743697
  6. ↑ "Sainsbury's and Netto open first of 15 new discount stores.By December 2015, up to 11 more stores will be opened.".
  7. ↑ http://www.thegrocer.co.uk/channels/discounters/netto-returns-what-happened-to-its-stores-in-the-uk/358795.article

External links

Wikimedia Commons has media related to Netto UK.