Netto’s UK return, via a joint venture with Sainsbury’s, will “set new standards for discount retailing in the UK” as it opens its first UK store in Leeds.
According to Retail Week, Netto’s return - a joint venture with Sainsbury’s - comes as rival hard discounters Aldi and Lidl continue to grow at breakneck speed at the expense of the big four grocers.
The Danish discounter exited the UK four years ago but marked its return with a store on Moor Allerton Retail Park in Leeds. It will be followed by a further four this month.
Chief executive of Netto parent company Dansk Supermarked Per Bank said: “We are discount, but with a Scandinavian twist and we hope customers will see that.
“Discount retailing has come of age in the UK and the market can support so many more discount shops. Our competitors Aldi and Lidl have done a great job in helping discount become more mainstream but we will take the concept one step forward.”
Bank said Netto’s fresh and bakery offers, the “friendly and bright” store environment, and the “sense of humour” of the brand will set it apart.
Commercial director Nick Townend said next year’s expansion would be concentrated in the area between the M62 and M1 from a depot in Scunthorpe.
Townend said if the model works, that depot could support up to 150 stores, and that eventually Netto could have five depots servicing up to 750 shops.
The 8,072 sq ft Moor Allerton store carries 2,300 SKUs, plus around 60 ‘spot deals’ each week, sold on a ‘when they’re gone, they’re gone’ basis.
Fresh produce is delivered to the store each day, and there is a strong emphasis on British products.
Netto has also used the model of ‘good, better, best’ in some categories with its entry-level brand Easy and its top-end brand Premieur. Its ‘better’ range, which makes up the bulk of the ranges, is made up of different private label brands such as Chesterfords.
Townend said the range tiers are “as good in terms of quality as any of the big supermarkets”.