DANISH RETAIL brand Netto has returned to the UK, with ambitions of challenging the breadth of the food retail market.
Its first store launches today in Leeds’ Moor Allerton Retail Park, bringing a “Scandinavian twist” to discount shopping.
New-look Netto is launching as a joint venture between parent company Dansk Supermarked and Sainsbury’s, four years after the company sold its 193 stores to Asda for £778m.
Per Bank, chief executive and managing director at Dansk Supermarked, told the Yorkshire Evening Post that Netto aims to raise standards in discount retailing.
He said: “We want to add something different to the discount market. It’s a new discounter, it’s a new-look Netto and it’s a Netto with a Scandinavian twist developed closely together with Brits and Danes.”
Dansk Supermarked and Sainsbury’s have invested £12.5m in the venture, which will trial 15 stores around the North before the end of 2015. Both companies expect to make losses of between £5m and £10m by the end of March.
The rise of discount retailing, demonstrated by the increasing success of Aldi and Lidl, and the partnership with Sainsbury’s make it the “perfect time” to relaunch Netto, Mr Bank said.
He said: ““Retail is becoming more and more competitive and the discount market in the UK has taken off, it’s really moving. Still, it’s not too late.
Thursday’s Moor Allerton launch will be followed by openings in Manchester, Sheffield and Ormskirk by mid-November. A Doncaster store will open later in the month, with an additional 10 in 2015.
The stores will be based at a variety of locations, including retail parks. All stores will be located in the North, with a distribution centre in Scunthorpe.