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Netto is back in Sainsbury's trial

Discount supermarket Netto is back trading in the UK after opening its first store under a partnership with Sainsbury's.

The site at Moor Allerton, in Leeds, will be followed by another 14 over the next year as part of a trial scheme funded by Netto owner Dansk Supermarked and Sainsbury's.

Netto left the UK market five years ago when it sold its 198 stores to Asda.

The new stores will sell 2,000 products, similar to German discounters Aldl and Lidl, and up from the figure stocked at the time of Netto's sale.

For Sainsbury's, the move allows it to enter the fast-growing discount sector, worth an estimated £10 billion a year, without diluting the reputation it has built up at its supermarkets, convenience stores and online.

There are nearly 1,300 Netto stores across Denmark, Sweden, Poland and Germany. Other store openings planned for the UK this month include at Manchester, Sheffield, Ormskirk and Doncaster.

New ranges have been specially created for the UK stores under own-label brands "Premieur" at the top end and "Easy" for everyday items. Every store will have an in-house bakery offering fresh Danish breads and traditional Danish pastries.

Sainsbury's chief executive Mike Coupe said the store venture will bring some " much-needed Scandinavian flair to the UK discount market".

He said: "We'll, of course, be following this trial closely and supporting Netto's discounter expertise with Sainsbury's unique understanding of the UK customer."


From Belfast Telegraph