Danish discount chain Netto has returned to the UK with the opening of its first store in partnership with Sainsbury’s.
The new store, in Moor Allerton in Leeds, is located next to a large Sainsbury’s supermarket, and a further 14 stores are set to open by the end of 2015.
Both Sainsbury’s and Netto’s parent company Dansk Supermarked have invested £12.5m in the venture and given start-up costs, each partner expects to incur a post-tax loss in the region of £5-10m up to 31 March 2015.
The move is a return to the UK for Netto, which ended a 14-year presence in 2010 when it sold up to Asda.
Per Bank, CEO of Dansk Supermarked said the new stores would be very different from the old Netto format.
Boasting “outstanding value and ease of shopping to customers”, the stores feature a fresh food offer as well as an in-house bakery offering.
The stores will stock more than 2,000 products especially created for UK customers, including best-selling branded goods.
They are also likely to have a Danish flavour, offering certain of the country’s signature products, including Lego, as well as Danish pastries from the in-house bakeries.
“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,” Bank said.
“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,” he added.
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