Netto UK: Difference between revisions

▲'''Netto''' was a [[discount store|discount supermarket]] chain in the [[United Kingdom]]. [[Netto (store)|Netto]] arrived in the United Kingdom in December 1990, as part of an internationalisation process by its [[Denmark|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]].

▲In July 2016 the two companies announced they would end the joint venture, and close all its stores, after Sainsbury's chose to focus on its main business ahead of any further investment.<ref>{{cite web|url=http://uk.reuters.com/article/uk-sainsbury-netto-idUKKCN0ZK0Y7|title=Sainsbury's ends Netto discount chain experiment|work=ul.reuters.com}}</ref>

▲===Foundation===

▲[[File:Netto Northallerton.JPG|thumb|320px|right|Netto in [[Northallerton]], [[North Yorkshire]], [[England]]]]

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

▲Netto primarily expanded in central England, before moving into [[Southern England]], namely [[London]]. In January 2005, plans for an £200 million investment in [[South Wales]] were announced, but were cancelled for logistical issues, resulting in the sell off of stores in [[Barry, Vale of Glamorgan|Barry]] and [[Caerphilly]]. 1,700 jobs were promised in the expansion, but only a few were created. By May 2010, there were 193 stores in the United Kingdom, all in England and Wales.

▲In May 2010 Netto UK was bought by Asda for £778 millon, to increase its smaller store portfolio. The rebranding of 147 former Netto stores, under the Asda brand was complete by 29 November 2011. Competition laws required Asda to sell the remaining 47 stores to other companies, such as [[Morrisons]], new convenience store [[Ugo (retailer)|Ugo]], and other retailers.<ref>{{cite news| url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7770874/Asda-buys-Nettos-British-stores.html | location=London | work=The Daily Telegraph | title=Asda buys Netto's British stores | date=2010-05-27}}</ref><ref name="retailgazette">{{cite web|url=http://www.retailgazette.co.uk/articles/10000-oft-allows-asda-to-open-147-exnetto-stores|title=OFT allows Asda to open 147 ex-Netto stores - Retail Gazette|publisher=retailgazette.co.uk|accessdate=2014-06-22}}</ref>

▲===Re establishment with Sainsbury's===

▲Netto opened the first new store in [[Moor Allerton]], [[Leeds]], on 6 November 2014, followed by stores in [[Sheffield]] ''Kilner Way Retail Park'', [[Manchester]] ''Heaton Park'', [[Doncaster]] ''Edenthorpe'' and [[Ormskirk]] ''The Hatteresly Centre''.<ref name="Netto reopens">{{cite web|url=http://www.bbc.co.uk/news/business-29918179|title=Sainsbury's and Netto open first of 15 new discount stores. By December 2015, up to 11 more stores will be opened.}}</ref>

▲On 13 April 2015 it was announced that [[The Co-operative Food]] store in [[Hedon]], East Yorkshire, would become the sixth Netto store to launch, following the sale of the existing store.

▲By December 2015, the company planned to have around 15 Netto stores in [[Northern England]].<ref>{{cite web|url=http://www.thegrocer.co.uk/companies/supermarkets/sainsburys/sainsburys-to-bring-back-netto-in-the-uk/358784.article|title=Sainsbury’s to bring back Netto in the UK|work=TheGrocer.co.uk}}</ref> By 25 January 2016, however, the business operated thirteen<ref name="netto.co.uk">https://www.netto.co.uk/stores/</ref> stores. On 4 July 2016 it was announced that following an strategic review of the joint partnership, that all stores would be closed during August 2016.<ref>{{cite web|url=http://otp.investis.com/clients/uk/jsainsbury/rns/regulatory-story.aspx?cid=162&newsid=750815|title=DANSK SUPERMARKED GROUP AND SAINSBURY'S ANNOUNCE OUTCOME OF NETTO UK STRATEGIC REVIEW|work=J Sainsbury plc}}</ref>

▲==Former operations==

▲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 (retailer)|Ugo]]). This venture failed, with Haldanes going into administration in February 2012, with the 20 stores being sold to [[Poundstretcher]].<ref>{{cite web|url=http://www.thegrocer.co.uk/channels/discounters/netto-returns-what-happened-to-its-stores-in-the-uk/358795.article|title=Netto returns: What happened to its stores in the UK?|work=TheGrocer.co.uk}}</ref>