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Sainsbury’s and Netto open first JV store

Sainsbury’s and Netto open first JV store

Sainsbury’s and Danish discount supermarket Netto have opened their first joint-venture store in Moor Allerton, Leeds, serviced by a new DC, located in Normanby Enterprise Park, Scunthorpe. Each party has invested £12.5m in the JV.

The initiative sees Netto making a return to the UK for the first time since its sale of 193 stores to ASDA in May 2010 for £778m. The new operation will be led by Morten Möberg Nielsen, formerly MD of Netto International in Germany, who has been with the group for 14 years.

Netto owner Dansk Supermarked Group announced in the summer that it was to revive the Netto brand in the UK - a market it entered in 1990 - with the initial opening of 15 stores, mainly in West Yorkshire, and with at least one co-located within an existing Sainsbury's store. The Moor Allerton store sits alongside an existing Sainsbury's store.

Per Bank, CEO of Dansk Supermarked, 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."

Further stores at Doncaster, Hull, Leeds, Ormskirk and Sheffield are expected to open before the end of November.

The relaunch of Netto in the UK is seen as an attempt to halt the rise of the German discounters Aldi and Lidl. The Netto stores will feature popular aspects of the established discounters, such as one-off  'spot deals' lasting until the goods have sold out, and every store will include a bakery selling Danish breads and pastries.

They will offer a top-end range called “Premieur” and an “Easy” brand for everyday items, and the Danish feel of the stores will be enhanced by the sale of Lego.

If the stores prove successful, the brand is expected be rolled out across the rest of the country.

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