by Admin Staff
In response to the 'Lidl Challenge' Sainsbury's is to partner with Netto in a deal that will bring the Scandinavian flair to the UK discount sector.
Sainsbury's announced it is to trial with Netto - a discount grocery retailer - formerly known to match Lidl and Aldi, to fend off the challenge from budget stores.
Netto will be remodelled into a attractive new format, says a news brief from Sainbury's last week. There will initially be 15 Netto Stores to be opened by 2015, with the first opening their doors in the North of England later this year.
"The new-look Netto will take the form of a joint venture combining Dansk Supermarked’s excellence in systems, infrastructure and low-cost operations with Sainsbury’s UK grocery, product sourcing and property expertise, in a compelling customer proposition", the statement said.
The 50:50 partnership will see each partner initially investing £12.5 million into the joint-venture and expects to run at a loss in the first year, Sainsbury's statement said.
Sainsbury's incoming CEO, Mike Coupe said: "We are very excited about helping to bring the new Netto to British shoppers. This joint venture provides a great opportunity for us to gain exposure to the high growth discount market for the first time in partnership with Dansk Supermarked, whose expertise and values are a strong complement to our own."
To read the full statement visit www.j-sainsbury.co.uk.
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* Photo Credit: Sainsbury's.
In response to the 'Lidl Challenge' Sainsbury's is to partner with Netto in a deal that will bring the Scandinavian flair to the UK discount sector.
Sainsbury's announced it is to trial with Netto - a discount grocery retailer - formerly known to match Lidl and Aldi, to fend off the challenge from budget stores.
* New Image: Artists impression of the new branding proposal.
"The new-look Netto will take the form of a joint venture combining Dansk Supermarked’s excellence in systems, infrastructure and low-cost operations with Sainsbury’s UK grocery, product sourcing and property expertise, in a compelling customer proposition", the statement said.
The 50:50 partnership will see each partner initially investing £12.5 million into the joint-venture and expects to run at a loss in the first year, Sainsbury's statement said.
Sainsbury's incoming CEO, Mike Coupe said: "We are very excited about helping to bring the new Netto to British shoppers. This joint venture provides a great opportunity for us to gain exposure to the high growth discount market for the first time in partnership with Dansk Supermarked, whose expertise and values are a strong complement to our own."
To read the full statement visit www.j-sainsbury.co.uk.
* Photo Credit: Sainsbury's.
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