As Netto reveals plans to return to the UK this year through a joint venture with Sainsbury’s, we take a look at the Danish discount grocery chain.
- The retailer launched in Copenhagen in 1981. The retailer is the largest retail chain in Denmark with more than 450 stores.
- It operates 1,255 stores across four countries: Denmark (453), Germany (346), Poland (301) and Sweden (155).
- The Danish translation of Netto means net price. Netto said its prices will be “transparent with a focus on everyday low prices, with a refreshing lack of multibuy offers”.
- Netto is the third biggest brand in Denmark, behind Ikea and electronics retailer El-Giganten.
- It is owned by Dansk Supermarked, which also owns three other Danish retail brands: department store Salling, supermarket Føtex and hypermarket Bilka.
- Dansk Supermarked’s is the largest retail company in Denmark and has a 34.9% market share. It operates more than 1,300 stores in four countries
- The company reported revenues of 56.9bn kroner (£6.1bn) in 2013, up from 54.4bn kroner (£5.8bn) the year before. Profit before tax increased to 1,771 kroner (£189m) in 2013, up from 1,317 kroner (£141m) the year before.
- More than two million customers visit Dansk Supermarked’s stores everyday.
- Dansk Supermarked employs 42,500 people and is run by managing director Per Bank.
- Netto launched in the UK in 1990, with its UK headquarters based in South Elmsall, West Yorkshire. It operated a total of 194 stores in the UK.
- Its trademark black ‘Scottie’ dog will also be making a return to the UK.
- The partnership marks a return to UK soil for the Danish supermarket after it departed the market in 2010 when it sold its stores to Asda for £778m.
- The joint venture with Sainsbury’s will see the opening of 15 Netto stores by the end of 2015. The first store is expected to open later this year.
- Both Netto’s and Sainsbury’s initial investment in the joint venture will be £12.5m. Each partner expects to incur a post-tax loss of around £5-10m up to March 31 2015.
Netto teams up with Sainsbury's for return to the UK
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At a glance: Danish grocer Netto as it returns to the UK