Danish hard-discount food retailer Netto is stepping up its UK expansion.
Netto, a subsidiary of Dansk Supermarked Gruppen, has appointed public relations advisers and announced plans to open 20 stores over the next 12 months. The company is also keen to highlight its no-nonsense budget strategy, Smart Shopping. According to research firm AC Nielsen, this approach has helped it emerge as one of the UK's fastest-growing retailers.
Netto operates more than 130 UK stores. This is likely to grow to 140 by the end of the year. Netto trading director John Buitekant said the chain hopes to acquire an additional 20 stores next year. A further 25 stores are planned in 2006.
Netto, like its larger rivals Aldi and Lidl, is on the expansion trail.
Store openings have accelerated in recent years, after earlier launches were held back by planning constraints and strict site criteria.
Netto store development manager William Smith said: 'Planning is an issue. It is an obstacle in many areas.'
Netto's requirement is for sites that can accommodate at least an 8,000 sq ft (745 sq m) refurbished or new store, with parking for 50 cars, preferably freehold. Less than a quarter of Netto's stores are leased.
'We like to buy the properties if we can. We are not subject to rent increase if we own the site,' said Buitekant.
Over the next six months, stores are planned at Cheadle and Eccles in Greater Manchester, Burnley in Lancashire, Holyhead in Anglesey, Armthorpe in South Yorkshire and King's Lynn in Norfolk, where Netto has taken a virtual freehold on a 10,000 sq ft (930 sq m) unit at Turnstone Estate's St Nicholas Park retail warehouse development.
Property agents Mason & Partners, Alder King, King Sturge, Storeys and Ian Scott & Company are on the lookout for Netto stores.
The retailer operates more than 800 stores across Denmark, Germany, Poland, Sweden and the UK.
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