Sainsbury’s decided to step up the discount battle with the budget supermarkets like Aldi and lidl by opening 10 Netto stores in UK. The supermarket giant also confirmed that the planning application required for the launch has now been filled.
Apart from discounters, online retailers like Amazon have also hurt UK’s big four supermarket chains. The move would increase the number of netto shops in the nation from 15 to 25. Sainsbury’s joined hands with Danish supermarket Dansk in june 2014 to revive netto shops in UK, which once boasted 200 shops before it was sold to Asda in 2010 for £778m deal.
Initially Sainsbury’s and Dansk invested £12.5m each in the joint endeavor. Sainsbury’s confirmed that the planning applications had been lodged. The British supermarket chain’s CEO Mike Coupe said that the netto brand would complete “toe-to-toe” with discount stores like Aldi and lidl. By the end of this financial year netto is on track to open 15 stores – a spokesman said.
Per Bank, CEO at Dansk said that in doing so the supermarkets plans to put a better resistance to the challenges posting by the discount supermarkets in the European terrain, starting in UK. He included that the new form of stores would be an alternate idea.
Recently Sainsbury’s hit the news for having approached Home Retail Group for a possible takeover, but the Argos owner rejected the bid. Sainsbury’s had then said that it trusted the conceivable tie-up would make an appealing suggestion for the clients and shareholders of both organizations, setting up a stage for long haul esteem creation.