Member Article

Leeds becomes home to first Netto stores in partnership with Sainsbury’s

Sainsbury’s is set to open the first of its 15 stores in partnership with Danish discount chain Netto in Moor Allerton in Leeds.

Both Netto and Sainsbury’s are investing £12.5 million in the venture, and are expecting to make a loss of £5 million to £10 million up to 31 March 2015.

The supermarket giant is attempting to take on discount rivals Aldi and Lidl with the joint venture, and if successful in Leeds, will roll out to the rest of the country.

This also marks a return to the UK for Netto, which ended a 14-year UK presence in 2010 when it sold up to Asda, and the venture concentrates on the North as Sainsbury’s base is strongest in the South - avoiding as much competition between the brands.

The UK’s discount supermarket sector is currently worth an estimated £10 billion in annual sales and is forecast to double in value to approximately £20 billion in the next five years, according to analysts IGD.

Sainsbury’s is one of the “big four” UK supermarkets alongside Asda, Tesco and Morrison’s. All have been fighting to maintain market share in the face of increased competition from discount grocers and upmarket brands, such as Waitrose.

This was posted in Bdaily's Members' News section by Clare Burnett .