Netto has selected 15 locations where it will open trial stores this autumn, marking its return to the UK market. The discounter, operating in conjunction with Sainsbury's, has marked off territory in the north of England for its return to the market: the 15 outlets will all be located within 120 miles of each other. The partnership is regarded as an audacious step in challenging the German discounters, which are pulling customers from Britain's big four supermarkets, as out-of-town superstores increasingly lose out to more local, low-cost shops. Netto require sites of between 10,000 to 15,000 square feet, with direct access to principal roads, and relatively high numbers of nearby residents. Per Bank, CEO of Netto, intimated that the initial 15 outlets could be supplemented in the future via the opening of more stores elsewhere in the UK: "The stores will be located in areas with an interesting demographic mix of mixed-affluence households, which will tell us a lot about the viability of the concept across different regions of the country. But we think we can make a success of this wherever we go." Netto will sell fresh food, have in-store bakeries and weekly offers of home and seasonal products, such as camping gear, just as Lidl and Aldi do. They will not stock Sainsbury's own-label food however. © 2014 European Supermarket Magazine by Peter Donnelly
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