The latest battle lines for supermarkets is coming to the North West.
Sainsbury has decided if you can’t beat them, join them as it announces plans to form a joint venture with Dansk Supermarked, the owner of the Netto brand, to open discount stores along the M62 corridor.
In an attempt to outflank the German discounters Aldi and Lidl who have been growing sales rapidly at the expense of the big four, Tesco, Morrisons , Asda and Sainsbury, it is to bring the Netto brand back after its stores were sold to ASDA three years ago.
Under the joint venture, five teen trial stores will open, be around 11,000 sq ft and sell 2,000 products. The stores will feature an in-house bakery offering Danish breads and pastries, while there will also be weekly “when it’s gone it’s gone” offers on food and non-food items.
Netto will offer a limited range of branded products, such as Heinz and Coca-Cola. Much of the rest of its goods will be sourced from Dansk, Netto’s parent company, and its own brand.
The first five stores will open by the end of the year and will be run entirely separately to Sainsbury.
The move comes as consumers are increasingly abandoning the large stores in favour of online grocery shopping, local convenience stores and discounters, often using the money they save to spend on affordable meals out and other treats.