Netto supermarket to close after just eight months

THE Netto supermarket at Lymm, which opened only eight months ago, is to close in August – along with all 16 other Netto stores in the UK.
Another Netto store, planned for the site of the Sportsman’s Arms at Penketh, will not now open.
The store was surrounded in controversy at Lymm, even before it opened in Rushgreen Road, with many local people saying they would prefer an upmarket store, such as Waitrose or Marks and Spencer.
But although the Lymm store has not appeared to be doing well, the closure is obviously more to do with the national situation than anything to do with a boycott by Lymm people.
The question now being asked is – what is to happen to the smart, modern building when Netto move out?
Could an upmarket store yet be tempted to open in the area?
Netto opened in the UK through a partnership between the Danish firm and Sainsbury’s.
Mike Coupe, Sainsbury’s chief executive, said: “Netto is an excellent retailer with talented leaders and colleagues and we have learnt a great deal about the discount grocery retail market from this trial venture.
“Since we first envisaged the trial, almost three years ago, the grocery sector has evolved significantly and we launched our strategy 18 months ago to address these changing dynamics.
“Against this backdrop, as planned, we carried out a detailed review with DSG on the future of Netto. To be successful over the long term, Netto would need to grow at pace and scale, requiring significant investment and the rapid expansion of the store estate in a challenging property market.
“Consequently, we have made the difficult decision not to pursue the opportunity further and instead focus on our core business and on the opportunities we will have following our proposed acquisition of Home Retail Group. Our learnings from the trial will undoubtedly benefit the rest of our business as we move forward.”
Netto was originally introduced in the UK in 1990 but left in 2010 after it sold its 198 stores to Asda.
Its second attempt at gaining a foothold involved 16 stores in the north of England, in partnership with Sainsbury’s.
About 400 jobs will be lost nationally as a result of the closure.