What went wrong with Netto in the UK?
After two years, Sainsbury’s has ended its joint venture with Netto supermarkets in the UK. All 16 Netto stores will close at the end of the month. What was an attempt to compete with discounters Aldi and Lidl, failed due to several reasons.
Paul Foley, Managing Partner of FRC, was interviewed for “The Grocer” magazine and believes the key issue was a lack of investment. He believes that a $500m investment is needed to establish a discounter in a new market, and Sainsbury’s were never going to invest that amount.
Read the full article here: Why Sainsbury’s decided this dog has had its day.
Source: The Grocer, 9th July 2016.