A First Look At Netto: Blue Chip Attends UK Store Opening

6th November 2014

Today has been an exciting day for us shopper team members at Blue Chip as we attended the launch of the first Netto store to open since the brand’s return to the UK.

New-look Netto is launching as a joint venture between parent company Dansk Supermarked and Sainsbury’s, four years after the company sold its 193 stores to Asda for £778m.

It wasn’t just the chance to sample free food, listen to the brass band playing merry tunes, win £500 and meet the brand’s mascot Scottie Dog recreated in Lego that got us excited – the new store in Leeds’ Moor Allerton Retail Park heralds a completely new phase in discount marketing.

And the store does not disappoint.

Sainsbury’s and Netto have created a comprehensive mix of own-label and branded products perfect for their intended audience. The merchandising is simple but the impact, particularly around fresh food and the bakery, is powerful. There are a number of Spot Buys dotted around the store offering amazing deals that will rival even the biggest of supermarkets. And it’s all underpinned with timely reminders of the products’ provenance  – like British meat and poultry – thus reinforcing the overall quality perception.

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It’ll be interesting to see what impact the emergence of Netto will have on Sainsbury’s sales and whether it delivers the halo effect they expect. Will shoppers go to Netto for some select items and Sainsbury’s for the rest of their shop, driving growth in both brands? And how will shoppers react to the Scandinavian approach to discount retailing? Will it be good enough to shift spend away from Aldi and Lidl?

With the next round of Netto stores due to open in the coming weeks, time will tell. What we can say with confidence is that this store is a vast improvement from those sold off in 2010!

 

Written by Phil Naylor, Shopper Marketing Manager