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Thoughts on Sainsbury's bringing Netto back to the UK market?
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| International Chairman | 26578 | Swinton Lions |
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| Mar 2002 | 23 years | |
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| Quote Sam Buca II="Sam Buca II"Thoughts on Sainsbury's bringing Netto back to the UK market?'"
Smacks of desperation to me, the big four can compete of the and choice, it is partly their fault this is all about price though.
Netto failed here for a reason, they will fail again. How long before ASDA bring back Farm Stores? |
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| Quote Sam Buca II="Sam Buca II"Thoughts on Sainsbury's bringing Netto back to the UK market?'"
First thought is Asda must have messed up by not keeping them out. But I guess takeover laws may have prevented them from keeping them out after a certain time.
It seems like an admission of failure that Sainsbury's can't do this by themselves. But I guess Netto is an established name in discount shopping and the risks can be shared with them. There's also a separation between Sainsbury's and the new Netto's so that Sainsbury's aren't damaging their brand by going down-market. |
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| International Chairman | 18097 | No
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Aldi and Lidl maybe small here by comparison but they are huge global brands - they have a simple low cost formula that is easily scalable and has been demonstrated to work in multiple markets - take them on at your peril.
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| Quote Big Graeme="Big Graeme"Netto failed here for a reason, they will fail again.'"
Asda bought Netto for £778m.
They failed, or they were just taken over? |
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| International Chairman | 28357 | Bradford Bulls |
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| I hope it works out: the return of Netto's familiar carrier bags means I'd be able to use my "What's black and yellow and hangs from a count" joke again
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| International Chairman | 26578 | Swinton Lions |
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| Quote Lord God Jose Mourinho="Lord God Jose Mourinho"Asda bought Netto for £778m.
They failed, or they were just taken over?'"
If Netto was so successful why didn't ASDA keep the name (note Sainburys are using the name so ASDA didn't buy it) and keep the style of operation?
They bought cart loads of ready to go stores, many in places they didn't operate or had a small market share. They converted those stores as quickly as they could to the ASDA brand. Netto was seen as the poor relation to Aldi and Lidl even then. |
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Quote Big Graeme="Big Graeme"If Netto was so successful why didn't ASDA keep the name (note Sainburys are using the name so ASDA didn't buy it) and keep the style of operation?
They bought cart loads of ready to go stores, many in places they didn't operate or had a small market share. They converted those stores as quickly as they could to the ASDA brand. Netto was seen as the poor relation to Aldi and Lidl even then.'"
I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
The Grocer magazine's take on the joint venture. www.thegrocer.co.uk/channels/sup ... 10.article |
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Quote Big Graeme="Big Graeme"If Netto was so successful why didn't ASDA keep the name (note Sainburys are using the name so ASDA didn't buy it) and keep the style of operation?
They bought cart loads of ready to go stores, many in places they didn't operate or had a small market share. They converted those stores as quickly as they could to the ASDA brand. Netto was seen as the poor relation to Aldi and Lidl even then.'"
I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
The Grocer magazine's take on the joint venture. www.thegrocer.co.uk/channels/sup ... 10.article | |
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| International Chairman | 26578 | Swinton Lions |
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| Mar 2002 | 23 years | |
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| Jul 2017 | Apr 2017 | LINK |
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Quote Lord God Jose Mourinho="Lord God Jose Mourinho"I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
The Grocer magazine's take on the joint venture. www.thegrocer.co.uk/channels/sup ... 10.article'"
The question was about the brand, not the property portfolio, as ASDA didn't but either the whole brand or the rights to trade on the Netto name they must have thought the brand wasn't up to much.
The concept has proved to be right by Aldi and Lidl, Netto were maybe a few years early and gave up too soon. |
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Quote Lord God Jose Mourinho="Lord God Jose Mourinho"I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
The Grocer magazine's take on the joint venture. www.thegrocer.co.uk/channels/sup ... 10.article'"
The question was about the brand, not the property portfolio, as ASDA didn't but either the whole brand or the rights to trade on the Netto name they must have thought the brand wasn't up to much.
The concept has proved to be right by Aldi and Lidl, Netto were maybe a few years early and gave up too soon. | |
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| International Star | 3605 | No
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| Quote Big Graeme="Big Graeme"The concept has proved to be right by Aldi and Lidl, Netto were maybe a few years early and gave up too soon.'"
Aldi in particular focused on quality rather than absolute rock bottom pricing in their publicity whereas Netto were always about cheap, cheap, cheap, but not always good-cheap, pre-recession there was always a line in the sand beyond which was "dirt poor" and shopping in Netto was almost a badge of shame - Aldi and Lidl played it a bit cleverer, hit Netto where it hurt and are now doing the same to all the others, their PR companies should be on a profit share. |
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| Player Coach | 4659 | Wakefield Trinity |
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| Quote JerryChicken="JerryChicken"shopping in Netto was almost a badge of shame'"
100% of the supermarket jokes and mickey takes when I was at school were Netto based. |
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