| FORUMS > The Sin Bin > Supermarket price war |
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Thoughts on Sainsbury's bringing Netto back to the UK market?
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| Quote: 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 "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 "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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| Rank | Posts | Team |
| International Chairman | 26578 | |
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| Mar 2002 | 23 years | |
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| Quote: 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.
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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| Rank | Posts | Team |
| International Star | 3605 | No
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| Jul 2012 | 12 years | |
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Someday everything is gonna be different, when I paint my masterpiece
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| Quote: 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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| Rank | Posts | Team |
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[color=#000000:ogl9gbum]"Back home we got a taxidermy man. He gonna have a heart attack when he see what I brung him."[/color:ogl9gbum]:d7dc4b20b2c2dd7b76ac6eac29d5604e_50733.jpg |
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| Quote: 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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