ASDA to buy Netto...

  Uboat 10:47 27 May 2010
Locked

Well rather than just competing all the time just buy out your rivals..

click here

  interzone55 12:25 27 May 2010

It's not a case of Asda competing with Netto, they're not in the same market sector.

Tesco & Sainsbury have built up a huge network of Local stores. So far Asda have not entered this market.

Now they see the error of their ways, and rather than buy up a load of empty properties and convert loads of stores, which is expensive and time consuming, and you hit loads of problems with planning applications, it's easier to simply buy a company that's already in that sector...

  ronalddonald 13:02 27 May 2010

have to heard what asda is like in the states?

  ronalddonald 13:06 27 May 2010

meant of written have you heard what asda is like in the states

  dms_05 16:17 27 May 2010

Of course ASDA's owners in the USA is actually Wal-Mart, the worlds largest retailer.

The move to buy Netto is interesting. ASDA get 178 stores for about £4 million each. They can develop along existing ASDA lines and hopefully grow their sales.

I suspect Netto stores are quite a bit bigger than Tesco Express and the like. I would expect the converted Netto stores to sell a full range of products rather than the limited range offered in the small Tesco/Sainsbury stores.

As Netto has hardly any market penetration in the UK (less than 1% I understand) I can't see the Office of Fair Trading taking any action to stop the deal.

  interzone55 17:04 27 May 2010

Netto's stores average around 8,000sq ft, which puts them between the Tesco Express and Tesco Metro stores

  spuds 18:33 27 May 2010

Either way, it will be a case of 3 or 4 major players, and definitely no Arkwright on the street corner in the not to distant future ;o))

  morddwyd 19:47 27 May 2010

Nearest Netto is 85 miles away so I doubt if I'll be looking for any special "re-branding" offers!

  spuds 22:01 27 May 2010

There's another point to look at regarding 'unwanted' retail premises. Not far from where I live in opposite directions was two 1Stop Discount stores, these were taken over by Kwik Save. One was then taken over by Tesco Metro, the other store will remain empty for the foreseeable future, because Tesco built a supermarket nearby, and part of the agreement with the local council, was no similar stores in the area. Llidl were very interested in starting business in the area, they even did a roadshow, but their plans were scuppered. They are now in talks with a property owner 4 miles away, about demolishing their property and having a new build Llidl on the site.

Other parties have been interested in the old 'abandoned' Kwik Save store, but when faced with the 'terms and conditions' regarding 'purpose' and planning. The outcome soon became very apparent- no takers. The building as been empty for 4/5 years now, and may well be eventually sold for housing, as the only option.

The Office of Fair Trading, the local council's and The Monopolies Commission seem 'hands-tied?'.

  interzone55 09:03 28 May 2010

That's a common Tesco practice, along with building up huge land-banks to stop rival groups building stores...

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