NETTO UK has confirmed its intention to acquire the Co-op store on Hull Road and refurbish and re-brand it as a low-price discount store with a Scandinavian twist. The Danish-owned retailers Dansk Supermarked, in a joint venture with Sainsbury, believe that their new store will bring something really unique to customers.
If successful, Netto says that all their new stores will offer outstanding value, great fresh food and an in-house bakery with delicious fresh Danish breads and pastries.
The company says that there is a “risk of redundancy” for existing staff at the co-op, but will be consulting with staff representatives on avoidance and mitigation measures.
A Netto spokesperson, told the Hedon Blog:
“We are delighted to confirm that we will be bringing our freshly baked pastries, 100% British meat and unique Scandinavian products to the people of Hedon.
“The Competitions Markets Authority (CMA) has cleared our purchase of the Co-op store on Hull Road, HU12 8DJ and we are now working with the Co-op to finalise timings for when the store can open and be re-branded as Netto. We’re still in the early stages of planning and are hoping to open in the early part of 2016.
“It is our intention to close the store on completion of the purchase for an extended period of time while we refurbish and rebrand. Unfortunately this means that all roles are at risk of redundancy as a result of these proposals.
“We would like to emphasise that this is not to say that employees will be made redundant. We are undertaking consultations with their representatives regarding our proposals and are looking at ways of avoiding redundancies or mitigating the consequences of any dismissals that have to take place.”
The first Netto store opened in 1981 in Copenhagen (Godthåbsvej) and its first UK store opened in 1990.
Netto owned by the Danish retailers Dansk Supermarked left the UK market in 2010 but Netto UK has been reformed and together with Sainsbury returned to the UK in 2014. The joint venture aims to have opened 15 new stores by the end of 2015.
Netto employs 32,000 people in Denmark and over 10,000 in other countries (Germany, Poland, Sweden and the UK).
Netto says that shopping at their stores should “save you money, provide you with a few Scandinavian surprises, and always leave you smiling”.
On the 24th July the CMA (Competition and Markets Authority) cleared the acquisition by Netto Limited of three grocery stores from Co-operative Group Limited, which included the one in Hedon (also New Edlington and Leeds).
The Co-operative Food Group are currently transforming themselves into a convenience operator. As part of their retailing strategy they have indicated that the sale of larger stores would allow them to concentrate on their smaller convenience estate and despite well-publicised difficulties in recent years, the Co-op has actually been opening new smaller stores.
There is currently a planning application lodged with the East Riding of Yorkshire Council to build a new Co-op Food convenience store on the site currently occupied by the Royal Mail pub in Thorngumbald.