Asda is rolling out plans for the integration of the 193 Netto stores it bought in May even though the deal is yet to receive regulatory approval.
The Leeds-based retailer plans to open a new distribution centre in the north of England to service the newly aquired stores, the bulk of which are in the region. It will also overhaul an existing Netto DC.
Asda bought Netto's UK business in May for £778m. It will offer a full weekly shop in each store by stocking up to 10,000 SKUs rather than Netto's typical 1,800 and will double the staff in each store. Asda stands to boost its store numbers by over 50% if the deal is cleared by the Office of Fair Trading.
Asda plans to open the north west hub in October and will convert Netto's South Elmsall depot in West Yorkshire into an ambient hub after the final Netto store has been transformed into an Asda.
Netto's 160,000 sq ft depot in Daventry will close in March, according to Asda's proposals.
"We have informed the Netto colleagues that we will be consulting with them and that if we do cease to operate from Daventry our intention will be to accommodate as many of them as possible across Asda depots in Magna Park," the company said in an internal memo to staff.