home bargains tj morris

Home Bargains has snapped up the majority of the former Netto sites for an undisclosed sum, The Grocer can reveal.

The discounter has taken 11 out of the 16 sites that became available after Sainsbury’s called time on its joint venture with Netto in July.

Home Bargains will now set about opening stores in the north of England locations including Leeds, Hull, Manchester, Lincoln and Sheffield. The sites range from 10,463 to 14,960 sq ft and the cost of rates and annual rents average out at around £150,000 per store.

The purchase comes just two months after Home Bargains owner TJ Morris announced it was planning to open about 30 new stores in the coming months, taking its total to 450 by June next year. Its most recent accounts revealed pre-tax profits for the year to 30 June fell 6.9% to £137m while sales were up 9% to £1.6bn.

The Netto plots in Doncaster, Ellesmere Port and Rochdale appear to be the only ones left up for sale and Sainsbury’s said it was “in discussions with other parties” over their purchase. 

The remaining two former Netto sites in Lymm and Hedon were never put up for sale. In September, Sainsbury’s revealed it would convert these branches into its own fascia.