The discounter is playing for big stakes with its ‘smart shopping’ action plan. Anne Bruce talks with the new MD
Hard discounter Netto has achieved something of a turnaround in the last quarter after struggling to build its market share since entering the UK 13 years ago.
Its year-on-year growth for the 12 weeks to May 15 was14.8%, according to ACNielsen consumer panel figures, ahead of Tesco and Asda, on 10.7% and 7.5% respectively.
New MD Claus Wædeled, who joined the discounter from Føtex, Denmark’s equivalent to Waitrose, last September, puts the increase in sales down to Netto’s “smart shopping” action plan.
“In the same way people use budget airlines we are attracting a wide range of customers wanting quality, value prices and a pleasant shopping experience,” he says.
Netto has less than a 1% share of the grocery market, according to ACNielsen, largely the result of its past strategy of buying stores in poor locations.
Wædeled, however, has a mission, which is to grow market share. His “smart shopping” project includes either refurbishing or relocating Netto’s 134 UK stores. Take the new £4m Hoddesdon store, which was relocated from the town centre to an edge-of-town location last month.
Trading from the 12,000 sq ft store, which opened on May 27, broke Netto records for the number of first day shoppers at 10, 000. It is one of Netto’s “new generation” stores that Wædeled believes will help Netto build its share of the UK grocery market.
The store has more cash tills, a brighter shopping environment and more than 100 car parking spaces. There is also an Intersport sportswear concession, a first for Netto.
Over the past couple of months, Netto has installed new till systems at all its stores as well as longer conveyor belts at checkouts, new merchandising stands and new cash registers.
An automatic store order replenishment system has also been introduced to improve stock levels.
Netto has an aggressive marketing strategy, says Wædeled. Intense local activity preceded the Hoddesdon opening and 50,000 eight-page leaflets on deals were distributed in the area.
Wædeled says range is also key: “Compared with other discounters we have a lot of branded products - a third of our range.” Own label is in the process of being reviewed.
Wædeled believes there is room for 1,000 Netto stores in the UK provided conumers are re-educated about discounting and planning permissions are received.
“I’m so confident about our concept in the UK,” he says. “If you ask people today what they value, the most important thing is time. You can do your shopping in Netto in half the time and at a low price.”
Hard discounter Netto has achieved something of a turnaround in the last quarter after struggling to build its market share since entering the UK 13 years ago.
Its year-on-year growth for the 12 weeks to May 15 was14.8%, according to ACNielsen consumer panel figures, ahead of Tesco and Asda, on 10.7% and 7.5% respectively.
New MD Claus Wædeled, who joined the discounter from Føtex, Denmark’s equivalent to Waitrose, last September, puts the increase in sales down to Netto’s “smart shopping” action plan.
“In the same way people use budget airlines we are attracting a wide range of customers wanting quality, value prices and a pleasant shopping experience,” he says.
Netto has less than a 1% share of the grocery market, according to ACNielsen, largely the result of its past strategy of buying stores in poor locations.
Wædeled, however, has a mission, which is to grow market share. His “smart shopping” project includes either refurbishing or relocating Netto’s 134 UK stores. Take the new £4m Hoddesdon store, which was relocated from the town centre to an edge-of-town location last month.
Trading from the 12,000 sq ft store, which opened on May 27, broke Netto records for the number of first day shoppers at 10, 000. It is one of Netto’s “new generation” stores that Wædeled believes will help Netto build its share of the UK grocery market.
The store has more cash tills, a brighter shopping environment and more than 100 car parking spaces. There is also an Intersport sportswear concession, a first for Netto.
Over the past couple of months, Netto has installed new till systems at all its stores as well as longer conveyor belts at checkouts, new merchandising stands and new cash registers.
An automatic store order replenishment system has also been introduced to improve stock levels.
Netto has an aggressive marketing strategy, says Wædeled. Intense local activity preceded the Hoddesdon opening and 50,000 eight-page leaflets on deals were distributed in the area.
Wædeled says range is also key: “Compared with other discounters we have a lot of branded products - a third of our range.” Own label is in the process of being reviewed.
Wædeled believes there is room for 1,000 Netto stores in the UK provided conumers are re-educated about discounting and planning permissions are received.
“I’m so confident about our concept in the UK,” he says. “If you ask people today what they value, the most important thing is time. You can do your shopping in Netto in half the time and at a low price.”
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