New discount retailer Ugo is set to be a near carbon copy of Netto.

Mimicking its predecessor, the chain - launched by Haldanes following the purchase of 20 Netto stores from Asda - will have a yellow fascia with black lettering. In place of Netto's Scottie, Ugo's fascia will have a red shopping basket.

Keeping Netto's colours would reassure the discounter's loyal shoppers, said Haldanes operations director Richard Collins. "Basically, it will be Netto and more, to ensure we exploit the gap in the sector after they depart," he said.

Haldanes would maintain Netto's strength in fresh foods and keep its non-food and spot-line deals, he said. Pricing would remain in line with the current Netto offer.

However, the core grocery range would more than double to about 3,000 lines to allow customers to do a full shop, and stores would also offer home delivery. All sites would have ATMs, and the retailer was exploring "consumer credit opportunities".

Haldanes revealed last week that the stores were situated mainly along the M62 corridor, and in Greater Manchester and West Yorkshire.

If the brand got its ­execution right, there was every chance it would be a success, said experts.

"Ugo looks likely to be the closest thing to a 'son of Netto', combining the best of Netto with Haldanes' experience of running compact supermarkets," said retail expert Graham Soult. "Haldanes' move should avoid a repeat of when Somerfield scared away Kwik Save shoppers by ­converting stores to its more expensive fascia."

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Haldanes to launch a ‘strong and broad’ new discounter chain (15 January 2011)
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