Asda buys Netto for £778m

[Taf]

I wondered why ASDA had not followed Tesco with Tesco Metro or Sainsburys with Sainsburys Local.

It seems they were waiting to snap up a load of stores in one go.

[Osem]

Originally Posted by joglynne

I am seriously naffed off about this. Netto beats the socks off both Asda and Tesco on the prices front. I did a weekly shop this morning and on branded goods I probably saved getting on for 30% and on fruit and veg about 50% for better quality produce.

I'm not a happy bunny.

For top quality fruit and veg you really can't beat Kymmy's allotment you know. If you get there when she's busy moderating this madhouse it's all free too .....

This is a very interesting move by ASDA.

The battle for market share in the small to medium 'convenience store' sector seems to be pretty intense.

J Sainsbury took over many 'Jacksons' stores & re-branded them as 'Sainsbury's Local' a while ago.

Other 'convenience store' & 'Symbol groups' such as Spar, Budgens, Londis & Nisa-Todays appear to have performed well in recent times, relying on local footfall rather than 'out of town' shopping - helped, no doubt, by the harsh winter which discouraged travelling too far to shop by car.

The acquisition of Netto would seem to be a 'buy in' to this trend ???

[Peter_]

Originally Posted by gazfan

This is a very interesting move by ASDA.

The battle for market share in the small to medium 'convenience store' sector seems to be pretty intense.

J Sainsbury took over many 'Jacksons' stores & re-branded them as 'Sainsbury's Local' a while ago.

Other 'convenience store' & 'Symbol groups' such as Spar, Budgens, Londis & Nisa-Todays appear to have performed well in recent times, relying on local footfall rather than 'out of town' shopping - helped, no doubt, by the harsh winter which discouraged travelling too far to shop by car.

The acquisition of Netto would seem to be a 'buy in' to this trend ???

These are full size supermarkets so cannot really be compared to those smaller convenience stores, but they will be a wise investment by ASDA if it is allowed to go ahead.

Originally Posted by Masque

These are full size supermarkets so cannot really be compared to those smaller convenience stores, but they will be a wise investment by ASDA if it is allowed to go ahead.

Some of the one's I mentioned are comparable - for example there are 2,500 Spar stores across the UK, some of them are a match for the Netto stores in size.

Also with some stores it isn't always obvious who they are affiliated with - some quite large 'local' supermarkets retain their own branding, but are still members of a larger purchasing organisation.

[Peter_]

Originally Posted by gazfan

Some of the one's I mentioned are comparable - for example there are 2,500 Spar stores across the UK, some of them are a match for the Netto stores in size.

We do not have any large Spar stores in this area but I know what you are getting at, most Netto's are around the same size as your average Somerfield store and usually bigger than your average Iceland store by a fair bit.

Originally Posted by Masque

We do not have any large Spar stores in this area but I know what you are getting at, most Netto's are around the same size as your average Somerfield store and usually bigger than your average Iceland store by a fair bit.

True & they usually have their own car park, as well, which many other 'convenience' stores don't.

[Peter_]

Originally Posted by gazfan

True & they usually have their own car park, as well, which many other 'convenience' stores don't.

Which is by far the main difference nad will probably bring ASDA a new customer base within local communities that find it difficult to visit a mainstream ASDA store.