Sam Buca II wrote:Thoughts on Sainsbury's bringing Netto back to the UK market?
First thought is Asda must have messed up by not keeping them out. But I guess takeover laws may have prevented them from keeping them out after a certain time.
It seems like an admission of failure that Sainsbury's can't do this by themselves. But I guess Netto is an established name in discount shopping and the risks can be shared with them. There's also a separation between Sainsbury's and the new Netto's so that Sainsbury's aren't damaging their brand by going down-market.
Joined: Feb 27 2002 Posts: 18060 Location: On the road
Aldi and Lidl maybe small here by comparison but they are huge global brands - they have a simple low cost formula that is easily scalable and has been demonstrated to work in multiple markets - take them on at your peril.
Your job is to say to yourself on a job interview does the hiring manager likes me or not. If you aren't a particular manager's cup of tea, you haven't failed -- you've dodged a bullet.
Joined: Feb 17 2002 Posts: 28357 Location: MACS0647-JD
I hope it works out: the return of Netto's familiar carrier bags means I'd be able to use my "What's black and yellow and hangs from a count" joke again
Last edited by Ferocious Aardvark on stardate Jun 26, 3013 11:27 am, edited 48,562,867,458,300,023 times in total
Joined: Mar 08 2002 Posts: 26578 Location: On the set of NEDS...
Lord God Jose Mourinho wrote:Asda bought Netto for £778m.
They failed, or they were just taken over?
If Netto was so successful why didn't ASDA keep the name (note Sainburys are using the name so ASDA didn't buy it) and keep the style of operation?
They bought cart loads of ready to go stores, many in places they didn't operate or had a small market share. They converted those stores as quickly as they could to the ASDA brand. Netto was seen as the poor relation to Aldi and Lidl even then.
Big Graeme wrote:If Netto was so successful why didn't ASDA keep the name (note Sainburys are using the name so ASDA didn't buy it) and keep the style of operation?
They bought cart loads of ready to go stores, many in places they didn't operate or had a small market share. They converted those stores as quickly as they could to the ASDA brand. Netto was seen as the poor relation to Aldi and Lidl even then.
I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
Big Graeme wrote:If Netto was so successful why didn't ASDA keep the name (note Sainburys are using the name so ASDA didn't buy it) and keep the style of operation?
They bought cart loads of ready to go stores, many in places they didn't operate or had a small market share. They converted those stores as quickly as they could to the ASDA brand. Netto was seen as the poor relation to Aldi and Lidl even then.
I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
Joined: Mar 08 2002 Posts: 26578 Location: On the set of NEDS...
Lord God Jose Mourinho wrote:I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
The question was about the brand, not the property portfolio, as ASDA didn't but either the whole brand or the rights to trade on the Netto name they must have thought the brand wasn't up to much.
The concept has proved to be right by Aldi and Lidl, Netto were maybe a few years early and gave up too soon.
Lord God Jose Mourinho wrote:I don't know whether Netto were a success or a failure. If they spent 1bn on building up their UK operations they were a massive failure, if they however spent 500m then they were a pretty good success. Without knowing how much they invested it is ridiculous to conclude whether they were a success or a failure.
The end of Netto in the UK was mainly an expansion strategy by Asda. Sainsbury's clearly don't agree with your characterization of Netto as a failed brand or concept.
The question was about the brand, not the property portfolio, as ASDA didn't but either the whole brand or the rights to trade on the Netto name they must have thought the brand wasn't up to much.
The concept has proved to be right by Aldi and Lidl, Netto were maybe a few years early and gave up too soon.
Big Graeme wrote:The concept has proved to be right by Aldi and Lidl, Netto were maybe a few years early and gave up too soon.
Aldi in particular focused on quality rather than absolute rock bottom pricing in their publicity whereas Netto were always about cheap, cheap, cheap, but not always good-cheap, pre-recession there was always a line in the sand beyond which was "dirt poor" and shopping in Netto was almost a badge of shame - Aldi and Lidl played it a bit cleverer, hit Netto where it hurt and are now doing the same to all the others, their PR companies should be on a profit share.
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