Sainsbury’s decision to abandon its Netto stores joint venture with Dansk Supermarket Group is set to cost £30m.
The supermarket said it was closing down the chain because it had been too difficult to find sites for Netto stores amid competition from rivals Aldi and Lidl.
Sainsbury’s chief executive Mike Coupe said: “In order to be successful over the long term, Netto would need to require significant investment and the rapid expansion of the store estate. Consequently, we have made the decision not to pursue the opportunity further and instead focus on our core business and on the opportunities we will have following our proposed acquisition of Home Retail Group.”
Netto’s 16 shops, all of which are in the North of England, will close in August, just two years after Sainsbury’s announced its £25m partnership with Dansk Supermarket Group.
Sainsbury’s is pushing ahead with its £1.4bn takeover of Home Retail Group, the parent company of Argos.
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