Product push helps Netto cash in

SUPERMARKET chain Netto has revealed strong growth following the introduction of a raft of new initiatives.

The Danish chain, which has its UK head office in South Elmsall, West Yorkshire, saw turnover increase by 11% to £696m for the year to December 31.

Pre-tax profit was £10.4m compared to £6.3m the previous year. Operating profit was up on the preevious year from £3.1m to £9.3m.

Following Richard Lancaster’s appointment as Netto’s managing director in January 2007, the chain has introduced new products, improved the interiors of its stores, kept its shelves tidier and trialled new initiatives such as tobacco.

Mr Lancaster said: “The figures speak for themselves – the business made significant progress in 2007 and that trend is set to continue in 2008.

“Our financial results bear testimony to the ability, commitment and sheer hard work of the entire Netto team.Change is hard for any established business but my colleagues across the UK have embraced the challenges and delivered excellent results.

“Building on our achievements to date, our focus is to develop the business further via new store openings and strong like-for-like sales growth to drive turnover forward again during 2008.”

Mr Lancaster added that research had revealed that the average price per item in Netto stores was at least 18% lower than other supermarkets.

Netto, which presently has 182 supermarkets across the UK, plans to open a minimum of 20 new stores over the next 12 months.

The company employs more than 2,800 people, 200 of whom are based at its ‘store support centre’ near Pontefract.

There are more than 1,000 Netto stores across Denmark, Germany, Poland, Sweden and the UK.