Netto Sweden: CEO exits, expansion plans & concept stores

Date : 13 April 2017

We round up the latest developments from Netto in Sweden including the CEO’s departure, expansion plans and new concept stores.

CEO Bernt Holm resigns…

In late March, Netto Sweden’s CEO Bernt Holm resigned, with Jan Richter, former purchasing director taking over as acting president.

This follows previous news that parent company Dansk Supermarked Group is also to recruit a new director for Netto International, replacing Claus Juel-Jensen, who has worked for the retailer for close to 25 years.

…As it begins biggest Swedish expansion to date

In other news, Peter Jakobsen, Director of Establishment for Netto Sweden advised that Netto’s expansion plans would be the biggest in the retailer’s Swedish history, with a particular focus on the Stockholm area and southern Götaland.

So what do we think?

Netto has traditionally been underrepresented in Stockholm. Refocusing on the capital city with the right store concept should help drive growth, especially given that urbanisation has increased by 83% between 2010 and 2015 according to Norden Stat Bank. However, Netto will be up against intense competition in the capital from the country’s leading retailers, as well as Lidl. The discount competitor is one of the smallest but fastest growing retailers in Sweden and operates 18 stores in Stockholm and the surrounding 10 kilometres. It is also introducing its own new concept store across Europe.

New concept stores with an emphasis on fresh

Elsewhere, Netto opened two new concept stores earlier this week in Mullsjö and Kållered, southern Sweden.

Commenting on the development, Peter Jakobsen continued, ‘We have updated our concept. It is a more modern and fresher layout, [there are also] other colours and large changes in the product range. We have, for example, greater facilities for refrigerators and freezers, and fruit and vegetables … [The] test stores will lay a foundation for our future stores. The plan eventually is to renovate all of our existing stores’.