Poland / Denmark: Netto expects to be more profitable after one year
Discount Retail Chain Netto's acquisition of the Tesco Poland stores is for its mother Salling Group a strategic and the largest transaction in the company's history. CEO Mr. Bank estimates that 200 of the 300 supermarket stores being acquired already fit the size of the Netto store (most of them former Price Leader stores which Tesco acquired in 2006 from Casino), and many of the remaining 100 larger (Tesco developed) stores can be reduced in size. Some will be closed and sold.
The transformation of the Tesco stores into the new Netto 3.0 brand and format will take 18 months and is according to Netto a very ambitious plan with a manageable time pressure, meaning opening 4 modernized stores a week (nevertheless significantly slower as Aldi's ANIKo new store-concept roll-out). Salling will spend $ 250 million on rebranding and modernization of the acquired stores.
Netto estimates it will be more profitable than last year, before the acquisition. Probably already in the first year - says Salling Group CEO Mr. Bank.
Click on image for more: