Discount Retail Chain Netto Poland (owned by the Danish Salling Group) has expanded to more than 660 stores, opening more than 60 of them in the last 12 months, including 2 today and 5 in December alone. The expansion of the range, but also the introduction of changes in the pricing and assortment policy, translated into an increase in the number of customer visits by nearly 53%. The goals for 2023 are ambitious, but rooted in economic realities and directly related to customer expectations.
The past year has been extremely intense for Netto. In the first quarter of 2022, the chain focused primarily on completing the Tesco conversion process started in May 2021. It is not only the opening of 250 Netto stores in place of Tesco, but also the integration of both teams, totaling over 9,000 people. Over the following months, work was carried out in connection with the planned modernization of existing facilities as a result, as many as 30 of them gained a new look and amenities for customers. The end of the third and fourth quarters of the year was marked by organic growth, 2022 will end with the opening of a total of 14 new stores, of which as many as 5 fall in December (in Lipnik, Nowe Lipiny, Nadarzyn, Jelonek and Osinów Dolny). Thus, the network will put into use customers as much as 10,000 m.kw. new retail space. The Mazowieckie Voivodeship gains the most here, after the opening of the store in Nadarzyn on December 21 this year, a total of 7 outlets were established. An interesting fact is the opening of a second store in the city format, this time in Wrocław. It is a concept of a local store, with a smaller area and assortment compared to the standard outlet, but still meeting the expectations of customers. It is possible that there will be more such stores.
"This year has been difficult and full of challenges, but we have achieved all the goals we set ourselves. I have no doubt that it is thanks to people, both those who have been associated with Netto for years, as well as those who have recently joined us. Without their commitment to building this business, it would not have worked. I thank them very much for this, says Hugo Mesquita, CEO of Netto Polska, who took up this position in January 2022.
Modern network throughout the country
Currently, there are over 660 Netto stores in Poland, of which over 420 in the new 3.0 format. It is synonymous with modernity, which is conducive to a positive shopping experience. The concept of Netto stores stands out on the discount market in Poland, at the same time referring to the Scandinavian roots of the chain. The interior design is minimalist, and the materials used for the finish natural. Wide aisles, subdued lighting or a well-thought-out assortment layout are conducive to the comfort of shopping. In the coming years, the chain plans to modernize all stores in its portfolio to be compatible with this concept.
Over 430 Netto stores are equipped with bake-off zones, thanks to which customers can choose from a wide range of freshly baked, still warm bread.
Modern network throughout the country
Currently, there are over 660 Netto stores in Poland, of which over 420 in the new 3.0 format. It is synonymous with modernity, which is conducive to a positive shopping experience. The concept of Netto stores stands out on the discount market in Poland, at the same time referring to the Scandinavian roots of the chain. The interior design is minimalist, and the materials used for the finish natural. Wide aisles, subdued lighting or a well-thought-out assortment layout are conducive to the comfort of shopping. In the coming years, the chain plans to modernize all stores in its portfolio to be compatible with this concept.
Over 430 Netto stores are equipped with bake-off zones, thanks to which customers can choose from a wide range of freshly baked, still warm bread.
Self-service checkouts are already installed in 140 stores, which significantly shorten queues, and thus the time that customers spend in the checkout area.
In addition to the development in the traditional channel, Netto has taken the first step in the area of online shopping. This is thanks to the cooperation established with Everli a platform that allows ordering food products at a specific time to the door. The service is available to over 11 million customers living in nearly 50 cities throughout Poland, which means that it covers about 200 Netto stores.
Energy important not only for action
This year, the Salling Group, which owns the Netto network, announced the energy transformation, deciding to invest about half a billion zlotys in these activities.
As part of them, Netto stores and distribution centers will use alternative heating sources, such as: heat pumps, energy-saving refrigeration solutions or photovoltaic panels. These are some elements of the overall commitment of the Salling Group, including Netto Polska, to sustainable development.
'The energy transformation is becoming a fact. In mid-December, photovoltaic panels were on the roofs of over 100 of our stores. This will reduce energy consumption by up to 17% per year. Another element of this transformation is the installation of doors in refrigerated racks. We will continue both of these activities in the coming years' assures Hugo Mesquita.
With courage and prudence in 2023
The changing reality requires a flexible approach to business.
"We are fully aware that increasing the sales area is only the first step. The most important is the offer composed in accordance with the needs of customers and referring to the market competition is strong, which is why we are constantly looking for ways and solutions that will build our market advantage. Next year, we would like to focus m.in on the development of our assortment, including private labels, and even better adjustment of our pricing policy to customer expectations. We are aware that in order to prepare the most attractive offer, we must work in full synergy with suppliers," says Hugo Mesquita.
"However, when it comes to development, we still want to grow. At the moment, in 2023, we plan to open 25 new stores and carry out 30 renovations. More stores will gain baking zones and will be equipped with self-service checkouts" he adds.
At the end of May, the relocation of the company's headquarters from Szczecin to Warsaw is also to be completed. It is a process that has been divided into phases so that the change runs smoothly and the business runs smoothly.
Netto also announces the continuation of activities aimed at supporting local communities. At the beginning of February, the network will present the results of the Neighbourhood Power programme, under which Netto Polska will finance a total of 50 local initiatives submitted by individuals and organisations across Poland.
27 years in Poland
In Poland, Netto is a retail chain that during the 27 years of its presence on the Polish market has developed the position of one of the largest retailers in our country. The company has over 660 stores and 5 distribution centers in Poland, employs over 9,000 people. This means that Netto Polska ranks third among brands present on the domestic discount market.
See here for more: Netto: The passing year was a time of dynamic development (retailnet.pl)
