Discounter Netto has revealed plans to reposition itself as a mainstream supermarket. It has introduced a new strapline - 'Everyone's great value supermarket' - in order to align itself with the likes of Tesco and Asda. "Netto is moving away from the discount retail sector," Richard Lancaster, Netto UK MD, told The Grocer. "Because we offer more than 300 major brands, a total range of 1,200 lines and up to 200 weekly special offers, Netto is a viable option for consumers wishing to do a full weekly shop." However, price will still dominate Netto's proposition. "Price has, and always will be, fundamental to our great value offering, but we're now competing with all other UK supermarkets and grocery retail outlets," he said. The supermarket's black dog logo 'Scottie' is also on the way out, along with the old strapline, 'Netto - home of smart shopping'. As part of the rebranding, Netto's 179 UK stores will also receive a makeover. "As a result of ongoing customer research, Netto is currently revising store layouts and, in the first instance, has made the decision to move household from aisle one and replace it with soft drinks, crisps and confectionery," said Lancaster. "We're now working on adopting the new message right across the brand from carrier bags and till receipts, through to store fascias and vehicle livery." Netto was considering television advertising, the first in five years, to promote the new message. In the past 12 months Netto has recorded growth of 10.1% and plans to open a minimum of four new stores before the end of 2007 and 20 to 25 during 2008 to bolster sales further. "We've already opened 12 new supermarkets so far this year, two of which were purpose-built, and the remaining ten conversions of Kwik Save stores we purchased. Those converted stores have been successfully integrated into the existing business and are trading well," said Lancaster. "We're expecting to add even more stores this year. The latest opened in Malton, North Yorkshire last week. Netto is targeting all areas in which it has existing stores, from Newcastle down to Dover, and Holyhead across to Hull."
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