Business news

Hedon Co-op subject of sale to a new-look Netto

The HEDON CO-OP FOOD store on Hull Road is currently subject of contractual arrangements, which if successful would lead to the supermarket becoming one of the outlets of the newly-reformed Netto .

Co-operative Hedon

Netto owned by the Danish retailers Dansk Supermarked left the UK market in 2010 but Netto UK has been reformed and in a joint venture with Sainsbury hopes to have opened 15 new stores by the end of 2015.

A spokesperson from Netto told the Hedon Blog:

“I can confirm that we’ve exchanged contracts with the Co-operative Group and we’re looking forward to bringing the new-look Netto to Hedon.

“The deal is dependent on approval by the Competition Markets Authority. If successful the new store will open later in the year and offer outstanding value, great fresh food and an in-house bakery with delicious fresh Danish breads and pastries.”

https://twitter.com/Netto_UK/status/479896868466745344
It is understood that staff within the store have been told by the Co-operative Food Group of the development.

The Co-operative Food Group are currently transforming themselves into a convenience operator. As part of their retailing strategy they have indicated that the sale of larger stores would allow them to concentrate on their smaller convenience estate and despite well-publicised difficulties in recent years, the Co-op has actually been opening new smaller stores.

There is currently a planning application lodged with the East Riding of Yorkshire Council to build a new Co-op Food convenience store on the site currently occupied by the Royal Mail pub in Thorngumbald. Whilst that scheme has its supporters in the village, the move to demolish the pub does seem to have raised a lot of antipathy towards the Co-operative Group.

Visit: www.netto.co.uk

33 replies »

  1. Announced in the store yeaterday that all staff are losing their jobs. Shop going to be closed for 5 months so they are being made redundant when the shop closes on 12th September.

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    • Is netto not taking anyone on then? Same is happening to our coop but not supposed to be transferring until late September, go told Wednesday.

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    • There must be major changes being made if the store is closing for 5 months. Heard that possibly half of the 50+ staff may be offered jobs when it re opens next year, but all being made redundant as they were not prepared to pay people whilst the changes were being made.

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  2. As previously indicated, this is subject of a statutory inquiry into whether the acquisition by Netto of the Co-op will “lessen competition” within any market or markets in the United Kingdom for goods or services.

    An opportunity for written representations ends on the 8th July with a decision expected after 19th August 2015.

    Information on this can currently be found at the following link at the Competition and Markets Authority website:

    https://www.gov.uk/cma-cases/netto-co-operative-merger-inquiry#invitation-to-comment-closes-8-july-2015

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    • 24 July 2015: The CMA (Competition and Markets Authority) has cleared the acquisition by Netto Limited of 3 grocery stores from Co-operative Group Limited.

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  3. Will miss Co-op although some products were dearer , the quality of the meat fruit n veg was far superior to Asda .
    Would be interesting to know if we are getting Sainsburys produce at Netto prices? or why would anybody shop at sainsburys. On visiting sainsburys over the past i have found them to be expensive if not more so than Co-op and poorer quality. Would of prefered an Aldi or Lidl but will be interested to see what happens.

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    • No Its rubbish I have a friend that works there that told me that all jobs are safe for a minimum of 1 year and a real possibility that no jobs will be cut at all if the store proves popular with people.

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  4. Cant wait for Netto, only hoping they will be as cheap as aldi or lidl or even asda. Its time to move over co-op as some people nowadays cant afford to do a full shop there. PS Keep you hands off Royal Mail pub because Netto hopefully will blow you away.

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  5. The site is ideally placed for homeward bound commuters going to Hedon or towards Thorngumbald etc. yet the Co-op is woefully under-used. It is a godsend for a commercially aware company like Netto. I can’t wait.

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  6. Safeways, then Morrisons, then Co-op now Netto. Is there a hidden message somewhere here that the site is not really profitable?

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    • Safeways got sold to Morrisions, as part of the deal, Morrisons had to sell some stores off, these were mainly picked up by Sainsburys and CoOp.

      CoOp must be one of the most expensive stores, Booths are a local chain in the Lancashire, Waitrose do price match now. Nobody will be sad to see CoOp go.

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      • I will be sad to see Co op go, as not many supermarkets sell fair trade goods. Saying that I am also looking forward to seeing what this new look Notts will be like. Having gone part time we now shop at Aldi and our 2 weekly bill including fresh meat and veg and milk etc is never above £65. Wonder if Notts will better it?

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  7. Booths and Waitrose are so very expensive. I did my parents shopping in Booths in Ilkley and it was so much more than Tesco Asda. I think a Netto is a great Idea. I shop at Aldi at the moment and it is fabulous, their fresh produce so much better than co-op.

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  8. Just so you are aware even the elected members area committee of the cooperative not informed of this proposal – it’s a sad day what next Hessle and Cottingham stores the new management and structures pay lip service to democracy within the organisation

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    • Hi Charles – I’d left a message with the Co-op’s Press Office regarding this issue prior to publication. They haven’t got back to me yet. I just think Netto have been quicker off the mark and obviously keen to promote their new potential acquisition.

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    • Not at sad day at all Charles. The people of Hedon and the surrounding area deserve a more competitive supermarket than the Co op. They let us down with their over inflated prices and now its time to pack up.

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  9. Fantastic news for the area. Can’t open quick enough! I have shopped in one of the new Netto stores and it was brilliant, similar to the new style Lidl stores which are great. I’m sure it will be a be a lot better for or area than the co op with their extortionate prices.

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  10. They must have waited for ERYC to build the pedestrian crossing between the store and Princess Ave which I have commented about previously, the best place for a crossing was on the Hedon/Preston South boundary near the telephone box. This would have helped all those living on Westlands and the children going to school at Hedon primary and South Holderness. A crossing in the wrong place.
    Wish the store was going to be an Aldi

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  11. Sorry Aly but you do sound like a snob!
    The demographic area really isn’t as wealthy as you seem to think.
    Sainsburys have gone into this joint venture with Netto in a bid to try and entice the middle classes instead of just focussing on people on a low income which is one of the reasons they failed last time they traded in the UK. They also state that they are hoping to tempt the more affluent shopper with deals on champagne, wine and chocolate.
    They have realised that people these days are keen to make savings and are constantly shopping around to save pennies and reduce waste. They are back in a bid to compete with their rapidly growing German rivals Aldi and Lidl.
    Yes they will employ less staff thats how discounter supermarkets operate.
    You only have to drive up to the Willerby shopping park and compare how busy Waitrose is to both the Aldi and Lidl stores that are situated up there to see how popular these stores are.
    I never shopped in a Netto last time it was here but that was purely because it was very untidy and like you said ‘a food jumble sale’ but I do shop in Aldi and Lidl and save around £30 a week which is a massive saving and the quality of the food is fantastic and I am very picky!
    I for one will certainly be giving Netto a go.

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    • I’m not knocking the discounters, I think the German stores are excellent but there are Aldi’s in Preston Road and Withernsea, I was stating that there is a gap in the market for a “quality” supermarket in the area. You’re making me out to be one of these “I don’t want one of those stores in my town” types.

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      • Iagree Aly we need a good super market in the area. Ihope that Nettos have something good for the store with it’s size.

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      • I don’t think Aly is being a snob; I don’t think her point was a ‘class-based’ one, purely a comment about the quality of the products Netto (used to?) sell. I’d be interested to know if people buy their fresh fruit, veg, meat etc at these supermarkets? You may well find that our local greengrocers, butchers etc have equally good, if not better, produce at prices that are competitive. Perhaps instead of everyone extolling the virtues of various international chains, we should be bigging up our existing independent small shops?
        Ps. In defence of ‘little’ Co-op, they’re a godsend for ‘local’ shopping without a car. Good choice and the staff are nice 🙂

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    • These new Netto’s are a lot better than they used to be but Aly is right a Waitrose or Sainsburys would have done well on that site. The point raised about levels of staff is a fair one, discounters will employ less staff than regular stores, it’ll be disappointing is there are jobs lost.

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  12. I imagine this incarnation of Netto is slightly better than how it was last time which was basically a food jumble sale. I’d expect being a discounter that they’ll employ less staff than the Co-Op. Not wanting to sound like a snob but a Sainsburys (like the one at Pockington) Booths or a Waitrose would suit the demographic of the area rather than Netto.

    Anything is better than Co-Op.

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    • Co-op are not tidy at all Janice. All they do is hide their rubbish out of site, near the delivery entrance in cages. This then ends up in neighbouring property whenever there is the slightest breeze! I have cleared more cardboard and plastic wrapping from my garden than I care to remember, especially since the Co-op took over from Safeway. Hopefully Netto will invest in some proper bins and refuse collection rather than use the delivery lorries to take away their store waste.

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