Business news

New Netto store at Hedon co-op site for early 2016

Netto snipNETTO UK has confirmed its intention to acquire the Co-op store on Hull Road and refurbish and re-brand it as a low-price discount store with a Scandinavian twist. The Danish-owned retailers Dansk Supermarked, in a joint venture with Sainsbury, believe that their new store will bring something really unique to customers.

If successful, Netto says that all their new stores will offer outstanding value, great fresh food and an in-house bakery with delicious fresh Danish breads and pastries.

The company says that there is a “risk of redundancy” for existing staff at the co-op, but will be consulting with staff representatives on avoidance and mitigation measures.

A Netto spokesperson, told the Hedon Blog:

“We are delighted to confirm that we will be bringing our freshly baked pastries, 100% British meat and unique Scandinavian products to the people of Hedon.

“The Competitions Markets Authority (CMA) has cleared our purchase of the Co-op store on Hull Road, HU12 8DJ and we are now working with the Co-op to finalise timings for when the store can open and be re-branded as Netto. We’re still in the early stages of planning and are hoping to open in the early part of 2016.

“It is our intention to close the store on completion of the purchase for an extended period of time while we refurbish and rebrand. Unfortunately this means that all roles are at risk of redundancy as a result of these proposals.

“We would like to emphasise that this is not to say that employees will be made redundant. We are undertaking consultations with their representatives regarding our proposals and are looking at ways of avoiding redundancies or mitigating the consequences of any dismissals that have to take place.”

Visit: www.netto.co.uk

BACKGROUND:

The first Netto store opened in 1981 in Copenhagen (Godthåbsvej) and its first UK store opened in 1990.

Netto owned by the Danish retailers Dansk Supermarked left the UK market in 2010 but Netto UK has been reformed and together with Sainsbury returned to the UK in 2014. The joint venture aims to have opened 15 new stores by the end of 2015.

Netto employs 32,000 people in Denmark and over 10,000 in other countries (Germany, Poland, Sweden and the UK).

Netto says that shopping at their stores should “save you money, provide you with a few Scandinavian surprises, and always leave you smiling”.

On the 24th July the CMA (Competition and Markets Authority) cleared the acquisition by Netto Limited of three grocery stores from Co-operative Group Limited, which included the one in Hedon (also New Edlington and Leeds).

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.

22 replies »

  1. It goes to show the lack of investment the CoOp put into that site. I think it looks loads better and safer with all the new lighting. Well done Netto!

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        • Thanks Ray. One other point, I was under the impression that the application for the signs said one illuminated store front sign and two non illuminated signs, it would appear that the one you photographed is illuminated and I see there is an electrical connection to the other on the corner near the garage. Have just looked but the planning application has now been taken down 😦

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          • Hi Peter. The application referred to: Display of 2 internally illuminated fascia signs, 1 non-illuminated entrance sign, 1 non-illuminated goods in entrance sign, 2 illuminated totem signs and 3 non-illuminated hoop signs.

            The application was online at the East Riding Planning Portal http://www2.eastriding.gov.uk/environment/planning-and-building-control/planning-disclaimer/ this morning at 15/03060/PLF, but not the accompanying documentation 😦

            Netto’s have said they will send me some information about the opening – so expect that will come through early in the New Year.

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            • Thanks again for that Ray, must admit they have certainly put some time and effort into tidying up the outside area to good effect, we now await the “Grand Opening!”

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  2. Any information on the rumour that a “Pound Shop” will be taking over one of the spare unit at the Netto store?

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  3. The planning application to make alterations to the former Co-op shop front, putting in a new bin store and installation of condenser unit has been approved by the East Riding Council. Planning Permission has also been approved for new Netto signage.

    It has been suggested by a local parish councillor that the store will open 21st January 2016. We have contacted Netto for a news update.

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    • Ray, Any information as to what the two additional units will be? I heard that one will continue as a cafe but has this been confirmed?

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    • It’s being split into three units, Phil, with Netto taking one and letting out two others. The Planning Application information (re: alterations to the shop front, a new bin store and installation of condenser unit) includes a layout plan and can be viewed on the East Riding Planning Website Ref: 15/03060/PLF

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  4. As this does not appear to be an ongoing business, I cannot see that TUPE regulations protect the workers and the blame and responsibility for the redundancies lies entirely with the Co-operative and their decision to withdraw their rather good, useful and well staffed facility from this area. It is my personal opinion that their ‘ethical’ and ‘social’ values apply only when it suits them. I will miss the Co-op, the quality produce, and excellent caring staff.

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    • Was keeping an eye on the wine and spirits, hoping to pick up the odd bargain before it closed. Went last night to be greeted by empty shelves !!!

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  5. Staff have been informed there will be redundancies. So why NETTO are saying “RISK?”. Why are staff been told snippets of information when supermarket tops teams KNOW what is going on because they INFORM the newspapers more?
    It’s about time senior managements got the “supermarket info” in order, these are peoples incomes your talking about. So RISK is wrong. NETTO to split the store in to 3 retail outlets.
    Plus HEDON/ ERC should back the staff, but all there bothered about is planning and cash.

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    • Netto say they’re talking to staff representatives. I hope that means USDAW, this is exactly the sort of situation where you need a union to represent you and get straight answers and a better deal.

      Workers rights have been so weakened its quite possible they could make all the staff redundant and just re-employ some when the store is ready to reopen. And the ones who get a job back are meant to be grateful !
      Hopefully Netto will see the opportunity of retaining good experienced staff through the refit as a better investment than paying them all off !
      Its not really a matter for ERCC or Hedon ( especially as its in Preston South) – staff should look to their trade union to protect them from being exploited.

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  6. It’s also a shame that netto are lying through their back teeth as everyone has already been told they are to be made redundant as of 23rd September

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      • It’s obvious they are going through the motions and saying ‘at risk’. If they shop isn’t going to open again until early next year and there are no other stores for them to work in (nearest Netto is Doncaster) it’s obvious that they will go. 50 more people on job seekers I think.

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  7. A pity the Hull Daily Mail published a photo of the Co-op store in Market Place Hedon along with their account of this in today’s issue of the paper!

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