Asda to open 168 stores as Netto name disappears

The new space is a combination of planned growth and the acquisition of 147 Netto stores which will all trade under the Asda supermarkets banner.

The retailer will also open seven new Asda Superstores, four new Asda Livings, 10 new Asda Supermarkets and five extensions to existing stores.

The chain entered into a contract last week to acquire six stores from Focus DIY, which will be converted into supermarkets subject to approvals and local planning consents.

The Office of Fair Trading has demanded Asda sell stores in 47 locations for competition reasons - 25 upfront and the rest after the deal.

Asda has already agreed to sell five stores to rival supermarket Morrisons, one to Iceland and 19 to independent chain Haldanes.

Asda, which is owned by American retail giant Walmart, agreed a £778 million deal to buy Danish discount chain Netto’s 194 UK stores in May.

The acquisition will allow Asda, which typically runs large supermarkets in out of town locations, to greatly expand its portfolio of smaller stores.

Asda said the 147 Netto stores have an average size of 8,000sq ft, whereas its typical store size is 38,000sq ft.

The retailer plans to increase the range in the stores from 1,800 lines to 10,000 lines and will double the amount of fresh food to allow a full weekly shop.

Asda chief financial officer Judith McKenna said: “The combination of acquiring 147 Netto stores together with our organic growth plans means we will be able to save customers more money than ever before.

“We’ll also create 1,500 jobs as we convert all of the Netto stores into Asda supermarkets.”

Netto, which is owned by Danish shipping giant Maersk, agreed to sell its UK operations to Asda to allow it to concentrate on other markets in Europe.

Netto’s stores are mainly in the north of England and the Midlands, with its head office near Wakefield, West Yorkshire.

The first converted Netto stores - in Worksop, Wakefield and Stainforth - will open in May.