Sainsburys Enters Discount Market

Sainsburys Enters Discount Market.

With a lot of major supermarket chains being beaten by discount supermarket chains such as Aldi and Lidl, it seems that Sainbury's are embracing the idea. In a new plan the Supermarket will partner up with Danish discount grocery chain Netto.

The two chains will embark on the new venture and aim to launch 15 new stores by the end of 2015.

This news came following Sainbury's reporting a second consecutive quarter loss. Both stores will be investing £15.5m into the venture and the first store will open in the North of England in the winter.

Netto left the UK grocery market in 2010 after 14 years in the market, it sold all of its stores to Asda in a £778m deal.

The new deal will allow Netto to be able to sell a limited number of branded goods such as Coca-Cola and the rest will be sourced from Netto's parent company and its own branded goods.