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Netto’s UK failure hits Dansk Supermarket hard

Christian Wenande
April 20th, 2017


This article is more than 7 years old.

Dansk Supermarked took a 200 million kroner loss, but still improved overall last year

A costly affair (photo: Ian Russell)

Dansk Supermarked’s decision to close all of its Netto stores in the UK last year was a hefty bill to foot.

The decision cost the supermarket chain owner 200 million kroner, although it still ended 2016 with a 500 million increase in its turnover to 58 billion kroner.

Netto actually operated in the UK from 1990 to 2011, before returning again in 2014 as part of a co-operation with the British supermarket giant Sainsbury’s.

READ MORE: Netto weighs in to cut food waste

Digital dare
Dansk Supermarked has decided instead to focus its efforts on gaining more market share in Sweden and Poland, where more Netto shops are expected to open.

The supermarket chain has also indicated that it will attempt to solidify its presence in Denmark by embracing more digital initiatives and further invest in its physical shops.

Dansk Supermarked aims to become the leading online goods seller in Denmark, according to the chain’s CEO, Per Bank.

“Our financial strength makes it possible to hedge our bets on going digital, while still continuing to develop our products on offer and reduce prices to the benefit of our customers,” Bank told TV2 News.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”