Interview Questions: Manager C (Dansk) - Netto's Closure of Operations in UK

INTERVIEW QUESTIONS: Manager C (Dansk)
1. Was the decision to close down Netto’s operations in UK because it was not
making enough business? Did it not live up to expectations? Could you
elaborate on this.
We, together with Sainsbury's, set out to trial Netto in the UK to provide us
with the basis to review the business at the end of the trial period. Whilst we
are pleased with the performance of the stores to date, it has become clear to
both partners that the business requires greater scale over a short period of time
to achieve long-term success.
2. What are the challenges that the venture faced?
Reaching scale has been challenging due to appropriate site availability and
therefore we decided together to end the joint venture and focus on other
opportunities within our respective businesses. The Netto store concept is based
on a strong promotional strategy. Promotion accounts for up to 60% of sales in
Denmark and Sweden. This store concept would need some alteration in the
future to fit to the changing discount shopper habits in the UK. According to
research the number of discount shoppers who come to a discount store to buy
an item on promotion has been declining.
3. So what made you make this decision?
British consumers are eager and willing to shop with discount retailers but even