Netto stores are expected to be trading under the Asda brand fascia by summer 2011. The stores will be refurbished and fully integrated into Asda’s business.
Asda says the deal is a “significant step” in its ambition to grow its smaller store supermarket division and offers customers benefits in price, quality, range and service.
The Wal-Mart owned supermarket says it will “satisfy demand for the retailer in a much broader range of communities” throughout the UK and “underlines Asda’s commitment to its smaller stores division”.
Asda president and chief executive Andy Clarke says: “Customers will benefit from low prices on a significantly broader range of quality products, complemented by the wide range of services we offer in all our smaller stores. With the transformation in range, customers will be able to complete a full weekly shop.
Asda says it will double the number of staff employed at each store.
Dansk Supermarked, which currently owns the Netto Foodstores chain is expected to focus on growing its business in Scandinavia and Northern Europe.
The agreement is subject to regulatory approval and Asda expects the deal to complete later this summer.
Netto was established in the UK in 1990 and operates 193 stores at an average 8000sq ft.