INTRODUCTION Netto is a Danish supermarket group, opened its first store in December 1990, since then Netto has been trading in the UK successfully. Although it is pitched at the more affluent middle market in it's own country, in the UK it has aimed exactly for the budget end. Everything Netto does is designed to keep prices down. The stores are very simple, many looking like warehouses, and products are generally displayed either on the pallets …
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…its stores, still they are not viewed as a good substitute for the branded products. Building brands need good media coverage and expenses, which a company like Netto will find unaffordable. Conclusion: To be successful in the future the company needs to be innovative and needs to have a good knowledge of customer tastes. Low pricing alone might not help. Cutting operating expenses further and expanding their product line can be the key to success.