Our plan is to open 50 stores a year

In september Netto Polska celebrated the fifteenth anniversary of its presence in Poland and the opening of its 200th store, this time in Szczecin.

Szczecinbiznes.pl: The first Netto store in Poland was opened fifteen years ago in Szczecin. Soon afterwards, the headquarters of the company were also established in our town. Why did you choose this localization?

Kent Petersen: To tell the truth, Szczecin was chosen by chance, mainly because it was situated near the border and not far from our German headquarters. At that time our employees, who were seconded to Poland, preferred to be in close proximity to Germany.  However, now we are very pleased that we launched our activity here, and if we were to start over again, we would also select Szczecin.

Why did Netto decide to start operating in Poland?

In 1995 Poland appeared to be an interesting market. We were watching closely the economic development of your country and we came to the conclusion that discount supermarkets would do well here – several dozen million people lived in Poland and there were no discount stores at the time, which opened up marvellous opportunities for us.

Where, apart from Poland, can we find Netto stores?

We are a Denmark-based company with Danish capital. Now we are operating in five countries: Denmark, Poland, Sweden, Great Britain and Germany. In total, there are approximately 1800 Netto stores, and 201 of them are located in Poland. Our strategy is to expand our business in circular waves, e.g. recently we have opened two new stores in Silesia. We also intend to expand east, but currently the Vistula river seems to constitute our border line. Anyway, we plan to change it soon.

What are Netto’s plans for future in Poland?

We would like to open 30 new stores this year, and another thirty next year. In the following years our plans are to open 50 shops a year, which means that we will need to expand our activity. That is why we continue to look for new plots of land and new locations for our stores. Our aim is to run more and more stores every year and celebrate biannually the opening of another hundred.

It has been rumoured that other networks are willing to take over Netto. Have you considered such a possibility?

No, we are not interested in a takeover of our business, but we take it as a compliment that our competitors are watching us and want to buy us. It implies that they perceive our business as brisk and want to measure up against us. We are not interested in a takeover, because we are very pleased with our business here in Poland and, as I have said, we are planning to extend the network. It does not mean however that we cannot be attracted to the idea of taking over another network. We are on the look-out for good opportunities.

What is the difference between Netto stores in Poland and the stores located in other countries?

The format is exactly the same – if you enter our store, let us say, in Germany, you are bound to recognize it at once.  Nonetheless, some products sold here are typically Polish. As far as the origin of articles goes, 95 percent of what you can find in Netto is manufactured in Poland – practically all the foodstuffs. All in all, you can say that practically, we are a Polish store network. There is one more reason why we may claim to be a Polish company - out of 2800 employees working in Poland only two are non-Polish.

How did the Polish market change over the last fifteen years?

Seen from our perspective, obviously, in towns there are far more shops belonging to various networks. Hence, the competition is stronger and in a sense, it seems as if everyone is up against everyone else. Unfortunately, the customers do not always tell the difference between various types of stores, they tend to mistake hypermarkets and discounts. On the other hand, their awareness continues to grow: they know what they are looking for, they are familiar with various products and prices. We can also observe the general development of your country, from the point of view of both culture and economics. We are extremely happy about it, because it always entails better business.

The two hundredth Polish Netto store was opened at Łukasińskiego street last Thursday. Is that store any different from other Netto stores?

That store is somewhat different as regards its format and it is the first in Poland with such arrangement of products. It covers approximately 700 square meters – several stores are that large – but the vegetable and fruit stands are placed next to the entrance, which is quite new. The solutions applied in cold storage areas are also innovative and they allow better presentation and easier access to products. Apart from that, the range of products and prices are the same as in other Netto stores.

How do you choose the products to be sold in Netto stores?

Our primary rule is to satisfy the basic needs of our customers, in other words, to offer the products that are necessary for everyday living. In this respect we are often guided by the opinions of our customers, we observe changes in demand for various articles, we watch our competitors. Our permanent product range includes approximately 1200 items. Additionally, every week there are 100 – 120 products on special offer, such as for instance, seasonal articles.

Will there be new Netto stores in Szczecin?

We certainly hope so, we are constantly looking for new localizations.

Interviewed by: Paulina Łątka