CREATING THE FORMAT OF THE FUTURE Jeff Salter, Head of Store Concept & Int. Marketing, Netto International | Salling Group
1 WHO IS SALLING GROUP?
100% owned by 11 m. Shopping trips 53.000 employees +1.500 stores in 59,4 bn. DKK in the Salling each week in 4 countries 4 countries revenue in 2018 Fondene
Formats E-commerce
1.369 Netto in 4 countries
103 føtex
19 Bilka
2 Salling
30 Starbucks & Carl’s Jr.
26 fætter BR
2 WE ARE 100% OWNED BY THE SALLING FOUNDATIONS
Before 2014 January 2014 November 2017
Freedom to fully invest in improving everyday life for our customers
3 NETTO - A PART OF SALLING GROUP AND AN INTERNATIONAL RETAILER
FIRST MOVERS ON DISCOUNT IN DK & 1981 Dec. 1990 2002 INTERNATIONAL Sept. 1990 1995 EXPANSION
TODAY, WE OPERATE MORE THAN 1.350 507 371 163 344 STORES #stores, 2019 #stores, 2019 #stores, 2019 #stores, 2019
4 LETTING CUSTOMER TRENDS INSPIRE FORMAT DEVELOPMENT…
5 WE USED KEY MARKET TRENDS AS OUR STARTING POINT…
▪ Health ▪ Convenience ▪ Proximity ▪ Authenticity ▪ Scandinavian Key market trends ▪ Digital & online life ▪ Environment
6 EXAMPLES OF HOW WE USED THE TRENDS FØTEX FOOD CONVENIENCE
7 EXAMPLES OF HOW WE USED THE TRENDS BILKA & BILKA TO-GO
8 EXAMPLES OF HOW WE USED THE TRENDS NETTO SCAN & GO
Netto Scan & Go
9 EXAMPLES OF HOW WE USED THE TRENDS SKAGEN FOOD (MEALBOXES)
Skagenfood is the second largest meal box player
10 EXAMPLES OF HOW WE USED THE TRENDS SALLING GROUP AND RESPONSIBILITY
Danmark Antibiotic- Hiding Optimizing mod free pork in tobacco in all use of Plastic Madspild Netto stores
11 EXAMPLES OF HOW WE USED THE TRENDS NETTO 3.0
12 OUR STARTING POINT FOR CREATING NETTO 3.0 BUILDING ON OUR STRONG HISTORY
14 NETTO IS LEADING ON FINANCIALS, BUT WE ARE LOOSING THE LOYALTY OF OUR CUSTOMERS
Brand reputation rank of Netto and key competitors across markets
1
2
Top Top 3 competitors 3
6 7 6 6 Netto’s Netto’s rank
Out of 6 competitors Out of 7 competitors Out of 6 competitors Out of 7 competitors
15 NETTO – A DISCOUNTER BY NATURE… THE DNA OF NETTO…
Bold Scandinavian Easy Value
Bold decisions Scandinavian Easy to park High quality Bold attitude values Easy to navigate Low prices Bold communication Scandinavian Easy to check-out visuals Easy to operate
17 18
OUR KEY STRATEGIC INITIATIVES…
1 A more pleasant shopping experience in our stores
2 Best discounter in F&V
3 New Spot concept SPOT
4 Improved range and Private Labels of high quality
5 Best on Health, Convenience and Organic
6 Motivated colleagues and improved leadership culture
7 Taking more responsibility
20 OUR KEY STRATEGIC INITIATIVES…
1 A more pleasant shopping experience in our stores
2 Best discounter in F&V
3 New Spot concept SPOT
4 Improved range and Private Labels of high quality
5 Best on Health, Convenience and Organic
6 Motivated colleagues and improved leadership culture
7 Taking more responsibility
21 A more pleasant shopping experience in our 1 stores - Netto 3.0 NETTO 3.0 IS A PARADIGM SHIFT FOR NETTO – FOCUSING ON THE TOTAL CUSTOMER EXPERIENCE
Key changes in Netto 3.0
A New and modernized store layout
B Significantly larger fruit & vegetables department
C Reduction of Spot and placement near the regular range
D New Scandinavian design principles for look & feel
E New logo and colours
F Focus on healthy and plant-based products
23 A New and modernized store layout
Fresh zone: Nonfood Groceries: Fruit & vegetables Assortment Assortment & spot Fresh meat & spot Chilled, Fresh bread Plant-based & Convenience Frozen
Personal care Assortment & spot
Confectionary Beverages: Assortment & spot Assortment & spot Significantly larger fruit & vegetables B department Reduction of Spot and placement near the C regular range New Scandinavian design principles D for look & feel
27 E New logo and colours
28 F Focus on healthy and plant-based products
29 30 31 THE WORK GOING FORWARD WITH NETTO 3.0
Key market trends Key changes in Netto 3.0
▪ Health 1 New and modernized store layout
▪ Convenience 2 Significantly larger fruit & vegetables department
▪ Proximity 3 Reduction of Spot and placement near the regular range ▪ Authenticity 4 New Scandinavian design principles for look & feel ▪ Scandinavian
▪ Digital & online life 5 New logo and colours
▪ Environment 6 Focus on healthy and plant-based products
32 THANK YOU!
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