Danish company sells U.K. supermarket unit to Wal-Mart’s Asda
Copenhagen Dansk Supermarked has sold its British supermarket chain Netto Foodstores Ltd. to Wal-Mart Stores’ subsidiary Asda Stores Ltd. for 778 million pounds ($1.1 billion), it said Thursday.
Dansk, a division of the Danish container shipping and oil group A.P. Moller-Maersk, said it is selling agreed to sell Netto to Asda as part of an effort to focus on the development of its business in Denmark, Sweden, Germany and Poland.
Asda said it will convert the 193 Netto stores in Britain into Asda stores and integrate them into its new supermarket division for units smaller than 25,000 sq. ft.
The company said the acquisition is part of its strategy to satisfy demand for its stores in a broader range of U.K. communities and its commitment to its smaller stores division.
The deal is subject to regulatory approval in Britain. Asda said it expects to complete the transaction after approval from the Office of Fair Trading later this summer.
Dansk Supermarked CEO Erling Jensen said the Netto stores in the British branch have been “profitable.”
Dansk Supermarked, which is Denmark’s largest retail group, will own more than 1,100 stores with 40,000 employees after the transaction.
CITY OF COMMERCE, Calif. Ninety-nine Cents Only Stores reported that retail sales for its consolidated operations including Texas increased by 3% to $328.6 million in the fourth quarter and same-store sales increased 3.5%. Consolidated net income increased by $9.9 million to $16.9 million, or 24 cents per diluted share, versus $7 million in the prior year, or 10 cents per diluted share.
For the full fiscal year ended March 27, retail sales for fiscal 2010 were $1.31 billion, compared with $1.26 billion for fiscal 2009. Same-store sales increased 3.9% in fiscal 2010. Net income for fiscal 2010 was $60.4 million, or 87 cents per diluted share, compared with net income of $8.5 million, or 12 cents per diluted share, in fiscal 2009.
For fiscal 2011 the company said it expects positive same-store sales in the low single digits and plans to open approximately 5% more stores in its existing markets, primarily in the second half of the year. The company said it believes that revenue growth in fiscal 2011 will primarily result from new store openings and increases in same-store sales.
Target announced that it will offer an exclusive collection of products inspired by the upcoming film, Toy Story 3.
The Toy Story 3 collection feature more than 100 products including the “To the Rescue” Nintendo DS video game, Toy Story Woody Role Play, Glow in the Dark Space Alien, 7-pack of Andy’s Toys, Lego Pizza Planet Truck Building set and Toy Story Chutes & Ladders, the company reported.
“We are pleased to offer exclusive ‘Toy Story 3’ merchandise and be the shopping destination for our guests,” said Casey Carl, VP merchandising manager, toys and sporting goods. “Target is excited about the large assortment of products at affordable prices from the highly anticipated movie.”
The Toy Story 3 collection will be available at Target nationwide and on Target.com in May 2010.