Morrisons chief executive Dalton Philips has admitted that Sainsbury’s decision to relaunch Netto discount supermarkets in the UK was a “smart move”.
The under-pressure boss of the UK’s fourth-biggest supermarket is facing his own battle with discounters Aldi and Lidl, losing more customers to them than any other rival.
He said: “I think it’s a recognition of these structured shifts in the market and that this channel is growing so quickly you need to be a part in it.
“I assume there is a recognition that they can’t take growth from their current stores. So, they are left with a conundrum.
“Overall, what Sainsbury’s are doing is recognising that this is a shift and I think it was a smart move,” he added.
Philips made his comments at the British Retail Consortium’s retail symposium as he explained why a price war that has seen Morrisons cut 12,000 prices is the right way for his stores to tackle the rapid growth of discounters.
Last week, Sainsbury’s announced that it would open five Netto stores in the north of England by the end of the year, bringing the supermarket brand back to the UK for the first time since 2010.
