Breakfast briefing: Retail news on Netto, Tesco, John Lewis and Asda

Netto retruns to UK in new bid to take on Aldi and Lidl

Netto has claimed it will “set new standards for discount retailing in the UK” as it opens its first UK store in Leeds today.

Netto’s return – a joint venture with Sainsbury’s – comes as rival hard discounters Aldi and Lidl continue to grow at break-neck speed at the expense of the big four grocers.

The Danish discounter exited the UK four years ago but marked its return with a store on Moor Allerton Retail Park in Leeds. It will be followed by a further four this month.

Chief executive of Netto parent company Dansk Supermarked Per Bank said: “We are discount, but with a Scandinavian twist and we hope customers will see that.

“Discount retailing has come of age in the UK and the market can support so many more discount shops. Our competitors Aldi and Lidl have done a great job in helping discount become more mainstream but we will take the concept one step forward.”

Vince Cable raises concerns over Tesco’s treatment of supplier base

Business Secretary Vince Cable has raised concerns about Tesco’s treatment of its supplier base, intensifying the pressure on UK’s biggest retailer as it battles to contain the fallout from its £263m accounting scandal. Sky News has learnt that Cable wrote to the supermarket industry ombudsman in recent weeks to express support for a comprehensive review of the way Tesco deals with suppliers and whether its approach may have contributed to the shock profit overstatement.

In a letter to the Groceries Code Adjudicator (GCA) Christine Tacon, Cable is understood to have said that while it was important not to prejudge her review of the matter, it would be an important exercise and closely watched by both suppliers and consumers. He is understood to have expressed concerns about Tesco’s reputation for behaving robustly towards the companies which supply it, many of which are small or medium-sized businesses reliant on their contracts with the retailer.

John Lewis and Asda unveil new Christmas ad campaigns

John Lewis has unveiled its highly anticipated £7m Christmas ad campaign that features CGI penguins.

The department store group’s festive advert has almost become synonymous with Christmas itself, and garners huge levels of interest each year, although this year John Lewis adopted a more low key approach in unveiling it to the press.

Set to a cover of John Lennon’s Real Love by Tom Odell, the ad features seven year old boy Sam, who buys his best friend – cuddly toy penguin Monty – a penguin playmate, Mabel, for Christmas.

Meanwhile Asda hopes to put a smile on the faces of British families with its Christmas campaign by telling the story of nine familiar festive scenes.

Former Asda employee and X Factor runner up Jahméne Douglas has recorded the soundtrack for the campaign, a cover of Louis Armstrong’s jazz classic ‘When you’re smiling’.

Asda’s campaign premiers during tonight’s episode of Emmerdale with a 60-second brand ad that seeks to set the scene to its marketing campaign with a spot called ‘The story of Christmas smiles’.