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C Butt still in discussions as Asda completes Netto integration

  • 16 November 2011
  • By Christopher Walton

Northamptonshire-haulier C Butt says it is still in discussions with Asda over its involvement in the distribution operation to Netto stores.

C Butt, which signed a five-year deal to cover Netto’s logistics in September 2009, as well as committing to a £9m investment in 63 lorries and 96 reefers, ware unable to comment further at this stage.

Asda has completed the integration of the Netto chain into its business, which has created a 180-strong Asda Supermarket division.

Integrating Netto into Asda has taken less than a year, with around eight stores per week being refitted and reopened at the peak of the integration. The first stores opened in Wakefield and Worksop in May 2011, with the final one set to be completed on 21 November in Southampton.

Asda national transport manager Chris Hall says that distribution to the new stores needs a different approach to traditional Asda superstores, with multi-drops being essential, and all deliveries being on wheels rather than whole pallets.

“We have stripped out all the back-of-house space for merchandising so there isn’t space to hold stock there; it’s all just-in-time replenishment,” he says. “The product range is three or four times greater than Netto had.”

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Article source: http://www.roadtransport.com/Articles/2011/11/16/139741/c-butt-still-in-discussions-as-asda-completes-netto-integration.htm