Spar, the German grocery store chain, has appointed Deutsche Bank to sell its 1,100 Netto discount stores in Germany in a deal that could be worth between €500-€750 million.
The company operates 2,500 Spar and SuperSpar supermarkets in Europe. It plans to sell the Spar Netto Network in Germany.
Netto's German stores had sales of about €2.5 billion last year and retail executives said that comparable businesses were commanding valuations of 20-30 per cent of sales.
The decision to sell the stores has come amid fierce competition from rivals Aldi and Lidl. The discount sector accounts for approximately 30 per cent of the German market.
The German grocery market has long proved difficult for German retailers. Wal-Mart mishandled acquisitions in Germany and is losing money after five years.
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