German discount supermarket chain Lidl plans to sell its operations in Sweden and Denmark after failing to reach profitability, according to a media report.

The company has not had it easy in the Nordic markets, trade magazine Market wrote. In Sweden Lidl has invested some 3 billion kronor ($470 million) since the introduction 2003, but is still in the red.

Last week a report said that discount retailer Netto's international division was bidding for Lidl's Swedish operations, including 150 stores. Similar rumors are now circulating about its Danish operations.

In 2008 the German discount retailer pulled out of the Norwegian market it entered just four years earlier. All 50 Lidl stores in Norway were converted to REMA 1000 stores. The chain was also accused of being too secretive by Norwegian standards of openness.

Representatives of Lidl in both Sweden and Denmark firmly rejected speculation that the company's respective country operations would be for sale.

Founded in the 1930s, Lidl operates over 7200 stores worldwide.