DIA reaps rewards of new retail strategy
Spanish retailer DIA recorded a 7.6% rise in like-for-like sales in Spain in the third quarter, thanks to an enhanced offer and updated franchise model. According to European Supermarket Magazine, DIA also posted like-for-like sales rises in Portugal (+1.1%) and Brazil (+17.5%), while in Argentina, sales were down 3.5% in the quarter.
Executive chairman, Stephan DuCharme, said,
“DIA continued its positive trajectory in the third quarter and for the year to date, thanks to ongoing transformation efforts centred on delivering an enhanced fresh offer to customers. Lower international tourism levels during the peak holiday season, which was visible in store traffic, did not have a material impact on our year to date performance in Spain and Portugal as we maintained higher average basket size and continued our push to become the go-to proximity offer.”
DIA’s Spanish business recorded sales of €1.1 billon in the period, despite having 8% fewer stores in the period, and dealing with negative seasonal effects. The retailer attributed the growth to improved assortment and store layouts, while a new franchise model has been rolled out in over 700 stores.
A similar strategy has been applied in Portugal, where sales were up to €156.6 million in the third quarter.
“We are encouraged by the positive sales performance in Latin America with both markets delivering strong net sales performance on a local currency basis. In particular, Brazil continues to benefit from improved supply chain and store operations as well as the rollout of a new commercial strategy. Argentina’s performance remains resilient despite the continued challenging macroeconomic environment,” said DuCharme.