DIA Sees Domestic Sales Slip Back Due To Renovation Programme
Spanish retailer DIA has seen its gross sales under banner in its home market of Spain drop 4.0% (ex-FX effects) in the first nine months of the year, with its Iberia business (including Portugal), recording a 3.4% dip.
The group said that the decline in sales was due to its current store remodelling programme. In the first nine months of the year, the company remodeled 500 DIA Market, DIA Maxi, and La Plaza de Dia stores; a total investment of around €75 million.
Some 600 stores are expected to be remodelled by the end of the year, which the company said will represent ‘the biggest store remodeling programme in the company’s history’.
Overall gross sales under banner for the period were €7.73 billion, a 1.4% increase (ex-FX), following a positive performance in Argentina (+23.0%) and Brazil (0.7%).
Sales in the online channel in Spain reached €40.2m in the first nine months of 2017.
‘In a more competitive climate, DIA Group remains focused on its strategy of offering the customer the best products and services, always at the best price, with a network of modern stores that are adapted to consumers’ changing needs,’ the group said.
Net sales in Q3 specifically were down 0.3% (ex-FX) to €2.17 billion, with underlying net profit down 4.2% for the period.
“We remain focused in pursuing our strategy of putting the customer at the centre of everything we do,” said Ricardo Currás, DIA Group CEO.
“Lower inflation across our markets and significant changes in trading environment in last months in Spain have slowed down our sales growth in Q3 2017. We will not compromise on our commitment of giving our customers the best prices of the market. We believe this is the right thing to do and will help us to deliver on our long term ambitions.”
In Iberia, Currás said that the group has “accelerated the process of store renovations giving our customers an improved experience and new services.
"This, together with a material price investment supports our commitment to return to positive LFL territory of sales in Iberia in Q4 2017, something that we have already seen in the first three weeks of October.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.