First Half Of 2022 A 'Turning Point' In DIA's Recovery, Retailer Says

By Steve Wynne-Jones
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First Half Of 2022 A 'Turning Point' In DIA's Recovery, Retailer Says

The first half of 2022 marked a 'turning point' in the transformation of Spanish retailer DIA, the group said in a statement, as it reported a 8.5% increase in sales, to €3.46 billion.

In Spain, the group reported a 0.3% increase in net sales in the period, to €2.01 billion, despite its store network having been reduced by 3.9% compared to a year ago.

In Portugal, first-half sales were down 4.5% in the half-year period, to €283 million, with the group's Portuguese store network declining 1.0% since last year.

Sales in Brazil are 13.9% higher, the group added, while sales in Argentina are 53.1% higher, however this was driven by both high inflation and a devaluation of the currency, DIA said.

"The positive evolution of sales during the second quarter allows us to visualise the consolidation of a change that began in 2019 with a profound review of our operating model," commented Stephan DuCharme, DIA executive chairman.


Transformation Process

DIA began its transformation process three years ago, with the introduction of a new store concept, a new value proposition for shoppers and a renewed franchise model.

Franchise stores continue to gain prominence within the group, accounting for 35.6% of total sales in all group stores in the first half, up from 32.2% in the same period in 2021.

As of the end of June, DIA said that it had 1,775 stores operating under a new store model, representing 46% of its proximity network. In Spain, some 1,297 stores are operating under the group's new model.

It also continues to make progress in terms of private-label development, with more than 2,700 new SKUs launched since 2019.


'Challenges Ahead'

“There are still challenges ahead that not only affect DIA but the sector and we cannot ignore them, but at the DIA Group we believe that the challenges presented by our current environment are an opportunity for our purpose of proximity and ambition to be more relevant than ever," DuCharme commented.

"We want to be closer to our clients every day, and help them overcome these times of uncertainty. That is why we work so that our value proposition responds to the local needs of our customers through an easy shopping experience, with a wide assortment that is committed to fresh food, with a high-quality own brand and the best value for money."

© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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