Spain’s DIA Group has closed 25 Minipreço stores in Portugal, resulting in the loss of approximately 159 jobs, due to ‘complex macroeconomic scenario with pressure on costs and prices.’
The retail group said the closures are ‘duly framed in the effort to adapt, modernise and balance the operations of DIA Portugal, with the aim of better preparing the company for current and future challenges arising from the current economic situation in the country,’ according to media reports.
The unions claim that the job losses were ‘avoidable’ and that the financial situation of the company is the result of bad management,’ according to a report in Economia Online.
In the last two years, the multinational company with establishments in Spain, Portugal, Brazil and Argentina accumulated losses of over €620 million.
In Portugal, net sales reached €283.1 million in the first half, 4.5% below the €296.3 million generated in the same period last year, due to the reduction of stores and mobility restrictions.
EBITDA dropped by 0.80% in this period, from €5 million to €1 million.
On 30 June, the total number of DIA Portugal stores was 494, including 292 franchised outlets.
DIA Group confirmed its ‘intention to continue to invest in Portugal, readjusting its operation to the current reality in order to ensure the future success of its operation.’
A report in Portuguese daily Jornal Economico claims that part of the Portuguese operation is up for sale, with negotiations with prospective buyers already underway.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.