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Retail

Spain's DIA Continues To See Recovery, With Like-For-Like Sales Up 6.3%

Spanish retailer DIA has posted like-for-like sales of 6.3% in the third quarter of its financial year, as it continues its recovery process.

The retailer saw a 25.3% increase in average basket sales during the quarter, largely due to the COVID-19 pandemic, which more than offset a 15.1% decrease in store traffic.

Net sales were up 2.5% to €1.68 billion, boosted by 'ongoing transformation efforts', and despite the group operating a smaller store network than at the same time last year.

Improved Experience

“DIA had a good quarter in terms of topline performance as our ongoing business transformation continues to deliver a real improvement in what customers see and experience in store, with more fresh produce, better run stores and an attractive private label range," commented Stephan DuCharme, DIA executive chairman.

"In addition to an evolving commercial value proposition, the quarter saw a positive inflection point in DIA's relations with franchisees in Spain and Portugal based on the roll out of a new model that aligns DIA with its franchisees, stabilises the outflow of franchisees and introduces an improved culture of engagement with these important partners."

In Spain, like-for-like sales growth in the first nine months of the year was up 11.8%, while Portugal saw 6.4% growth. In South America, it's Brazil operations saw like-for-like growth of 7.4% in the nine-month period, while Argentina was down 1.7%.

The group said that it has optimised its assortment to focus on its fruit and vegetable offering, with this new fresh-focused concept set to be rolled out to around 1,200 stores across Spain by year-end.

It has also boosted its private label offering in Spain and Brazil, while continuing to focus on cost efficiencies and reducing complexity across its operations, having now sold underperforming operations in Brazil's Rio Grande Do Sul region.

'Second Wave'

With 'second wave' lockdown measures now in place across Spain, DIA said that it has expanded its online and express delivery services to cover 90% of the population in Spanish cities with more than 50,000 inhabitants.

"We are closely monitoring the impact of new lockdown restrictions related to COVID-19, benefitting from lessons learnt during the first wave, and are ready to support the changing needs of our customers in terms of increased at-home consumption and demand for our expanded e-commerce and express delivery offer," commented DuCharme.

"In this sense, we are delivering on DIA's purpose to be closer to our customers and communities, and are working harder, every day, to make this happen with the support of our neighbourhood stores.”

© 2020 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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