Spain's DIA Continues Transformation, As Like-For-Like Sales Rise
Spanish retailer DIA has posted a 7.6% increase in like-for-like sales in its home market in the third quarter, as its business transformation continues.
The retailer also saw like-for-like sales rise in Portugal (+1.1%) and Brazil (+17.5%), however its Argentina business slipped back (-3.5%) in the quarter.
The group said that its Spain and Portugal business benefited from an 'enhanced fresh offer and updated franchise model' in the period.
“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," commented executive chairman Stephan DuCharme.
“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."
On a reported basis, DIA's Spanish business posted a 4.9% increase in sales to €1.1 billon in the period, despite having 8% fewer stores in the period, and dealing with negative seasonal effects.
It said that improved assortment and store layouts helped boost like-for-like growth in the quarter, while a new franchise model has been rolled out to more than 700 stores.
Portugal, which saw a 4.2% increase in like-for-like sales to €156.6 million, has also reaped the benefits of am optimised assortment and new franchise model, while Brazil and Argentina also saw net sales up on a local currency basis.
“We are encouraged by the positive sales performance in Latin America with both markets delivering strong net sales performance on a local currency basis," DuCharme added. "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.”
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