Spanish supermarket group DIA has contracted investment bank Societé Générale to explore the possible sale of its business in Portugal, according to local dailies El Economista and Expansion.
Reports suggest that DIA is considering the divestment of its Portuguese retail business, Minipreço, due to the weak financial performance of the division.
Of the four markets in which it is present, Portugal saw the lowest growth in 2022, reporting sales of €596 million, an annual increase of 0.5%.
This compares to 5.4% growth in Spain to €4.43 billion, 10.9% in Brazil to €889.5 million, and 30.8% growth in Argentina to €1.36 billion.
'Advancing Its Transformation'
DIA has not commented on the news, stressing that it is focused on ‘daily business operations to continue advancing its transformation’, while ‘continuously evaluating various investment and divestment opportunities, without any decision in this regard having been made to date.’
DIA operates 499 Minipreço supermarkets in Portugal, of which 297 are franchises, as well as operating four distribution centres, employing around 3,000 people.
Reduced Store Network
Last year, DIA reduced its store network in the country by 7%, closing 25 Minipreço stores.
The group also sold its perfume store chain Clarel (encompassing 1,015 stores) for €60 million, to C2 Private Capital, as well as a tranche of 235 large-format supermarkets to Alcampo (Auchan), for €267 million.
The divestments are part of the Spanish retailer’s increased focus on proximity, as part of which it is renewing its concentration on its core business, food distribution, and neighbourhood stores.
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