Spain's DIA Introduces 2018-2023 'Strategic Plan' To Turnaround Fortunes
Spanish retailer DIA has outlined details of its 2018-2023 strategic plan, The New DIA, which will focus on the 'transformation, modernisation and future' of the retailer, built around a renewal process focusing on several main pillars.
Firstly, the group said that is seeking to transform its commercial offering, 'with the aim of placing quality, competitive prices, and proximity at the heart of ‘The New DIA’s’ offer'. This will include strengthening its private label offering, boosting its fresh produce offer and making prices more competitive, it said.
It also seek to devote more attention to customer loyalty, and better in-store service, with stores 'modernised to meet customer needs, where and when required'.
The strategic plan will focus on the 'effective execution of store projects', launching a new store format that is ' modern and comfortable', as well as delivering an online service in 'the shortest possible timeframe'.
The retailer will also seek to 'strengthen the relationship with franchisees to improve the business model', and 'renew and strengthen' its company culture, placing more focus on offering more than just good service.
Adhering to these pillars, the company said, will enable DIA to deliver 'average single-digit sales growth', improved EBITDA from 2020 onwards, and recovery to company levels from 2020.
"Our new strategy is a transformational plan articulated around better offer, improved service and great experience for our customers," said chief executive Borja de la Cierva.
"It is rooted in our fundamental strengths, yet the way we do business, the organisation and its culture will all undergo significant changes to help us regain credibility and ensure we remain the preferred choice for consumers."
The group announced the strategic plan as it posted full year results that included a net loss of €352.6 million for the group, and an increase in its debt levels to €1.45 billion, €506 million higher than at the end of 2017.
The group's comparable sales fell by 3.6% in full-year 2018, with gross sales in its core Spanish market falling by 2.4%.
© 2019 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.