October 27, 2020

Dia increases its sales by 2.2% until September despite having 500 fewer stores


Madrid

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The Dia group has advanced the sales made in the third quarter of the year. Specifically, the supermarket chain, which will make the third quarter results official on November 11, has increased its turnover in July, August and September to 1,679.2 million euros, 2.5% more compared to the same period last year. Furthermore, comparable sales, that is, those made in stores that have been operating for at least one year, grew 6.3%. For the year as a whole, the group’s total turnover increased by 2.2%, to 5,194.5 million euros, while comparable sales increased by 7.9%.

All this growth in turnover has occurred despite the fact that the company has 500 fewer stores than a year ago, due to its optimization plan. In addition, another handicap in this third quarter has been the greater paralysis of international tourism, important for the stores that the group has in Spain and Portugal.

The president of the company, Stephan DuCharme has expressed that “Dia has continued with its positive trajectory during the third quarter and in the accumulated of the year, thanks to the continuous transformation efforts that have been carried out and that have focused on the improved supply of frescoes to customers. The lower levels of international tourism during the high holiday season, which has been visible in the level of store traffic, have not had a material impact on our annual performance to date in Spain and Portugal, since an increase has been maintained at the level of the average shopping basket and we continue with our aim of becoming the proximity offer chosen by customers ».

By country, Spain continues to be the chain’s most important market. Thus, the turnover in our country reached 1,101.5 million euros in the third quarter, 4.9% more, although the number of stores has decreased by 8%. In addition, comparable sales grew 7.6% due to “the improvement in the assortment and in the distribution of the stores that support the new supply of fresh products.”

For its part, Portugal increased its net sales by 4.2% and comparable sales by 1.1%. “The new operating model and the optimization of the assortment supported the positive Like-forLike data, which has counteracted the negative impact of the lower levels of tourism in the main cities”, they explain from the company. As for Brazil, despite the fact that sales grew by 20%, the devaluation of the Brazilian real meant that sales ended up being 15.8% lower. In the case of Argentina, sales grew 17.3%, but comparables fell 3.5% due to “low consumer confidence and low consumption levels.”

The supermarket chain is immersed in a process of changes to get out of the crisis in which it has been since October 2018. Specifically, it recently presented its new franchise plan, with which it has the goal of opening 500 new in three years and double your profitability. In this sense, the company has explained that in Spain the new franchise model has already been implemented in more than 700 stores as of September, which represents 65% of the country’s franchises. In Portugal, the changes have been made in 145 stores, 60% of the franchises in the Portuguese country.

Within that restructuring plan, the company also announced this week that it will negotiate with the unions the low volunteer 400 jobs at the company offices.

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