Dia redesigns its stores and brand to focus on the local customer

Dia Supermarkets gives a twist to its business in Spain to focus on customer proximity. A commercial strategy that has been undertaken with store renovations, better bet in design and quality of its own brand, and the unification of its sales formats, with the elimination of Dia Market and Dia & Go. In the words of its CEO, Ricardo Álvarez, “we want to be the benchmark local supermarket for Spain. We are 15 minutes from 65% of the Spanish population and we want to offer the fastest shopping experience in our country.” With this objective, the brand has been immersed in a transformation process for two years, in which it has already undertaken the renovation of 1,000 stores, 800 of them during the past year. In these new establishments, the bet goes through a redistribution of all areas and the sales room, with more checkouts to streamline the customer's shopping experience. The other strong point of Dia's new starting point is in the renewal of its own product brand. The distributor has already redesigned the 'packaging' of more than 1,500 products and wants to reach the renewal of 2,500 references during the next year. They expect their assortment to represent half of the items available in their stores. The other main axis in the product section will be in its commitment to fresh products, for which it assures that it has eliminated intermediaries in the purchasing processes, "acquiring items directly from markets and producers throughout Spain." Thus, they estimate that 96% of their suppliers are Spanish. All in all, the CEO of Dia España hopes "to be able to compete with its own brand, offering the highest quality-price of products, knowing that there are great competitors that do it very well," he acknowledged yesterday during the presentation of the renovated 1,000th store under this new concept. Nor do they forget e-commerce, which already represents 3% of their sales in Spain. “This summer we will expand capacity in the coastal area, we are committed to scheduled delivery in 24 hours, which is something very differentiating, and ultra-fast deliveries in the large ones,” Álvarez stressed. Price increases The CEO of Dia, Ricardo Álvarez, also pointed out the difficult price situation that the sector is experiencing in recent times, acknowledging an average rise in products of 8.5% in the last year and a half «compared to the 10% on average of the entire market”, as a recent OCU report pointed out. Some price increases that are causing a "great transfer" of consumers towards the private label, according to Álvarez. In any case, they expect the price situation to stabilize in the coming months. In products dependent on the Russian and Ukrainian market, such as sunflower oil, "once other producing countries have been able to absorb the demand." Regarding a possible boycott of the brand due to its links to the Russian tycoon, Mijaíl Fridman, (shareholder of Letterone, owner of Dia) Álvarez acknowledges that the reputational damage "has not benefited us" although he assures that they have not noticed it with the client. In his defense, the manager wanted to remember that the owner fund is not Russian, but Anglo-Luxembourgish. “Fridman is just one of its shareholders. He does not do any type of active management beyond putting the money for a project that he thinks has a future ».

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