Spain-based discounter Grupo DIA has announced its Q3 2019 results. The results show negative sales and reported an operating loss of €356m and a net loss of €504m.
DIA announced its Q3 sales results saying overall sales declined by 7.4% to €5.1 bn and like-for-like (LFL) sales decreased by 8.1%.
The group highlights the sales in Spain declined by 7.8% to €3 bn and LFL sales reduced by 6.8%. Meanwhile, in Portugal sales decreased 7.5% to €447m and LFL sales reduced by 4.7%. In addition, sales in Brazil declined by 15.9% to €862m, with LFL performance decreasing by 10.3%. Although, in Argentina sales grew 47.5% to €644m, even though LFL sales fell by 10.4%.
Causes of the negative performance
The DIA group proclaimed it had highlighted reasons why a negative performance was recorded in Q3. Sales have declined due to out of stock levels in its warehouses. Furthermore, the retailer closed a total of 757 poorly performing stores, throughout the nine months of 2019. Separately, in Spain and Brazil the group started a de-franchising scheme which planned to improve quality, which resulted in a loss of 309 stores across nine months.
Retail Analysis newsletter