DIA: 2020 results and future strategies

Date : 07 April 2021

Lucy Bellotti

Retail Analyst

DIA said as part of its 2020 FY results its consolidated sales increased by 0.2% to €6,882m, compared to 2019.

DIA continues to make improvements

DIA’s sales increased 0.2%, despite a decrease in its store network by 6.9%, across Spain, Portugal, Brazil, and Argentina. The group achieved the sales increase despite the headwinds of tourism levels in Spain and Portugal being low due to COVID-19 and the devaluations of the Brazilian real and the Argentine peso.

DIA’s like-for-like (LFL) sales rose 7.6%, which the group claimed was due to it improvements initiatives, which has led to an increase of 24.6% in its average basket size.

DIA claims it plans to ‘continue to focus on improving its position as a modern local supplier, through innovative solutions in the commercial and online sales areas’.

Sales performance by market

In Spain, the retailer generated sales of €4,508m in 2020, growth of 7.9% compared to 2019. The group has increased sales despite a store network that is 7.5% smaller and the decrease in tourism.

In Portugal, sales increased by 6.1% to €630m, despite the decrease of tourism in the major cities. The group claims the growth was driven by its focus on supplying fresh products and local transformation.

In Argentina, DIA saw sales fall 11.3% to €813.8m. DIA said in local currency terms it enjoyed growth of 35.9%, due to the improvement in operating results.  

In Brazil, the retailer recorded sales of €929.8m, a decrease of 21.3% versus 2019. DIA saw sales rose 4.5% in local currency terms, despite the 11.5% reduction in the number of stores it operated at the end of the financial year.

DIA’s strategic roadmap

Stephan DuCharme, DIA’s executive president, highlighted key strategic initiatives expected in 2021 and beyond including:

  • Focusing on its new franchise model, improving commercial offers, and committing to operational excellence
  • Concentrating on fresh products and its private brand that combines quality, price and appealing packaging
  • Focus relentlessly on positioning the group as the neighbourhood store, with innovative commercial and online channel solutions
  • DIA will continue to reinforce its online channel, following on from its transformation of 14 supermarkets to dark stores in Spain, currently only available in Spain although a dark store is expected to open in Portugal
 

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