DIA strengthens strategic focus

Lucy Bellotti
Retail Analyst
@RetailAnalysis

Date : 02 October 2020

As DIA and Amazon expand the coverage of the Prime Now service to more cities and the retailer sets out its increasing focus on franchising, we look at how it is investing in key areas of its business.

DIA and Amazon expand Prime Now coverage

As part of their agreement, DIA and Amazon have, through the former’s La Plaza de DIA banner, made the service available in five cities. Now available in Malaga, Prime Now is available to shoppers in that city and four others, Madrid, Barcelona, Valencia, and Seville. The service enables shoppers to buy through the Prime Now site from a range of goods, including fresh, chilled and ambient categories, amongst others, from La Plaza de DIA. Orders are picked in store, with the final delivery made by Amazon. Shoppers can choose from a range of delivery options, including same-day delivery, which incurs no charge on orders over €40.

DIA to refocus on franchising

In an interview reported by infoRETAIL, DIA’s director of logistics and franchising, Iván Martín Martín, has said franchising ‘will be the basis for the company’s growth’. Franchising has not been a focus in the recent months as the retailer has focused on turning itself around and putting in place the foundations for future growth.

The plan is part of the retailer’s new franchise management model, DIA Franchise 2020, which sets out a plan to add 500 stores in the next three years. The plan aims to enable franchisees to double their profitability, to 3% by helping them implement the new model, which Martín said is ‘very customer-oriented, [supporting] sales and partner profitability’.

The aim is to open 100 new stores by the end of 2020. Martín said the new stores could use an updated design and look and feel. He said there were several pilot projects in operation, with tests for different store designs.

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