DIA: new initiatives to drive growth

Date : 02 March 2016

Spain-based DIA has implemented new strategies to drive sales growth in Spain and Portugal.

Extends reach of online store in Spain

DIA has expanded the reach of its online store, adding a number of cities to the service. Palma de Mallorca was the first to benefit from the extension, with this followed by Cadiz, Cordoba and Sevilla. The service has already been launched in Madrid, Barcelona and Malaga and offers shoppers more than 4,000 products, some of which are not available in its stores.

Although ecommerce in Spain remains a very small part of the grocery market, the channel is attracting more focus from retailers, with Carrefour adding Drives, for example. DIA and others are seeing the channel as a way to differentiate from other retailers and in an attempt to build a loyal shopper base before any potential move by Amazon to expand its product range in the country.

Opens new concept Minipreço store in Portugal…

DIA has opened a new store format under the ‘Minipreço Family’ banner. The retailer said the concept was likely to be focused on sites outside the country’s largest cities, provide suitable space for car parking and room to operate a store that combines elements of its Minipreço and Clarel banners. The stores are likely to measure about 800 sq. m and carry about 20% more products than a standard store, include fresh counters and new areas that provide food-to-go options. The health and beauty category will benefit from an enlarged focus and benefit from the retailer’s Bonté private label brand.

…which should help it try to offset contraction in sales in the country

Following on from its annual results statement it was reported that DIA has suffered a 6% contraction in sales at its operations in Portugal, with these falling to €823 million in 2015. The retailer ended the year with 621 stores, down from 634 at the end of 2014, which accounted for a slice of the contraction in sales.

The retailer’s corporate director, Amando Sánchez, admitted that its performance in Portugal was disappointing. However, Sánchez noted that DIA had put in place new initiatives recently, which has seen it focus on two formats, Minipreço Market and Minipreço Family, adapt its communication strategy and pricing policy, and that these had driven an encouraging performance thus far, with sales up by 10% for Minipreço Market.