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Grupo Dia closed 2023 with gross sales of 7,649.7 million euros, excluding the sale of stores to Alcampo in Spain, Clarel and Dia’s supermarkets in Portugal, which represents a drop of 19.4%, although with an increase of 3.1% in comparable sales. However, as regards sales in Spain, these have risen by 9.4%, to 4,855.8 million euros, as reported by the company to the National Securities Market Commission (CNMV).
Specifically, the supermarket chain has highlighted the performance in Spain, which continues to gain market share at comparable area and ratifies the strength of the transformation initiated in 2019. The global CEO of Grupo Dia, Martín Tolcachir, acknowledged that Dia has closed a “key year” for the business. “With a very good performance in sales that endorses the trust of our customers and ratifies the success of our strategy focused on proximity,” he said.
“In 2023, our focus was to complete the turnaround of the business in Spain and Argentina, accelerate the growth of our e-commerce and expand our franchise network. The hard work of our team has enabled us to meet our roadmap and close the year with net sales of 5,719 million euros, with the performance of the business in Spain standing out positively, with comparable sales advancing by 10.7% and achieving net sales of 4,046 million in 2023,” he explained.
In Spain, comparable sales, excluding the sale of the 223 Alcampo stores, rose 7.1% in the fourth quarter, gaining market share and linking seven quarters of growth, according to the company, while gross sales reached 1,245.5 million euros, 6.3% more than the previous year, with an increase in comparable sales of 7.1%.
Growth in online sales
The company highlighted the 26% increase in online sales in the last quarter of the year in Spain, compared to the same period in 2022, and increased its contribution to net sales to 4%, driven by the launch of the new e-commerce platform, with the new website and app.
The CEO of Dia España, Ricardo Álvarez, said that the “transformation of Dia in Spain is a reality”. “It has given us the necessary impetus to achieve this great result in sales. We are committed to proximity, to offering the possibility of easier and faster shopping, in-store and online, with products of the highest quality,” he said.
In Argentina, the banner achieved gross sales under the banner of 1,886 million euros, which has allowed it to consolidate its position as the second largest operator in the domestic market, and leader in the city of Buenos Aires, despite the negative macroeconomic context that has weighed down the last quarter of the year.
However, despite the good operating performance, Argentina’s contribution to group sales has been negatively impacted by the devaluation of the exchange rate, which reached 142% in the fourth quarter. Regarding Brazil, the company has pointed out that the business is still strongly affected by the market context, affected by the food deflation that has triggered an increase in competition and in the promotional aggressiveness of the retail sector. Thus, in the fourth quarter, gross sales reached 225 million euros.
Challenges for 2024
The supermarket chain has indicated that by 2024 Spain and Argentina will be the main drivers of growth this year, after 86% of the stores in Spain have already been remodeled and 82% in Argentina.
The supermarket chain has been making progress in the deployment of its value proposition with 31 renovations and 27 openings. In total, during 2023, 523 stores have been remodeled (289 in Spain and 234 in Argentina) and 112 openings (36 in Spain and 76 in Argentina). Thus, at the end of December, the company had 2,880 stores operating under the new model, 73% of the network (excluding Clarel and Dia Portugal stores).
By country, Spain has 2,002 stores operating under the new model, 86% of the network; Argentina has 863, 82% of the network; and Brazil has 15 (3% of the total). This year, the company will work to continue promoting the assortment of Dia brand products and enrich the fresh produce offer, in addition to further developing the digital ecosystem through the implementation of new initiatives within e-commerce and the app, as well as extending its coverage.
Tolcachir emphasized that in a “scenario of uncertainty” the group’s commitment to proximity is confirmed. “It has allowed us to fulfill a historical commitment of Dia: to be an ally of household savings by offering them a complete, high-quality assortment at affordable prices. At the same time, aware of the additional stress that households have experienced, our daily efforts have been aimed at achieving the lowest possible impact of the increase in costs and raw material prices on the price of products,” he said.