DIA increased sales by 8.5% through June and reduced its stores in Spain by 3.9%

Inside the DIA Market (DIAweb Photo)

DIA Group’s first half net sales increased by 8.5% compared to the same period in 2021, reaching 3,465 million euros, a period in which in Spain the company reduced by 3.9 % the number of stores and obtained a turnover of 2,095.6 million (+0.3%).

This stems from the report sent by the company to the National Securities Market Commission (CNMV) in which it details that the group closed the first half with 5,733 stores in the four markets in which it operates (Spain, Portugal, Argentina and Brazil), 4.3% less than in the same period of 2021.

In Spain, the group slightly increased its sales despite the fact that the store network was reduced by 3.9%; while in Portugal, turnover fell by 4.5% and the number of stores by 1%.

In the first six months of the year, net sales in Argentina, driven by higher inflation than currency devaluation, rose 13.6%, a market in which the chain also increased its number of stores with 3.7% more. stores.

In Brazil, net sales increased by 13.9% despite the reduction in the number of stores by 18.2%, in a period when, according to the company, “it benefited from the revaluation of the Brazilian real of 17.5 %”.

DIA Group also provided second quarter Like-for-Like comparable sales data, which shows positive results in all markets.

In this case, the recovery stands out compared to the first quarter in the markets of the Iberian Peninsula, (+6.6% in the case of Spain and +3.2% in the case of Portugal), although the The evolution continues to be more positive in Brazil (+9.5%) and Argentina (+4.5%).

He also detailed that the net sales of franchise stores continue to gain weight and already reach 35.6% of the total for the first half, a figure which in the first half of 2021 stood at 32.2%.

At the end of June, the banner had 1,775 stores operating under the new store model and representing 46% of the local network.

As detailed by the company, the “complex economic scenario”, marked by inflation and the rising cost of raw materials, fuel and energy, is already showing changes in customer behavior, which have increased the frequency visits to stores, but make purchases of lesser amounts.

As we can see, there was a 5.7% increase in the number of tickets during the first half of the year, compared to the 2.9% drop in the amount of the average basket, “a habitual behavior in the stadiums of an uncertainty like the one we are going through”.

In addition, between January and June, the weight of the own brand DIA in the basket increased to 51.7% in Spain, compared to 47.7% in the same period of the previous year.

The executive chairman, Stephan Ducharme, indicated in the note sent to the CNMV that “the positive evolution of the sale during the second quarter makes it possible to visualize the consolidation of a change initiated in 2019”.

He warned that “there remain challenges that affect not only DIA but the industry”, although they may be “an opportunity” for its proximity raison d’être and “ambition to lead the store of proximity is more relevant than ever”.

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