Thursday, December 1

Dia acknowledges that it is not on his agenda to make a shopping basket at capped prices

The shopping basket today is the most expensive in the last 30 years. In October, the rise in food prices exceeded 15% and distributors do not set a date for a change in trend. “It is difficult to set a date for the drop in food prices. I wouldn’t dare to predict”, says Martín Tolcachir, global CEO of the Dia group during the presentation of the new store model.

The agreement of the basket of the purchase to reduced prices follows without materializing with the inflation of the foods skyrocketed

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“Yes, to say that in our sector the level of competitiveness is so high, I speak for the sector in general, there is a great effort to keep prices as low as possible in a tense context like the current one”, indicates the person in charge of the chain of supermarkets since last August.

However, it is not in Dia’s plans to put a shopping basket on sale at affordable prices, as urged by the second vice president and Minister of Labor, Yolanda Díaz, in an interview in “It is not on our agenda to make a shopping basket at capped prices,” Tolcachir has acknowledged. “Our focus on how to promote access to food and quality food is low prices, permanently, promotions and actions of the Dia club.”

In this sense, he has deepened that “we are in a clearly tense situation, there is a significant level of inflation. These levels of inflation that we see in all countries are having an impact on the purchasing power of consumers. Our role is to fight every day to keep prices as low as possible. In a super competitive environment in all countries and we make great efforts to keep prices as low as possible”.

Own brand, 52% of its sales

Dia, whose main shareholder is Letterone – the investment firm controlled by the Russian magnate Mikhail Fridman – acknowledges that he perceives a change in consumer buying habits, with smaller and more frequent purchases and more consumption of ‘brands’. white’.

Currently, these products from his banner are more than half of his sales. “The own brand depends on the countries. In Spain it is 52% of sales, it is an important growth, because it grows 5 points in terms of weight”, compared to the previous year. “This is giving the client the option to choose. We are not setting ourselves an objective, it is the customer who is making that movement”, argued the CEO of the supermarket group. A few days ago Carrefour assured that it pursues its own brand to be 40% of its sales, compared to the current 33%.

A growth of the own brand that, says the CEO of Dia, “is a trend not only in Spain, it is global. It is a ‘driver’ in all countries, because they are quality products at affordable prices”.

This growth of the own brand occurs in parallel to the transformation process in which the group is immersed, which in 2018 experienced an earthquake with the replacement of its entire leadership and a review of its economic data. “In recent years we have worked to redirect the company. A few years ago Dia went through difficult times. The important thing was to define where we wanted to go. Today is a very different situation.” he has pointed.

He assures that he seeks to return to being a neighborhood supermarket chain, with fewer stores. The group, which has around 2,600 stores in Spain – where it also has the Clarel perfumery chain, where it is conducting pilot tests of new store models – has 80% of its park of establishments transformed.

If you add the other markets where it operates (Portugal, Brazil and Argentina), the transformation to the new model is 50%. Stores where it insures, sales grow by 15% compared to those that have not been renewed. However, Tolcachir did not want to anticipate when the group expects to leave behind the losses. In 2021, Dia lost more than 257 million euros.

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