Colombia: D1, a Decade of Expansion and Leadership in Colombian Retail
- DRC Discount Retail Consulting GmbH
- 31 minutes ago
- 3 min read
Discount Retail Chain Tiendas D1's period between 2015 and 2024 marks one of the most transcendental stages in its short history, consolidating its "hard discount" business model and catapulting it to the leadership of the retail market in Colombia. This decade of exponential growth and transformation is understood through significant changes in its shareholding structure and a series of milestones that redefined the consumer landscape in the country.
Shareholder Reconfiguration: The Entry of a Strategic Giant
The turning point for D1 in this decade came in 2015. Although the discount store model had been founded in 2009 by Chilean businessmen Michel Olmi and Luis Abudei, German Dieter Brandes the arrival of a new actor marked the beginning of a new era. In 2011, Valorem, the holding company of Grupo Santodomingo, had acquired a 20% minority stake in Koba International Group, the company behind D1. However, in 2015, Valorem took full control of the company by purchasing 35.25% of the shares from the founders, raising its stake to 60.25%.
This move was more than just a financial transaction. Valorem's acquisition of the majority stake injected a robust financial structure and strategic backing that enabled D1 to accelerate its expansion plan in an unprecedented manner. The company's shareholding composition for 2024 was established with Valorem as the main shareholder (60.25%), along with the Ihag Fund of Switzerland (20.75%) and the CPP fund of Canada (19%).
Milestones That Marked the Decade
D1's strategy under the new management focused on operational efficiency, aggressive expansion, and loyalty to its value proposition: quality products at low prices. The following milestones demonstrate the effectiveness of this vision:
Exponential Expansion of the Store Network: From 2015 to 2024, the number of D1 stores multiplied impressively. In 2015, D1 had around 500 stores, and by the end of 2024, it exceeded the figure of 2,500 stores. This expansion was not only limited to large cities, but reached more than 500 municipalities and 31 departments, making the brand a national phenomenon.
Sales Leadership and Outperforming Historical Competitors: D1's bold strategy allowed it to quickly climb positions in the market. In 2015, Almacenes Éxito, the traditional supermarket market leader in Colombian retail, sold almost nine times more than D1. However, this gap was progressively closed. By 2024, a historic milestone was reached when D1 reported operating revenues of over 21 billion pesos, surpassing Grupo Éxito in turnover for the first time and consolidating itself as the main retailer in Colombia.
Massive Job Creation: The company's growth translated into significant formal job creation. By the end of 2024, D1 positioned itself as one of the country's top employers, with more than 24,000 employees. It is noteworthy that, for that year, 95% of its employees had an indefinite term contract, and more than 54% of the workforce was made up of women.
Penetration in Colombian Households: D1's low-price model facilitated access to the family basket for millions of Colombians. Throughout this decade, D1's penetration in Colombian households reached more than 95%, underscoring the company's social impact in improving families' standard of living and purchasing power.
Development of Own Private Label Brands and Local Suppliers: One of the keys to D1's success is its focus on private labels. The company works with more than 500 local suppliers, and more than 90% of its products come from the national industry. This strategy not only reduces costs, but has also boosted the development of manufacturing and agriculture in the country, strengthening the local economy.
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