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Spain: Repositioning of Discounter DIA is gaining speed and results

Discount Retail Chain DIA Group (listed and owned by LetterOne) achieved net sales of 6,882 million euros (US$8.3Billion) last year, which is practically the same as the 2019 result (6,870 million euros, US$8.3Billion). This emerges from a press release with the preliminary results for 2020. Like-for-like sales (on a like-for-like basis), on the other hand, saw an increase of 7.6%.

The owner of the supermarket chain Minipreço with stores in Spain, Portugal, Brazil and Argentina generated net sales of 1,688 million euros (US$2.0Billion) in the fourth quarter of 2020. This corresponds to a decrease of 5.6% compared to the previous year, a growth of 6.9% in like-for-like sales.

“The positive behavior of comparable sales in the fourth quarter, which continues the trend already observed in the course of 2020, is due to the effects of continuous operational improvements as well as an improved range of fresh products that we are making available to our customers at the moment where they need it most”, quoted Stephan DuCharme, Executive President of Grupo Dia, in the statement.

"Spain and Portugal have maintained a positive sales trend, while the strategic rationalization of our branch network with 7% fewer branches per year and the currency effect in Brazil and Argentina influenced the overall performance of the group sales." He explained.

In Portugal, the international sales group of Spanish origin recorded net sales of 158 million euros (US$ 192Million) in the last three months of the year, a growth of 7.6% compared to the previous year and an increase in comparable sales of 5.2%. In Spain, the group achieved net sales of 1,143 million euros (US$1.4Billion) in the fourth quarter of 2020, an increase of 9% compared to the previous year and a growth of 10% in comparable sales.

Net sales in the Brazilian market amounted to 213 million euros (US$259Million) in the fourth quarter of 2020, a decrease of 33% compared to the previous year and a growth of like-for-like sales of 6.2%. In Argentina, sales finally came to 174 million euros (US$211Million), a decrease of 36% compared to the previous year and a comparable turnover of 1.6%.

Looking ahead, the executive president says the group will intensify efforts to improve the franchise model in developing online capabilities by expanding its private label brand offering and introducing "an interesting new discount business model."

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