DIA holds its first Investors’ Day with a focus on Latin America and on proximity

October 31, 2012

Today, DIA explained to the market its growth plans and new store formats.

It has raised its growth forecasts.

Distribuidora Internacional de Alimentación brought together its main directors to explain to the financial community the company’s progress and the projects in which it is involved.

CEO Ricardo Currás opened the event, stating that 2013 would be a decisive year for DIA. During that year, the proximity formats are to be strengthened. “The most important challenge for DIA is to be the best in terms of price and proximity”.

Amando Sánchez Falcón, chief corporate officer of DIA, highlighted the company’s successful track record, placing particular emphasis on how the company is prepared to accelerate its growth rate. Proof of this is the announcement of the opening for 2013 of the new region in Brazil, Minas Gerais. Sales, EBITDA and EBIT growth has been raised in the company’s financial plan.

Diego Cavestany, operations executive director of DIA Spain, announced the launch of DIA Fresh as a new proximity model to develop in the future. In the last quarter of the year, 20 openings are planned in the Spanish territory. Within the proximity concept, he also explained the model of the recently acquired German chain, Schlecker, which, after approval by the competition authorities, will become part of DIA. Cavestany highlighted the company’s potential to keep growing in Spain.

Juan Cubillo, commercial director of DIA, was responsible for showing the financial community the chain’s excellent price positioning. Of the seven countries in which DIA is present, four of them (Spain, Portugal, Argentina and Brazil) provide the company with absolute leadership in terms of price image.

Luis Martínez, commercial director of DIA Spain, highlighted the importance of the company’s two main tools in its commercial strategy: the Club Dia card, which has 28.4m subscribers in five countries, and which will soon be launched in China and Brazil, and the discount coupons, which represent an essential tool in DIA’s price image, which also offer considerable support in the promotion of all brands.

Julián Villena, supply chain director of DIA, explained how, amid an adverse scenario for innovation, DIA had been able to innovate and become more efficient, thus reducing costs in the daily management of logistics. Proof of this is that between 2007 and 2012, logistics costs compared to net sales have fallen by 10.6%.

Antonio Coto, South America and partnership director of DIA, highlighted the importance of the franchise as one of the pillars of DIA’s business. The franchise is the best way to manage proximity. This management model is gradually integrated, meaning that this is a long journey. The franchise is one of DIA’s competitive advantages, as although it seems simple, this model is very difficult to copy, and it is undoubtedly the closest and most efficient model for clients.

Lastly, Miguel Guinea, commercial director of DIA France, showed the figures relating to the DIA brand’s performance, where it is worth highlighting the weight of the brand in countries such as Brazil or Turkey (35%) or Argentina (39%), where the concept of private label brands is hardly developed. The DIA brand includes a range of 8,000 SKUs, and is the perfect complement for the proximity commercial offer.