From Rags to Riches: Dia’s Transformation in Spain and Its Commitment to Value for Customers

After four years of intense work in Spain, Dia has successfully completed its transformation process. With a market share of 3.7%, the fifth largest in the country according to Kantar, the company has achieved significant growth by focusing on increasing profits and the average sale per store by 50%. This success can be attributed to the renovation of their premises and a complete facelift of their own brand products.

In a competitive landscape with inflation and conflict between manufacturers and distributors, Dia has significantly increased the presence of private label products in the shopping basket to 57%, well above the sector average. This was achieved through a complete overhaul of their product assortment, including modernizing packaging and improving quality across more than 2,400 items. CEO of Dia España, Ricardo Álvarez, highlights the importance of giving consumers the choice between own brand and manufacturer’s brand, with both occupying equal shelf space.

Dia remains committed to providing a balanced assortment for customers despite industry debate over unfair competition and discrimination against manufacturers. The company’s strategy of maintaining a 50%/50% split between own brand and manufacturer’s brand is a key part of their value proposition. Through investments in store renovations, online channels, and promotional strategies, Dia has managed to improve net sales and volume while avoiding inflation.

Looking ahead, Dia is prepared for potential price increases due to government policies but remains focused on providing value and savings for their customers. With a strong commitment to household savings and continued focus on innovation and customer choice, Dia’s success in the Spanish market is set to continue.