Piman Khrutmuang's Images, Billion Photos, Noppol Mahawanjam, en.e-noticies.cat Neither Mercadona nor Lidl: This Popular Supermarket Wants to Open Up to 300 Stores Now
The company has presented its new strategic plan and has made it clear that it intends to get closer to its customers
The rise of supermarkets seems to have no end. The most popular ones still haven't won it all, and they have more strategies in mind to achieve greater success. An example is a well-known Spanish store brand that has announced its new expansion plan.
After four years of financial difficulties and a deep restructuring process, Grupo Dia has announced its new strategic plan for the 2025-2029 period. The company has managed to stabilize its economy after selling assets, divesting in Clarel, and refinancing its debt. For all these reasons, it is now launching an offensive with a growth plan in Spain.
Dia will allocate between 750M and 900M euros in Spain to expand its market presence and open more than 300 new stores. This plan, presented at its Capital Market Day, includes an annual investment of between 150M and 180M euros until 2029. With this, Dia expects to generate around 3,000 jobs in its network of stores and franchises.
Grupo Dia's expansion strategy will focus on the franchise model and strategic locations aligned with its proximity philosophy and economic potential. For this, an investment of approximately 50M euros annually is planned. With this expansion of its sales area, the company expects to achieve an average annual increase in gross sales under its brand of between 4% and 6%.
More Objectives of Dia's Strategy Change
Surpassing market growth and gaining market share. Additionally, Dia seeks to raise its margin on adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) to an estimated range of between 7.5% and 8%. The plan also includes a logistics optimization program with the transformation of six key distribution centers in Spain.
This renewal will include technological improvements in loading and distribution processes to reduce distances, improve route efficiency, and strengthen the supply capacity of its commercial network. In this regard, Grupo Dia will allocate 125M euros until 2029 to modernize its refrigeration systems. The chairman of the board, Benjamin Babcock, has emphasized that this plan reflects confidence in the value proposition the company has built over the past five years.
"It's a plan focused on generating value and positions Dia as a company capable of offering value for shareholders," he stated. Grupo Dia also doesn't rule out making acquisitions to strengthen its business in Spain and continue exploring new business lines that align with its strategy. This approach would allow it to reinforce its value proposition and consolidate its growth in the national market.
Dia's Ambitious Plan
With this ambitious plan, Grupo Dia seeks to regain lost ground after years of crisis and become a benchmark in the food distribution sector in Spain. All this by betting on a model of proximity, logistical efficiency, and sustained profitability. Undoubtedly, a safe bet that they have already thoroughly studied.
After announcing these developments, it is likely that the competition will step up. It's time to renew and look beyond what already works. Dia knows a lot about that.
More posts: