Martín Tolcachir is the global advisor of Grupo Dia, the iconic supermarket present in practically every neighborhood and town in Spain. After leaving Portugal and sealing the Clarel sales agreement, the distributor's objective is to continue growing in 2024 to be recognized by consumers as the best local store. Catalonia deserves special mention, a territory where the group is preparing new openings.
What is Dia and where is it going?
Dia is a Spanish company that is more than 40 years old and is dedicated to food distribution in Spain, Portugal (outbound), Brazil and Argentina. In the last four years it has redefined its mission and its value proposition. We redefined Dia to be in the proximity distribution and to be an actor in the neighborhood. In essence, being close to families and being a reference in the neighborhoods, a place where the purchases that families need can be completely solved with a very good proposal of fresh products and a complete assortment. We have decided to reinforce quality and make a quick and agile purchasing experience, so that you can go two or three times a week. In the group we have begun to remodel the stores and, in parallel, to offer an online shopping application. In short, we want to be the preferred supermarket in the neighborhood for customers.
Are customers changing consumption habits?
Yes. They make more frequent purchases, with smaller baskets. It is something that we are seeing in all countries in recent years and that was reinforced in 2023. In a context of rising prices, customers manage their budget more.
What horizon do you draw for 2024?
It is going to be a year of growth for us. We have redefined the company, with Spain and Argentina very advanced, and we can move on to the phase of continuing to gain customers, gaining loyalty in those who visit us, that is, making them come more frequently. It is going to be a year in which we will continue to strengthen our brand image.
They have just sold Clarel to the Colombian group Trinity for 42 million to promote the Dia brand. Will more stores open?
Yes. We see opportunities to continue expanding our network. This year we have opened about 35 stores in Spain and 60 in Argentina. Our vocation is to continue finding those places in the neighborhoods where we can bring our proposal closer. We also want to continue expanding our franchisees.
What percentage of its own stores does Dia have and how many are franchised?
In Spain, more than 60% are managed by franchisees.
Does the decision to divest from Portugal imply increasing the commitment to Spain?
It's going to go to the group in general. We are going to see which are the best opportunities to make investments. We also have the objective of continuing to reduce our debt (426 million as of June).
Dia is in a renovation process. What stores will we see?
Stores with a privileged space for fresh products, fruit, vegetables, bakery, with more assortment. Brighter, more modern stores, easy to navigate. We are recognized by our customers in different countries as a place where it is practical to shop.
Has inflation led to a commitment to white label?
Yes, it is a trend that came before and, as there is increasing pressure on family budgets, it is an incentive. Consumers pay attention to quality, and there is great concern about knowing where products come from, ingredients, where they are manufactured. Quality own brands are positioned very well in that area of customers who want a good product, but who want to find ways to optimize their budgets. Ours has made a quality renewal in the last three years that leaves us very well positioned. In Spain we reach 2,000 own brand products.
Is the consumer betting on online shopping?
After the pandemic there is a leveling off in online activity. There was a very strong acceleration during that period, then it stabilized. We have built a new digital platform for online shopping in Spain and we are gaining market share. It is consolidating itself as one more alternative that consumers use to make their purchase. There are no online consumers and physical store consumers; They are customers who go to the store frequently and, at certain times, for reasons of practicality, decide to make a purchase online. We believe that to be a benchmark in food distribution and, in particular, proximity, having a digital solution is going to be key. Not because there is going to be a mass of customers who are going to move online, but because the customer wants to have the options; He wants to be able to do his shopping in the neighborhood on a regular basis and also one week it may be more comfortable for him to make an online purchase or a purchase to be delivered on the same day or planned. We see clients mixing these solutions.
What percentage of sales does online represent?
3% or 3.5% in Spain.
What would you respond to those who accuse distribution of increasing their margins with the lowering of VAT on food?
I think it was quite evident that there was a real impact on prices of this VAT reduction. I think it is an effective measure that helps clients get through the general inflation situation with at least some help.
During the pandemic, the sector proved to be essential. Did you notice a change in customer perception?
Yes, I do believe that there was a reinforcement of this assessment. A large part of our park is owned by franchisees and there I would say that this affinity is reinforced even more. They are entrepreneurs providing a service to neighbors, and this generates an additional affinity.
You have defined Dia as a Spanish company with an international vocation. Do you explore new countries?
Our responsibility is to evaluate options, facing our shareholders. Today I think we have a very clear roadmap in the geographies we are in, but we are always open to evaluating opportunities that may appear to grow (Dia is present in Spain, Argentina and Brazil).
In Europe or America?
There is nothing concrete set today.
Do you consider Spain a safe country to invest in?
Yes, we were born here 40 years ago and we will be here for the next 40. Yes, it is a country in which we see a very good opportunity to do business and, in particular, to grow.
What do you think of the Catalan market? Are you thinking about new openings in it?
The Catalan market is very relevant. We have just over 300 stores and I think it is a region in which we have opportunities to grow with new openings.
