Dia has successfully completed a four-year transformation process and is now the fifth largest distribution chain in Spain, with a 3.7% market share, according to Kantar. The company’s success can be attributed to its focus on renovating its products and updating its packaging to appeal to consumers.
One of the key drivers of Dia’s growth has been its commitment to private label products. The company has significantly increased the weight of its own brand products in the shopping basket to 57%, an 8-point increase over the last four years, well above the sector average. This was achieved by modernizing the quality of over 2,400 products and giving consumers more choice between own brand and manufacturer’s brands.
Ricardo Álvarez, CEO of Dia España, emphasizes the importance of maintaining a balanced assortment that gives equal space to both private label and manufacturer’s brands. Despite ongoing debate between big brands and supermarkets about white label products, Álvarez remains committed to Dia’s value proposition of 50%/50%. This strategy has helped position Dia as a leader in own brand products.
Apart from investing in store renovations, online channels, product assortment, and promotional strategies, Dia has focused on increasing net sales and volume by making significant investments in promotions and offers. Over 500 million euros have been invested in these initiatives, resulting in a 6.2% increase in net sales and volume in the first quarter of this year alone.
Looking ahead, despite potential challenges such as rising VAT on basic foodstuffs, Dia remains optimistic about containing inflation and maintaining positive momentum. The CEO has called for continued support for households through measures that balance consumer interests with economic realities.
