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Store Remodeling

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Store remodelling

During 2017, the DIA Group worked on a transversal project, reviewing and adapting a large part of its store network in four of the countries in which it operates.

The company’s store development plans during 2017 has been driven by the implementation of new services aimed at making the customer experience easier, the strong focus on fresh food, the innovation related to the assortment (which is being adapted to sales rather than space in stores), and the use of new technologies, allowing for greater synergies between the offline and online environments.

Some examples of the company’s efforts to adapt and fine-tune its commercial offer to consumers’ changing habits include the start of the remodelling project involving the entire network of DIA Market stores in Spain, the start-up of the new Minipreço Express format in Portugal, and the reopening of the first remodelled Maxi stores in Argentina and Brazil. DIA converted 613 in 2017 (of which 150 in franchised stores), doubling the 307 upgrades completed last year.

This process had a temporary impact on sales volumes, as the stores were closed for several weeks while they were being converted into the new commercial models Accordingly, the company invested EUR302.6m during 2017, both in remodelling and new openings.

In 2018, the company plans to invest EUR320-350m, with a very balanced split between openings and remodelling projects. For the third consecutive year, IT capex is set to grow significantly in 2018.

Stores by country as of 31 December 2017
  2016 2017 Change
  Own Store Franchise Total Own Store Franchise Total  
Spain 2,728 2,147 4,875 2,543 2,170 4,713 -162
Portugal 367 256 623 333 297 630 7
IBERIA 3,095 2,403 5,498 2,876 2,467 5,343 -155
Dia 1,614 2,296 3,910 1,465 2,321 3,786 -124
Clarel 1,126 107 1,233 1,105 146 1,251 18
La Plaza 355 0 355 306 0 306 -49
Argentina 296 576 872 303 627 930 58
Brazil 379 671 1,050 424 691 1,115 65
EMERGING 675 1,247 1,922 727 1,318 2,045 123
TOTAL DIA 3,770 3,650 7,420 3,603 3,785 7,388 -32
 
 
Store selling area by country as of 31 December 2017
(Million square meters)
  2016 2017 Change
Spain 1.8764 1.8078 -3.7%
Portugal 0.2204 0.2249 2.0%
IBERIA 2.0968 2.0327 -3.1%
Dia 1.6199 1.5785 -2.6%
Clarel 0.1997 0.2092 4.8%
El Arbol / La Plaza 0.2772 0.2450 -11.6%
Argentina 0.2387 0.2513 5.3%
Brasil 0.4808 0.4896 1.8%
EMERGING 0.7195 0.7409 3.0%
TOTAL DIA 2.8163 2.7736 -1.5%
 
Capex
  2016 % 2017 % Change Change (ex-FX)
Iberia 225.8 65.4% 165.0 54.5% -26.9% -26.9%
Emerging 119.6 34.6% 137.6 45.5% 15.0% 17.4%
TOTAL Capex 345.4 100% 302.6 100.0% -12.4% -11.5%
 

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