Dia Group in Spain
Highlights on the method used by the Iberian chain to address the current market.
Distribuidora Internacional de Alimentación S.A., more commonly known in Spain by the acronym Dia, is a discount chain founded in 1979 (the year the first store opened in Madrid) and holds a 3.7% market share in the country, achieved primarily through sales of the ‘private label’ range, largely made locally by co-packers and trusted suppliers.
This retailer has developed thanks to the strong rise of the discount channel in Europe over the last twenty years and has been trying to firmly establish the cornerstones of its commercial health through a planned, methodical and forward-looking strategy.
Figures and loyalty
Between Spain and Argentina, more than 3 300 stores operate in the field, with a shared vision of fully satisfying ‘convenience’ by providing easy, fast, high quality shopping experiences at low prices, with the possibility of enjoying them both physically and digitally. The company employs approximately 17 000 people across the various stores and logistics platforms. Its headquarters are in Las Rozas, in the centre of Spain, plus another 17 000 in the franchising network (2 270 sales units). Together, in 2024, they achieved a turnover of approximately 7 billion euros, with 65% of transactions carried out using the ‘Club Dia’ options.
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The solid cornerstone of its modern institutional loyalty campaign is based on specific components such as:…
- Personalised coupons (related to purchasing habits or specific products by the user)
- Electronic wallet (which can carry ‘virtual money’ obtained through promotions)
- Participation in games on the app
- Collaborations with partner companies
- Exclusive offers promoted directly by the app and promotional benefits reserved for specific customer categories.
The mobile application also allows the brand to carry the loyalty card and easily consult digital flyers. It’s, in fact, a practical tool for fully exploiting every advantageous option available through membership in the Club Dia loyalty system. The fixed customer base, systematically served and retained, now reaches 10 million people.
The five-year strategy
The primary objective declared in the 2025–29 strategic plan remains
- to generate value through healthy and profitable growth
- to be strengthened in the long term thanks to the reliable network of physical stores and online references, wherever the Store Brand operates.
It has been announced that 300 stores will be opened in Spain by 2029, with extensive use of the franchising formula. The new stores are expected to add at least 1 million customers to the user base, for an estimated compound annual growth rate (on gross sales) of 4% to 6% and a fore cast margin of between 7.5% and 8%. This represents an investment costing between 150 and 180 million euros, which will also benefit 2 400 newly hired workers. 2024 had already been a busy year for Dia, dedicated to streamlining and consolidating its business in Spain and Argentina, along with successfully completed internal refinancing. The four cornerstones identified for the operational strategy are: delighting customers, growing profits, strengthening the fundamentals of success and sharing Dia’s story with numerous stakeholders. Martín Tolcachir, Global CEO of the Dia Group, believes that precisely through the implementation of these four pillars, the five-year strategic plan for the transition to the next level will be achieved. He specified…
“We will continue to grow, little by little, together with our team in stores and at headquarters, with franchisees, suppliers, stakeholders and all investors, to ultimately be the best daily point of reference within the territories we serve.“
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These words and intentions are as laudable as they are challenging, formally solemn and easy to declare, but… in fact, how can they truly excite customers? And, above all, how does Distribuidora Internacional de Alimentación intend to do it?
The axes on which the company has announced it will move, in this area, are…
- Hyper-personalisation of offers, maximising the mechanisms used by Club Dia to fully understand customers, their characteristics and their various purchasing habits.
- Gamification, through the implementation of the game options allowed by Club Dia itself, to increase levels of engagement, active participation and loyalty with initiatives borrowed from games and video games.
- Balanced and well-structured assortment across the spaces, guaranteeing customer freedom of choice (with 2 400 renewed products).
- Quality of the products offered in the fresh produce departments.
- Substantial and visible infrastructural improvements within the network stores.
- Omnichannel.
The key areas relating to growth in profit generation will be…
- Optimisation of logistics flows.
- New openings driven by the franchising formula, in ideal locations in terms of commercial performance and real community service.
- Monetisation of operations, through activities implemented in the digital domains.
The key areas for the point relating to ‘strengthening winning fundamentals’ will focus on…
- Proximity.
- Enrichment of corporate culture and its sharing.
- Deepening management skills.
- Daily action focused on approaches that place the customer as the absolute protagonist.
Finally, this retailer will raise awareness among all mass distribution players – consumers, suppliers, collaborators, direct or indirect stakeholders related to the company, and any entities involved in various capacities of Dia’s nature, identity, vision, history and specific initiatives.
