Regeneration, perception of the future, knowledge of the market and the distribution of roles, among many others. These are some of the concepts that define the new image of Día. The supermarket chain that was born back in 1979 in Madrid’s Calle de Valderrodrigo, with the innovative concept of the discount format, has made its way to float its brand based on perception and leadership.
However, in order to understand this reformulation of the brand and this new era, it is worth remembering that not every past time was better. To this end, we go back to 2019, a time when the firm created by Carlos Osoro did not go through its best times.
The supermarket chain ended up laying off more than 2,000 workers after making a loss a year earlier of 352 million euros. True, sales declined alarmingly worldwide by 14.9%, thus going from 11.04 billion in 2017 to 9.39 billion in 2018; and at the Spanish level of 2.4%.
The regeneration of a brand
Now the supermarket firm seems to be enjoying a new golden age based on effort and work, and of course, good management and good business practices, and as proof of this are the numbers. Taking the right actions and measures at the right time has paid off.
As a result, the food, hygiene and cleaning products chain is now the fourth largest market share, with a 4.8% market share. It is surpassed only by Mercadona with 25.2%, Carrefour with 9.6% and Lidl with 6.2%.
The company, which was acquired in 2019 by the Russian Mikhail Fridman, has experienced a cautious growth based on decisive decisions. The crisis the company was going through made the maximum shareholder decide to reformulate its strategy and give it what is known as a facelift.
Separation of positions and appointment of a new CEO
The first action taken for the turnaround was the separation of the positions of CEO and President, as well as the appointment of a new CEO. Since last summer, Stephan DuCharme stepped down as CEO to become a proprietary director and non-executive chairman, and Martín Tolcachir moved from being CEO of Día Argentina to become the brand’s new CEO.
Tolcachir’s appointment has undoubtedly been a decision that has led Día to climb up the supermarket rankings. The strategy of accelerating towards global growth seems to have paid off.
The new CEO has focused his action plan on offering a new value proposition well differentiated from other supermarkets, including a new store concept and model, a good selection of professionals, the treatment of its private label and the review of its products or the fight against inflation.
In line with this, the new CEO was clear that the selection of professionals had to be firm and rigorous, with a staff that came from the business and rowed in favor. The best and clearest example was the appointment in 2020 of Ricardo Álvarez as CEO Spain and he has revolutionized the firm.
The good work of Día’s CEO
Ricardo Álvarez’s work is unquestionable. He has managed to create a quality brand with its own stamp and personality. Álvarez has led the transformation process of the brand and the company in Spain, promoting a model based on the renovation of the stores and the quality of the brand.
The CEO stated that he intended to change 100% of Día’s image in the market, admitting that it had become outdated and did not meet the needs of Spanish consumers. Ricardo Álvarez’s work has focused on recovering and fixing the company and making it profitable again.
Becoming the reference supermarket among Spaniards is a process that Álvarez has led, for which he has developed a strategy based on three pillars: the renewed store concept, the higher quality of its own-brand products and offering a much more modern and functional shopping experience.
A new store model
The brand’s success is now being driven by the propulsion and development of new stores. Sales have been quantified in an increase of 10% and in a margin of about two years the corporation has been transforming the 1,000 points of sale they have.
The hallmark of this reform has been to differentiate itself from the larger stores. To this end, they have transformed everything from their facades with the color to the logo. The ultimate goal is to have 2,200 supermarkets transformed by the end of the year, as well as to open new points of sale.
Another point that the CEO has worked on is to always offer the highest quality, giving the customer a free choice of products, including its private label.
The redesign of these is a reality, having already transformed nearly 2,000 products, and always based on the quality-price concept. The treatment of its private label is praiseworthy. The company has added the name of its supermarket to all its products, giving strength to the power of marketing.
The company is aware of the importance of prices for consumers, who are now avoiding impulse purchases and increasingly frequenting private labels. Día is now working with new suppliers, always seeking proximity and good prices.
This has been another pillar worked on by Día’s CEO, to achieve a functional and modern shopping experience. This new experience includes prices and, above all, e-commerce. Día has promoted online sales by extending it to coastal areas and offering new pick-up and delivery services.
Of course we cannot deny that Dia and the work of its CEO is the most obvious example that a timely regeneration is always synonymous with success. Good work and good decisions have catapulted the company to supermarket leadership.