The chairman of Dia is committed to being close to the customers in this crisis and therefore the distributor negotiates daily to limit the increase in food costs
The Dia group started a transformation process three and a half years ago to focus 100% on local businesses. It was headed by Stephan DuCharme (Addis Abeba, Ethiopia, 1954), who simultaneously held the positions of President and CEO, while representing the majority shareholder. Now, once the new retail and franchise model takes off, he will hand over the CEO position to Martín Tolcachir, but will remain non-executive president of the company. A position in which he exercises a global vision and is not so focused on the daily practice of each country, such as Spain, where the price intervention proposed by Minister Yolanda Díaz today draws economic attention and which he does not deal with directly because it is only specific to one of Slide’s markets.
-Where is the group’s business model heading globally?
-We want to have a differentiated ‘retail’ model, focus on what we do and do what we are good at. And that is proximity to us. That is why we accelerate this proximity. We are in quite competitive markets, but no one is doing it for proximity. I think – with modesty – that we are already doing very well. We want to be part of the neighbourhood, in the sense of geographic proximity, but also digital proximity. That’s what we want to do. Do it right, with the realization that we are not going to offer everything to everyone. We are not a supermarket, we are not a hypermarket. We are a neighborhood store with a strong element in the future of omnichannel. That’s Dia’s dream.
-Dia’s business model has changed over the years. What do you think has improved?
-There are several elements. From the beginning, we have been committed to building strong teams. Then change the store, change the assortment, change the franchise model. We want Dia to be your convenience store to make your regular purchase, your fragmented purchase of the basket of the month. Also a change that is now starting to be noticed is the change of the Dia brand, this focus on the quality of the own brand.
-Is the shareholder stability of the company guaranteed?
-I can confirm: we have a main shareholder with a long-standing conviction. He is very committed to the long-term future of Dia, to participating in the building of a new Dia, of a great company.
What does this decentralization of Dia mean, which they attach so much importance to?
-To me, the goal of decentralization is to have people everywhere who feel responsible for what they do. That could be a store. That’s a franchisee who comes in as owner of the store, who’s going to make money if he does it right, so are we, but he’s almost like a local businessman, a neighborhood mini-entrepreneur.
-How is it possible to attract future franchisees to take over a Slide company?
-The previous relationship with franchisees was purely financial in the short term. But we are now thinking long term. We have to make money, us and them, both of us. We first changed this model by investing in them, in the relationship with them, but we also greatly improved the business processes, the product delivery processes to the store, the information for them, etc.
-How is the company dealing with this ongoing rise in food prices?
– Showing your customers that you are close during difficult times makes for a much more long-lasting relationship. In the sense of inflation, we must be well aware that our customers are suffering. It is a daily task that the teams in the four countries have to talk to suppliers to set limits on cost increases until they understand that there are limits within which the customer can suffer. Define a corridor where the business can be managed, but in a much more interactive way, in a way that is much closer to the customer, to the supplier. It is a business challenge, it is a social challenge.
-I don’t know if you can define how it is possible to restore that corridor in a free market economy.
-It should be a win-win for everyone. If not, then it is not a sustainable solution. Working on it, guiding customers, knowing that there will be some increase, but well managed by suppliers, who also understand that they cannot demand a cost increase. This is done by managing the daily dialogue.
-In crises, customers also change their habits. What are they focusing on in the current context?
-Participation in Dia is increasing. The fact that we have completely reinvented our own brand helps us and now we see this part growing, but it is also the question of the price, it is the question of promotions, it is the question of Club Dia. Our loyal customers, when they have the Dia Club, they also have their personalized offers and there is a mix of measures to give to the customer when they arrive at the checkout with their basket. A reasonable basket. But quality is fundamental, we are not inferior to quality.
– Does the Dia group transfer all these cost increases to its products?
-It is very difficult to generalize because it depends a lot on the category, the specific product, the range and even the country and the group. All I can say is that we manage to maintain a good mix of growth (Dia is growing, with acceptable margins), with acceptable pricing for customers and with trusting relationships with suppliers.
-What is the group doing in light of the online shopping boom?
-The future will be omnichannel. Shop and online, both. A customer journey that can start on your iPhone and end in the store. You can start at the store and end up at the Dia club. We want to be a certain disruptor in these issues and that is part of Dia’s future.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
