Carrefour tests Dia Market
In Spain, Carrefour's discount division Dia is testing a new discount concept under the Dia Market banner. Planet Retail visited one of the four pilot stores which are all located in the Spanish capital Madrid. The store opened in May this year.
Dia leads the way
Until now, it has operated two different discount concepts. The first, trading as Dia, is a neighbourhood hard discount formula selling a limited assortment (850 lines) of basic everyday products from an average store size of around 260 square metres. The second, Maxi Dia, is a larger version of a regular Dia featuring an extended non-food offer and with a sales area of between 1,000 and 2,000 square metres.
A new urban discount store concept
With the launch of the Dia Market discount concept, Carrefour is thought to be targeting urban premises with surfaces below 500 square metres (the four pilot stores have a sales area ranging from 347 to 474 square metres). One of the main characteristics of the Dia Market concept is its convenience offer which includes fresh products (40% of the assortment), ready meals, impulse products, grocery staples and magazines (not daily newspapers).
The concept clearly targets the top-up shopping sector, while at the same time offering a good selection of products at Dia prices. Dia Market’s extended opening hours, from 9.30am to 9.30pm, are also intended to cater for shoppers in urban locations and time-poor workers returning home.
Also, unlike the cheap-looking environment of a typical Dia discount store, Dia Market puts much emphasis on an appealing shopping atmosphere. Rather than competing simply on price with German discounters Lidl and Aldi, Carrefour seems to be looking to tempt shoppers through an improved store environment and product range.
A locally adapted multi-format approach
The launch of a third discount format forms part of Carrefour's strategy to reinforce its presence in key markets (in 2006 Spain accounted for 14% of Carrefour’s total retail banner sales) through a locally adapted multi-format approach. "The worldwide strategy of Carrefour is to try to give customers what they want. The location they want, the lines they want, the format they want and the prices they want,” CEO José Luis Duran said in mid-2006. The group's ability to convert its stores and launch new formats to meet specific local situations will continue to be crucial in 2007.
Dia Market not unique
During the year Carrefour is expected to expand its Dia Market discount concept beyond Spain. Greek management is monitoring the project in Spain and the first Greek Dia store should soon be converted into Dia Market. Carrefour has already announced that if the project turns out to be a success, the retailer will transform almost all its small stores into Dia Markets, the goal being to apply it throughout the country.
The move also represents a growing trend amongst the hard discounters of creating new, upmarket store concepts that increasingly value convenience and freshness over price. Aldi in the UK, for example, opened its first city centre store in Manchester at the end of last year. The new outlet has a strong focus on food-to-go and convenience products. It is clear that as competition within the discount sector intensifies, the leading players are realising they have to be flexible to search out new avenues for growth.
Source : http://www.planetretail.net/Default.aspx?SessionID=175719370
Dia leads the way
Until now, it has operated two different discount concepts. The first, trading as Dia, is a neighbourhood hard discount formula selling a limited assortment (850 lines) of basic everyday products from an average store size of around 260 square metres. The second, Maxi Dia, is a larger version of a regular Dia featuring an extended non-food offer and with a sales area of between 1,000 and 2,000 square metres.
A new urban discount store concept
With the launch of the Dia Market discount concept, Carrefour is thought to be targeting urban premises with surfaces below 500 square metres (the four pilot stores have a sales area ranging from 347 to 474 square metres). One of the main characteristics of the Dia Market concept is its convenience offer which includes fresh products (40% of the assortment), ready meals, impulse products, grocery staples and magazines (not daily newspapers).
The concept clearly targets the top-up shopping sector, while at the same time offering a good selection of products at Dia prices. Dia Market’s extended opening hours, from 9.30am to 9.30pm, are also intended to cater for shoppers in urban locations and time-poor workers returning home.
Also, unlike the cheap-looking environment of a typical Dia discount store, Dia Market puts much emphasis on an appealing shopping atmosphere. Rather than competing simply on price with German discounters Lidl and Aldi, Carrefour seems to be looking to tempt shoppers through an improved store environment and product range.
A locally adapted multi-format approach
The launch of a third discount format forms part of Carrefour's strategy to reinforce its presence in key markets (in 2006 Spain accounted for 14% of Carrefour’s total retail banner sales) through a locally adapted multi-format approach. "The worldwide strategy of Carrefour is to try to give customers what they want. The location they want, the lines they want, the format they want and the prices they want,” CEO José Luis Duran said in mid-2006. The group's ability to convert its stores and launch new formats to meet specific local situations will continue to be crucial in 2007.
Dia Market not unique
During the year Carrefour is expected to expand its Dia Market discount concept beyond Spain. Greek management is monitoring the project in Spain and the first Greek Dia store should soon be converted into Dia Market. Carrefour has already announced that if the project turns out to be a success, the retailer will transform almost all its small stores into Dia Markets, the goal being to apply it throughout the country.
The move also represents a growing trend amongst the hard discounters of creating new, upmarket store concepts that increasingly value convenience and freshness over price. Aldi in the UK, for example, opened its first city centre store in Manchester at the end of last year. The new outlet has a strong focus on food-to-go and convenience products. It is clear that as competition within the discount sector intensifies, the leading players are realising they have to be flexible to search out new avenues for growth.
Source : http://www.planetretail.net/Default.aspx?SessionID=175719370
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