The management board of Dino Polska SA, one of the fastest-growing chains of proximity supermarkets in Poland, anticipates further growth in the retail food market, including the proximity segment, in 2017. In recent years the group has generated double-digital rates of revenue growth year-on-year, as a result of high sales in existing stores (like for like) and in newly opened locations.
The sales results of the Dino chain in recent years have been positively influenced by dynamic growth in the number of stores, growth in sales at existing stores, the encouraging macroeconomic situation in Poland supporting growth in consumer spending, and the consistent implementation of Dino’s strategy for growing on the promising segment of proximity supermarkets.
In 2016 the Dino chain grew by 117 locations, and on 31 December 2016 had a total of 628 stores.
The Management Board of Dino Polska SA perceives the most important consumer trends affecting the behaviour of Polish customers on the retail food market, including proximity supermarkets, as first and foremost a fast-paced lifestyle, the new model for the family (including a growing number of single-person households and the growing professional activity of women), regional growth supported by EU funds, and the increasing similarity between the expectations of customers from smaller towns and the purchasing preferences in large cities.
Szymon Piduch, CEO of Dino Polska SA, commented: “The growth observed in the Polish food retail market is an effect of the encouraging macroeconomic situation, growing disposable income, and thus an increase in consumer spending. The government’s Family 500+ program and the steady increase in minimum wages promote individual consumption in Poland. This is particularly noticeable in smaller towns where Dino stores are located. The company is observing a growing number of customers spending more on their purchases at our stores, and since the end of 2016 the dynamic of consumer prices has contributed to an increase in like-for-like revenue”.
“We anticipate that the positive macroeconomic trends will continue in 2017. Rising inflation, the increase in the minimum wage from January of this year, and continuation of the Family 500+ program will have a positive impact on the retail food market”.
“We operate on the promising segment of proximity supermarkets, which according to market forecasts will be the fastest-growing retail food segment in Poland in 2015–2020 in terms of the average annual increase in the number of stores”.
“The fast life style connected with longer and longer worker hours is a major factor shaping shopping habits. Customers want to buy grocery products at locations that are nearby and convenient to them, shopping even several times a week. Meanwhile, health and consumer awareness is growing, which also contributes to the great interest in fresh, local products, perceived as healthier. The proximity supermarket segment meets customers’ changing preferences, combining a location convenient for the customer with a wide assortment, and high quality. Thanks to the scale of operations achieved by the Dino chain, we are also in a position to offer our customers attractive prices, competitive with the largest discount chains. The relatively small area of the stores in proximity segment, compared to large supermarkets, further encourages fast and easy shopping. While adapting to the new family model, proximity supermarkets also attract customers with a wide range of ready-to-eat and partially prepared products”.
“Because of consumer trends, with the right floor area and logistics the proximity segment has huge potential for regional growth, particularly in smaller cities where the residents want access to modern retail formats and a shopping experience similar to that in big cities”.
According to a report by Roland Berger, proximity supermarkets have grown faster (8.1% annually in 2010–2015) than large supermarkets, because their stores are located close to residential areas and smaller towns, and their product line is sufficiently diverse and also includes fresh produce.
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