Dino Polska S.A., one of the fastest growing proximity supermarket networks in Poland opened 38 new stores in Q2 2017 compared to 28 stores last year. Therefore, at the end of June 2017, its network consists of 677 stores with a total selling area of 257.1 thousand square meters. Its network expanded by a total of 49 stores in H1 2017 compared to 46 last year. H1 2017 marked the ongoing enlargement of the Company’s volume of business supported by the robust market context, Poles’ rising income and the resurgence of inflation. According to its strategy, the Management Board of Dino Polska S.A. intends to have more than 1200 stores by the end of 2020.
In 2017 the Management Board of Dino Polska S.A. anticipates that the retail food trade will continue to grow, in the proximity supermarket segment, too, and that the positive market trends observed in 2016 will persist.
“H1 2017 was a good period for the overall market in the retail food trade and for the proximity segment in which Dino operates. We are steadily growing sales in our new and existing stores, continuing the trends observed in 2016. We have secured a pipeline of over 400 sites to build new stores and reach our target of having more than 1200 stores by the end of 2020. We would like to ramp up the number of new store openings this year, just as we have done in previous years. We usually open more stores in the second half of the year. Therefore, we will accelerate the pace of new store openings in the upcoming months.
We are constantly expanding our product range to include new and interesting branded products and we unwaveringly attach great attention to our fresh product offering that accounts for roughly 37% of our sales. We have observed robust sales in our new and existing stores. The overall market context supports further improvement in consumer sentiment. Consumer spending is climbing in conjunction with the resurgence of inflation. Poles’ rising income lends a helping hand to consumer spending. It is primarily driven by the favorable circumstances on the labor market, the 500+ program and the minimum wage hike implemented in January 2017. The upswing in disposable income translates into more frequent and more extensive shopping. The growth rate of consumer prices visible since the end of 2016 has also contributed to higher top line revenues measured by like for like sales.
The positive market trends observed in H1 2017 portend well for the upcoming months of 2017. We expect that they will act as a boon to the ongoing rapid growth of proximity supermarkets like Dino where customers shop several times a week. According to market forecasts, the proximity segment may be the fastest growing segment of the retail food trade in Poland measured using the cumulative average growth rate in the number of stores up to 2020”, says Szymon Piduch, CEO of Dino Polska S.A.
More about Dino Polska S.A.:
Dino is a leading player in the attractive and growing segment of proximity supermarkets in Poland. From 2010 to 2015 Dino was the fastest-growing chain of proximity supermarkets in Poland (in terms of the average annual rate of growth in the number of stores and sales revenue) and in 2015 achieved the number two position in the proximity segment in terms of sales (all data based on Roland Berger report from November 2016).
The Dino chain includes 677 stores (data as of 31 June 2017), located mainly in western Poland, with an average sales area of about 400 m2. Most of Dino’s stores are located in smaller towns and small and medium-sized cities, as well as on the outskirts of big cities, in locations convenient for customers.
The Group’s business model combines the advantages of the proximity format, skill at quickly opening new stores, an attractive product range mainly including branded products and fresh products, and competitive prices.
The Dino stores offer customers a range of about 5,000 different products (stock-keeping units), mostly under well-known brands and with an emphasis on fresh products. The Group offers prices for key products competitive with the largest grocery chains in Poland. One of the most important aspects setting the Group apart from discount chains is staffed meat counters in every shop. The high-quality meats, cold cuts and processed meat products are supplied mainly by Agro-Rydzyna, a meat plant which is part of the Dino Group.
The logistics network of the Dino Group is based on three distribution centres, in Krotoszyn, Jastrowie and Piotrków Trybunalski. Its geographical range enables fresh products to be delivered to all stores in the Dino chain 7 days a week.
The Company is the owner of the great majority of the properties where Dino supermarkets are located. Combined with a well-functioning business model, this has enabled quick and flexible growth of the Dino chain in recent years, with an increase in the number of stores from 111 as of the end of 2010 to 677 as the end of June, 2017.
From April 2017 the Company is listed on the WSE. Dino Group employs 10,681 people (data as of 31 March 2017).