The Dino Group’s strategy assumes further growth through focusing on three key areas: (i) continued fast organic growth of the number of stores; (ii) continued delivery of LFL sales growth; and (iii) continued improvement in profitability.
Continued fast organic growth in the number of stores
The Dino Group plans to exceed the number of 1,200 new store openings by the end of 2020 and believes there is a market capacity for at least 2,700 Dino stores in Poland. This estimate was based on the careful assessment of the current competitive landscape and the density of coverage of each region with stores of the Dino Group’s competitors.
The Dino Group plans leveraging its organic roll-out capabilities in the current format by: (i) increasing the density of store coverage in its current areas of operation: and (ii) gradually expanding in new regions.
Continued delivery of LFL sales growth
The goal of the Dino Group is to continue to deliver LFL sales growth. To achieve this objective, the Company will take actions aimed at increasing the number of shoppers in Dino stores and the amount of sales per shopper.
The Management Board is aware of key trends affecting changes in consumers’ lifestyles and grocery shopping habits, including:
The proximity supermarket format adopted by the Dino Group matches the trends in consumer behaviour described above and therefore it should allow the Dino Group to maintain its dynamic roll-out and fast LFL sales growth compared to the market.
Continued improvement in profitability
The Dino Group has been able to drive a consistent increase in its gross and EBITDA margins in the years 2014 – 2016. The aim is to continue to improve the Dino Group’s profitability through increasing the scale of its business, the favourable characteristics of its business model and a number of strategic initiatives. These include: