The Dino Polska Group’s strategy calls for continued growth by focusing on three key areas:
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:
In the opinion of the Company’s Management Board, the attainment of this goal will be supported by the potential of the Polish market, still leveraged by the Company only to a small extent, extensive experience of Dino Polska’s management in selection of attractive locations and uniform store format which supports fast opening of new stores.
In the next few years the Dino Group intends to make additional investments supporting new openings, including:
Continued delivery of LFL sales growth
Dino Polska anticipates that it will be able to continue growing LFL sales revenue in the existing store network. For this purpose, the Company will undertake efforts to increase the number of clients doing their shopping in Dino stores and the value of purchases per client. Dino Polska is aware of the key trends contributing to a change in the lifestyle led by consumers and the customs concerning the purchases of groceries, also including the following:
The model adopted by the Dino Polska Group of having modern medium-sized supermarkets situated close to peoples’ place of residence is aligned to the consumer trends described above. The Company expects that this will continue to translate into the ability to sustain a high growth rate of pening new stores and to sustain a high pace of sales growth in the existing store network (LFL) compared to the overall market.
In addition, the Company intends to continue an active product range policy, providing for constant adaptation of the Dino stores’ offering to customer expectations, which will evolve together with the consumers’ increasing disposable income.
The Dino Group’s ability to utilize:
Continued improvement in profitability
In past years the Dino Polska Group has generated long-lasting growth in its gross margin on sales and its EBITDA margin and it expects that it will be capable of improving its profitability by increasing the magnitude of its operations, the favorable nature of its business model and several strategic initiatives. They comprise:
Dino Polska anticipates that all these strategic initiatives and characteristic attributes of its business model will contribute to further improvement in the Dino Polska and Dino Polska Group’s profitability.