The Dino Polska’s strategy calls for continued growth by focusing on three key areas:
Dino Polska’s intention is to execute its growth strategy by further utilization of the Dino Polska Group’s strengths and its competitive advantages.
We regularly analyze the risks and opportunities related to climate change as we pursue Dino Polska’s business objectives. Conserving and managing natural resources rationally are firmly entrenched in our organizational culture, while our strategy aims to curtail gradually the environmental impact exerted by the operations of the Dino Polska Group.
The Dino Group consistently pursues the expansion of the Dino store network, opening 123 new stores in 2016, 147 in 2017, 202 in 2018, 243 in 2019, 255 in 2020 and 343 in 2021, increasing the selling area by 24.4%, 23.8%, 27.3%, 25.7%, 21.4% and 23.9%, respectively.
As a result, at the end of 2021, the Company had 1,815 stores versus the end of 2015 when the store count stood at 511. The Management Board of Dino Polska intends to maintain the high pace of growth in the number of Dino stores in subsequent years. Considering the relatively small share of the Dino network of less than 5% in the retail grocery market in Poland, the Management Board of Dino Polska plans to continue to leverage the network’s ability to grow organically in its current form by doing the following: (i) continuing to drive up its store density in its current areas of operation and (ii) steadily expanding in new regions, which ultimately should have a similar saturation of Dino stores to other regions in the country.
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:
Dino Polska anticipates that it will be able to continue growing LFL sales revenue in the current 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 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 opening new stores and to sustain a high pace of sales growth in the current store network (LfL) compared to the overall market.
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 consumers’ increasing disposable income.
The Dino Group’s ability to utilize:
In past years the Dino Polska Group has generated robust 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 Company and Dino Group’s profitability.
Dino Polska regularly analyzes the risks related to its impact on the climate as well as the climate’s impact on the business model selected by Dino Polska. The dedicated Environmental Protection Team is responsible for monitoring Dino Polska’s environmental impact and undertaking initiatives in this area.
The execution of Dino Polska’s environmental policy focusing on gradually curtailing the Dino Group’s environmental impact calls for maintaining a high level of standardization and refining Dino’s store format and distribution centers to facilitate the implementation of environmentally-friendly initiatives and enhance their effectiveness. These initiatives are followed in particular in the following three areas: