The Dino Group’s strategy calls for continued growth by focusing on three key areas:
Continued fast organic growth in the number of stores
Under the strategy crafted in 2016 the Dino Polska Management Board intended to increase the number of its stores from 557 at the end of June 2016 to having more than 1,200 stores open by the end of 2020. The Dino Group has consistently pursued this objective by opening 123 new stores in 2016, 147 in 2017, 202 in 2018 and 243 in 2019, thereby increasing the selling area by 24.4%, 23.8%, 27.3% and 25.7%, respectively. As a result, the strategic objective was exceeded one year earlier than originally planned. At the end of 2019, the network consisted of 1,218 Dino stores. The Management Board of Dino Polska intends to maintain the high pace of growth of the selling area in Dino stores in subsequent years, too.
Considering the relatively small share of the Dino network in the value of 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:
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 continued 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:
Continued improvement in profitability
In past years the Dino 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 Company and Dino Group’s profitability.