Dia changes focus from discounters to supermarkets | RetailDetail

Dia changes focus from discounters to supermarkets

Only just separated from former mother holding Carrefour, hard discounter Dia has already made an important and remarkable decision for the Chinese market: it will switch its attention from discounters to supermarkets. Yesterday PlanetRetail reported about this move, that would have been impossible while Dia was still under Carrefour's wings – even though Carrefour has no supermarkets in China. 

 

'Agequake'

Dia, whose projected format for China is one of 500 m² supermarkets focussing on fresh and frozen food products, seems to be very much in touch with the changing demographics in China. Much like in Western Europe, society in China is ageing – but the Chinese change happens considerably faster because of the one-child policy. 

 

Martin Walker, senior director of AT Kearney’s Global Business Policy Council, launched the idea of an 'agequake' on the Consumer Goods Forum Global Summit last month: the population pyramid in many countries is disappearing as birth rates decrease and people live longer. In 2047, Walker predicted, the Earth could for the very first time see the number of over-60s exceeding that of the young. “People over sixty generally prefer smaller local stores over discount stores or hypermarkets, as they need smaller quantities and often do not use a car to go shopping”, he said.

 

Carrefour has created its own competitor

While China is clearly the best place for Dia to start this change in focus, both because of the speed of ageing and the lack of Carrefour's supermarkets, it is very well possible that Dia supermarkets will appear elsewhere too. Specialists point to countries like France, Spain, Portugal, Turkey, Brazil or Argentina, where Carrefour has invested significantly in supermarkets and hypermarkets. As such, Carrefour might have created a very strong challenger in markets that are of critical importance to the French hypermarket giant.

 

 

(You can find Martin Walker's report, The maturing consumer, here).

Only just separated from former mother holding Carrefour, hard discounter Dia has already made an important and remarkable decision for the Chinese market: it will switch its attention from discounters to supermarkets. Yesterday PlanetRetail reported about this move, that would have been impossible while Dia was still under Carrefour's wings – even though Carrefour has no supermarkets in China. 

 

'Agequake'

Dia, whose projected format for China is one of 500 m² supermarkets focussing on fresh and frozen food products, seems to be very much in touch with the changing demographics in China. Much like in Western Europe, society in China is ageing – but the Chinese change happens considerably faster because of the one-child policy. 

 

Martin Walker, senior director of AT Kearney’s Global Business Policy Council, launched the idea of an 'agequake' on the Consumer Goods Forum Global Summit last month: the population pyramid in many countries is disappearing as birth rates decrease and people live longer. In 2047, Walker predicted, the Earth could for the very first time see the number of over-60s exceeding that of the young. “People over sixty generally prefer smaller local stores over discount stores or hypermarkets, as they need smaller quantities and often do not use a car to go shopping”, he said.

 

Carrefour has created its own competitor

While China is clearly the best place for Dia to start this change in focus, both because of the speed of ageing and the lack of Carrefour's supermarkets, it is very well possible that Dia supermarkets will appear elsewhere too. Specialists point to countries like France, Spain, Portugal, Turkey, Brazil or Argentina, where Carrefour has invested significantly in supermarkets and hypermarkets. As such, Carrefour might have created a very strong challenger in markets that are of critical importance to the French hypermarket giant.

 

 

(You can find Martin Walker's report, The maturing consumer, here).

Questions or comments? Please feel free to contact the editors


Komono wants to reach 10 physical stores this year

17/05/2018

Belgian accessory label Komono wants to double its number of physical stores to ten this year. “The stores are important to tell our story”, Anton Janssens and Raf Maes told De Standaard.

Hema has to pay Levi's millions

17/05/2018

Store chain Hema needs to pay a 4.4 million euro fine to jeans brand Levi’s after the latter went to court because Hema applied its V-shaped stitching to its own collection.

Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.

H&M is turning to algorithms to boost sales again

14/05/2018

In an effort to reverse the decline in its worldwide sales, H&M is using technology that will help the world’s largest clothing brand stock its stores more efficiently, sell more effectively and adapt more quickly to current consumer trends.

Zalando's profit wiped away in first quarter

08/05/2018

German online retailer Zalando saw its first quarter profit completely wiped away: last year's 5.1 million euro net profit turned into a 15 million euro loss. Turnover grew 22 %, investments being the cause for both.