Dia rules out Carrefour Argentina acquisition

Spanish supermarket chain Dia is dismissing rumours of a possible takeover of Carrefour‘s Argentinian operations. According to CEO Martín Tolcachir, the focus is not on “inorganic growth” in the South American country, but on the recovery of its own operations.

Recovery first, despite falling sales

Dia currently has absolutely no acquisition ambitions in Argentina, the CEO emphasises. Earlier, reports circulated in the Argentine media that Dia, alongside local players such as Coto, Grupo One, La Anónima and investment fund Inverlat, was among the potential buyers of Carrefour’s more than 680 stores in the country. The French retailer wants to focus on markets with better economic prospects, according to insiders.

Although the economic crisis in Argentina continues, Tolcachir also rules out a departure from Argentina. “We have a strong position in the country, especially in Buenos Aires, and a recognisable brand among Argentine consumers”, the CEO said. The company expects the food market to recover gradually, thanks in part to adjustments in its business model.

In the first half of this year, Grupo Dia’s gross sales in Argentina fell 4 %. Adjusted EBITDA shrank by three million euros, mainly due to investments in sales margin – although cost savings partially offset it. Tolcachir says the company was able to adjust to challenging macroeconomic conditions, including high inflation and purchasing power decline.