Brazil: Dia to close 343 stores

Spanish retailer Dia has announced plans to close 343 stores and three warehouses in Brazil as part of a strategic review of its business in the country, according to an ESM report.

The closures would affect more than half of the roughly 600 stores Dia operates in the country. In a statement, the company said it planned to concentrate its efforts the Sao Paulo region, where its store count is currently 244, with the aim of achieving higher profitability and cost reduction by leveraging store concentration and its logistics network.

The decision comes after Dia reported a loss of €154 million ( $175 million) in Brazil in 2023.

In a filing to the Spanish stock market regulator CNMV, the retailer said it now aimed to direct its resources towards markets offering better growth prospects and increased profitability, such as Spain and Argentina.

Last August, the retailer also announced it would be exiting Portugal by the beginning of this year, selling nearly 500 supermarkets to Auchan Portugal.

Source: ESM