Distribuidora Internacional de Alimentacion SA · BME:DIA
Distribuidora Internacional de Alimentacion SA — Investor Day (2014)
43 slides from Distribuidora Internacional de Alimentacion SA's investor day presentation, 2014
Slide 1: Investor Day 2014
IN ESTOR IY, (4) DAY 2014
Slide 2: Welcome – Bienvenidos – Bienvenue
WELCOME – BIENVENIDOS - BIENVENUE
Slide 3: Investor Day 2014
IN ESTOR IY, (4) DAY 2014
Slide 4: From Schlecker to Clarel – Juan Cubillo, Chief Commercial Officer
FROM TO Juan Cubillo Chief Commercial Officer DIA Group
Slide 5: Schlecker acquisition path
Schlecker acquisition path Summer 2012 Starting negotiations with Schlecker September 2012 DIA acquires Schlecker’s Iberian business January 2013 Unconditional approval of Schlecker acquisition 1st February 2013 Schlecker acquisition closed Page 1
Slide 6: Fast and successful integration process
Fast and successful integration process / Successful negotiation with / Sales network suppliers integrated / New model / Loyalty program developed / IT systems introduced integrated 1st February 2013 / Schlecker purchase closed Page 2
Slide 7: Schlecker image is not about sophistication
Schlecker image is not about sophistication Page 3
Slide 8: Looking for inspiration in other successful concepts
Looking for inspiration in other successful concepts Page 4
Slide 9: Spain HPC market is plenty of opportunities for Clarel
Spain HPC market is plenty of opportunities for Clarel SPANISH FMCG MARKET Market Share % % Sales Specialists Generalists Pet Care ≈ 3% ≈ 40% ≈ 60% Baby World ≈ 3% ≈ 20% ≈ 80% Beauty / Hygiene ≈ 17% ≈ 50% ≈ 50% Household ≈ 7% ≈ 6% ≈ 94% Food ≈ 70% ≈ 7% ≈ 93% TOTAL 100% ≈ 15% ≈ 85% Source: Kantar 201
Slide 10: Clarel will boost market share in the mid-term
Clarel will boost market share in the mid-term SPANISH FMCG MARKET Market Share % Clarel Target % Sales Schlecker 2016 Pet Care ≈ 3% ≈ 1% ≈ 3% Baby World ≈ 3% ≈ 3% ≈ 5% Beauty / Hygiene ≈ 17% ≈ 2% ≈ 5% Household ≈ 7% ≈ 2% Food ≈ 70% ≈ 0.1% TOTAL 100% ≈ 0.6% Source: Kantar 2012 Page 6
Slide 11: What is the aspiration of Clarel?
What is the aspiration of Clarel? To become the Iberian retailing benchmark in the following categories: • BEAUTY/HYGIENE • BABY WORLD • PET WORLD • HEALTH PRODUCTS Page 7
Slide 12: Two brands with similar image and different competitive advantage
Two brands with similar image and personality and different competitive advantage DIFFERENT COMPETITIVE ADVANTAGE Price Product Low Prices Proximity IMAGE Good deals Value for money Proximity Good deals SIMILAR Close Close PERSONALITY Accessible Accessible Source: Interbrand Page 8
Slide 13: What is Clarel? A new commercial concept
A new commercial concept What is ? Page 9
Slide 14: Slide 14
Slide 15: Slide 15
Slide 16: Clarel brand logos
Slide 17: Examples of communication
Examples of communication Page 13
Slide 18: What does Clarel need to become a truly HPC specialist?
What does Clarel need to become a truly HPC specialist? Commercial proposition of a specialist Big assortment, high innovation, leader price image, strong promotional activity… Store layout Fashionable and pleasant but simple at the same time Store implementation Emotional area and rational area Ada
Slide 19: What will the assortment be?
What will the assortment be? EMOTIONAL • Hygiene & Beauty care categories: • Baby Boosted, pleasant • Bazaar connected with and advised Hygiene & Beauty care Health purchase • Pet food and wellbeing RATIONAL • Cellulose categories: • Household products • Bazaar connected with Planned purchase househ
Slide 20: We have to increase our private label weight
We have to increase our private label weight Private label weight in sales (%) 40 30 20 34.7 35.2 28.2 26.0 10 0 German retailer A 2011 2012 German retailer B Source : Nielsen How? • Implementing a multi-brand private label strategy • Working on Beauty and Health products with strong development of
Slide 21: Multi-brand private label strategy
Multi-brand private label strategy Mono-Brand Multi-Brand Page 17
Slide 22: New private label brand strategy
New private label brand strategy categories Rational FOOD, CELLULOSE HOUSEHOLD COLOR COSMETIC New design categories and Emotional PET FOOD packaging BABY & KID’S CATEGORIES NEW PERSONAL BRAND CARE Page 18
Slide 23: With Bonté, we are becoming a specialist in beauty products
With Bonté, we are becoming a specialist in beauty products Page 19
Slide 24: Bonté sub-brands portfolio
Bonté sub-brands portfolio Less brand More brand Less price Brand mapping More price Protection Equity Standard range Premium range Special range General Particular Page 20
Slide 25: Bonté umbrella brand: Everyday
Bonté umbrella brand: «EVERYDAY» Page 21
Slide 26: Bonté umbrella brand: Toujours Belle – facial cleansing for all skin types
Bonté umbrella brand: «TOUJOURS BELLE» Facial cleansing for all skin types Page 22
Slide 27: Bonté umbrella brand: Toujours Belle – facial cleansing: sensitive skin
Bonté umbrella brand: «TOUJOURS BELLE» Facial cleansing: sensitive skin Page 23
Slide 28: Existing layout of Schlecker can be improved
Existing layout of Schlecker can be improved • Typical food supermarket • High shelves • All categories treated in the same way Page 24
Slide 29: New layout improves customer experience
New layout improves customer experience Big store EMOTIONAL CATEGORIES Open area with visibility Low shelves Specific lighting Promotional Area Small store RATIONAL CATEGORIES High shelves area Traditional layout like in a supermarket Page 25
Slide 30: Wider assortment in emotional categories
Wider assortment in emotional categories NUMBER OF STOCK KEEPING UNITS (SKU’s)* Schlecker Clarel Change Emotional categories 3,100 4,350 +40% (beauty, health, baby, pet) Rational categories 2,050 1,850 -10% (household, bazaar, food) TOTAL 5,150 6,200 +20% (*) Source: Internal data, December 2013 ass
Slide 31: Clarel offers 20% more SKUs
Clarel offers 20% more SKU’s Page 27
Slide 32: Very positive customer response
Very positive customer response • Wide range of assortment, brands and low prices Positive aspects • Fashionable, bright and innovative • Comfortable shopping experience and wide aisles • Pleasant and professional personnel improvements Potential • National communication • Private label growth Page
Slide 33: Enthusiastic comments from focus groups
Enthusiastic comments from «Focus groups» • “It’s a classic drugstore, it has all sorts of products.” • “The fact that Clarel stocks DIA brand products is positive – we know that brand.” • “There is more of everything, and more brands. They have more choice.” • “Clarel has good prices – a local drug
Slide 34: The DIA Club loyalty programme is a great success
The “DIA Club” loyalty programme is a great success • Exceptional response and welcome of the DIA Club program. • Last February 67% of the Schlecker/Clarel sales were done through the loyalty program. • Coupons offer a differential attractive to customers (circa 5 million coupons printed in February
Slide 35: Growing contribution from emotional categories
Growing contribution from emotional categories SALES WEIGHT BY CONCEPT Schlecker Clarel Emotional categories (beauty, health, baby, pet) 59% 68% Rational categories (household, bazaar, food) 41% 32% Source: Internal data, 31 December 2013 assortment Page 31
Slide 36: Promising results from the first remodelled shops
Promising results from the first remodelled shops SALES UPLIFT Change in # Clarel stores sales Spain 32 > 15% Portugal 18 > 20% Source: company data, February 2014. Page 32
Slide 37: From Schlecker to Clarel; remodelling plan
From Schlecker to Clarel; remodelling plan • More than 550 Schlecker stores will be converted to Clarel in Spain and Portugal during the year 2014 • The remaining Schlecker stores will be upgraded to Clarel in 2015 • The investment required for the conversion of the stores ranges from 30,000 to 40,0
Slide 38: Enormous expansion potential in Iberia
Enormous expansion potential in Iberia Original Schlecker presence New Clarel expansion 1083 stores No Schlecker or Clarel presence 52 stores Clarel and Schlecker presence in Portugal 63 stores Company data, February 2014 Page 34
Slide 39: Big room to grow in Spain and Portugal
Big room to grow in Spain and Portugal • In 2014 we expect to open more than 100 new Clarel stores in Spain in Portugal. • As from 2015 the company will add more than 150 Clarel stores per year, a growth rate that can be maintained for several years. • The investment required for opening a new Clare
Slide 40: We have successfully launched the franchise model
We have successfully launched the franchise model Well received by our franchisees We already have 27 stores managed by franchisees (*) Good economic model for both parties Great potential in small villages (*) As of 31 December 2013 Page 36
Slide 41: Clarel improvements will be reflected in the DIA stores
Clarel improvements will be reflected in the DIA stores Specific know-how in this segment Different operational process Private label development more suited to this segment (multibrand strategy) Significant increase in volumes involved in supplier negotiations New beauty section in DIA Market and D
Slide 42: Clarel, a new growth avenue
Clarel, a new growth avenue • Clarel is a complementary business model for DIA. • Very good customer acceptance of Clarel. • Encouraging sales uplift in the remodelled stores, with better ROI than the traditional DIA business in Iberia. • Huge expansion room in Iberia, and high potential for interna
Slide 43: Investor Day 2014 – Clarel. Discover. Smile. Shine.
vistor DAY 2014 clarel°© Discover. Smile. Shine. COPA DEL MUNDO DE BALONCESTO FIBA ESPANA 2014
Distribuidora Internacional de Alimentación (DIA) — Investor Day (2014) on 6ix