France: Dia contemplates pull-out
Sources in France indicate that Spanish retail giant Dia may be giving consideration to a divestment of its retail activities in France.
According to LSA, a full or partial sell-off of Dia’s French operations may be on the cards, in a move that would affect some or all of Dia’s 888 stores in the country. Dia’s own figures show that the French subsidiary currently employs more than 7,600 staff and generates a turnover of € 2.45 billion per year, making the French operation second only to Spain in number of stores, headcount and revenue.
The Dia group operates in five countries across three continents, including emerging economies such as Brazil and China. It has more than 5,000 stores globally and an annual turnover of more than €11.1 billion. As such, the French subsidiary represents around 18% of global store numbers and 22% of annual group revenue, based on current company figures.
In April of this year, Dia announced the sell-off of its Turkish subsidiary, in which it had a 60% stake, to the Turkish conglomerate Yildiz Holding, reportedly bringing in a little over € 30 million for the Spanish group and effectively signalling the end for the Dia brand in Turkey.
A spokesperson for Dia is quoted as saying: “All options are on the table.”