Day% network diversifies shops and invests in own brand

The Spanish network of supermarkets Day%, which debuted in the country in 2001 to meet the C class and at the time belonged to the Carrefour, is changing. From 2014, the simple stores and stocked with basic items, many of them from his own brand that bears the name of the company, are giving space to points of sale with the flag Day Market. Are simple but still shops that offer services such as fresh bread and cold cuts sliced at the time.
Currently are 50 stores with that flag, in a universe of 800, between Maxi and Dia%, which is most of the points of sale. The shops of the day Market are a business model similar to that followed by the company in other countries where the Group operates, such as Spain, Portugal, Argentina and China.
In addition to the advancement of this new store model, this year, the network took another step to consolidate the change of profile: started investing in own-brand products, but niche, which does not always refer to the name of the network. "The sophistication of own-brand products began earlier this year," says the Director of the company's own brand, Luciana Tortorelli.
In addition to the traditional Day%, the company has four more niche brands: Bonté, items of personal hygiene; the Baby Smile, focused on children's items; (a) feedingstuffs for dogs and cats; and Delicious, which is a line of gourmet foods. By the end of the year, is scheduled more brand, the Vital, which will bring together healthy foods, such as cereals and wholemeal biscuit.
Luciana reveals no investments, but says the aggressive design of own brand had been traced for over two years and coincidentally the products are coming to market when the economy is facing a recession and consumers seeking alternatives to save. "Companies that are structured will surf this wave of his own brand," says marketing director, Kanaka Schendenffeldt.
In Brazil, the private label accounts for 35% of the net revenue that closed the first half with net sales of €758,6 million (us $ 2.9 billion), according to the balance sheet. The group as a whole, the share of private label is 43% of net revenue of € 4.3 billion registered in the first semester. "Our idea is to reach at least the percentage of the Group (43%) in up to five years," predicts Luciana.
While the brand has significant slice of the Spanish retailer's sales in Brazil this type of product still crawls, but the perspective is changing. According to Marco Quintarelli, AZO consultancy and one of the founders of the Brazilian Association of own brands, private label accounts for about 5% of the sales of food, hygiene and cleaning products, according to a survey by consultancy Nielsen.
In recent months, because of the downturn in the economy, he noticed a surge of interest from supermarkets, especially the regional have their own brand. The difference of these products is the price, depending on the item, can be between 5% and 25% lower compared to traditional brand because of the Elimination of the marketing costs. The day%, for example, Luciana says that the basket of own brand products of the company is between 15% and 20% cheaper compared to traditional brands items.
Test
Today the company has 1,000 own brand products between domestic and imported. The goal is to achieve by December 1.2 thousand items. Even the high-dollar hinders retailer's plans to expand the number of own brand products, which today gathers 150 foreign items. "We do joint imports by the Group and this makes these competitive items," says the Director.
Another factor used by the company to increase the competitiveness of the brand itself is the reduction of logistics costs. The network has nine distribution centers, six in the State of São Paulo and the remainder in Minas Gerais, Bahia and Rio Grande do Sul.
According to Luciana, in each distribution centre there is a lab that tests 65% of own-brand products that enter at the company. These tests are checked if the products meet the quality requirements agreed upon with approximately 200 industry suppliers of.
With 8 thousand shops, net sales of the group in the world closed the first half of this year with growth of 13.4% over the same period to 2014 in constant currency, being pulled by the emerging countries, which registered a 21.6%. The highlight was for Argentina (36.9%), which accounted for 16.6% of the business.
The 800 stores across four Brazilian States participated with 17.5% in Group sales that grew 13.6 percent in the country. The Iberian Peninsula (Portugal and Spain) accounted for 63.8% of the net revenue of the Group and registered a 9.4% in the period.