Following on from reports that Spanish discount retailer Dia may be considering an entry into the UK, a report from Bernstein Research has suggested that Tesco or Asda could be effective collaboration partners, should it decide to make a move.
Dia chief corporate officer Amando Sánchez Falcón was quoted in The Grocer magazine (UK) as saying, "If there is someone in the UK considering developing a discount proposition, we would be ready to look at opportunities. We’ve seen Netto come in with Sainsbury’s, and that is the kind of thing we could be open to."
According to Bernstein analyst Bruno Monteyne, a collaboration model between Dia and Morrisons – as has been suggested in the UK press – would result in Morrisons potentially "cannibalising its own sales", particularly given its recent positioning as more of a value retailer.
At the same time, however, Monteyne adds, "Dia is also predominantly a franchise model. With Tesco being the only major retailer that uses franchises in the UK (for some of its One Stop stores), it may have a willing supply of franchisees ready to go.
"Alternatively, Asda could be a partner. Asda has larger out-of-town stores than Morrisons, and therefore Dia would be more complementary as a convenience channel. However, the point we made before on Morrisons, about cannibalising its own sales, would equally apply."
Nonetheless, Monteyne notes that Dia "would bring something new to the discount sector in the UK".
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