Spanish supermarket chain DIA exits Argentina with $53.8 million sale

Distribuidora Internacional de Alimentacion SA

Today 18:42

By Mireia Merino
Nov 5 (Reuters) - Spanish supermarket chain DIA DIDA.MC said on Thursday it was selling its Argentine business to local retailer Dorinka for $53.8 million, exiting a market that has weighed on the company's earnings in a sustained period of economic turbulence. 
DIA had repeatedly reaffirmed its commitment to the Latin America country, but also struggled with years of economic volatility, currency depreciation and weak consumer demand, making the business increasingly difficult to sustain.
The deal is the final step in DIA's years-long retreat from Latin America following its exit from Brazil, allowing the retailer to focus on Spain, its most profitable market
"We enter in a new phase of growth fully focused on Spain," CEO Martin Tolcachir said in a statement
Argentine supermarket sales have fallen more than 20% since 2023, with the unit posting a €54 million ($60.67 million)accounting loss in the 12 months to June 2026
DIA expects the deal to have a one-off impact of about €100 million, while securing $53.8 million in cash upon closing and with funds to be reinvested to accelerate expansion in Spain
The company was not immediately available to respond to a Reuters request for comment
The deal is expected to close on November 12


($1 = 0.8901 euros)

 (Reporting by Mireia Merino; Editing by Susan Fenton)
 ((Mireia.merino@thomsonreuters.com))