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Dali Everyday Grocery

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Dali Everyday Grocery
Company typeAktiengesellschaft (AG)
IndustryRetail
Founded2020; 4 years ago (2020)
HeadquartersZug, Switzerland
Number of locations
630 (2024)
Area served
Philippines
Key people
Andreas Höfner (chairman)[1]
Joerg Gruenewald (CFO, HDPI)[2]
Products
SubsidiariesHDPM Sin Pte. Ltd.
Hard Discount Philippines Inc.
Websitedali-discount.com
dali.ph

Dali Discount AG, doing business as Dali Everyday Grocery[a] or simply Dali (stylized in all caps), is a Swiss international hard discount retail chain with a primary focus on Southeast Asia, particularly the Philippines. Its Singapore-based subsidiary, HDPM Sin Pte. Ltd., operates a local subsidiary known as Hard Discount Philippines Inc. (HDPI), which is headquartered in Carmona, Cavite.

It is organized as an Aktiengesellschaft (AG), a German word that is roughly equivalent to a joint-stock company, and is headquartered in Zug, Switzerland.[3] As of 2024, Dali has at least 630 stores in the Philippines, all located in Luzon.

History[edit]

Dali opened its first store in February 2020 in Santa Rosa, Laguna, and by the end of 2022, it had at least 250 stores in the Philippines.[2] In March 2023, the Asian Development Bank (ADB) invested US$15 million to support the retail chain's expansion.[4] Earlier that year, Malaysian-based private equity firm Creador invested US$50 million in Dali's expansion. This followed Philippine-based private equity firm Navegar's undisclosed investment into Dali, which began in August 2022.[5] In 2024, Singapore-based equity firm Venturi Partners invested US$25 million to Dali.[6]

In April 2024, the number of stores increased to 630 (all in Luzon), with plans have a total of 950 stores by the end of the year.[7]

Business model[edit]

Dali is the first company in the Philippines to pioneer hard discount retailing in the country, with a focus on underprivileged communities as its primary market. Its stores are leanly staffed, often with just two cashiers and no baggers, which helps reduce labor and stocking costs. They display products in their original boxes and avoid elaborate interiors and extensive advertising costs, akin to a supermarket model originating from Germany. Typically, they are small and located in rural, peri-urban, and lower-income areas rather than city centers.[8][9][2]

Products[edit]

Dali's range of products includes everyday household items such as snacks, kitchen staples, and cleaning supplies. While it retails some popular branded items, the majority of its products are proprietary brands that closely resemble well-known ones, bordering on copyright infringement. Dali claims that the quality of their private label products "meets or exceeds the equivalent national brands sold in other national retail chains" while being significantly more affordable.[9] Around 60–70% of its products are sourced locally in the Philippines and the remainder are imported from Malaysia, China, South Korea, and Europe.[10][11]

Reactions[edit]

Writing in The Philippine Star, author and businessman Joey Concepcion described the entry of Dali, a hard discounter, into the Philippine market as a "disruption" to sari-sari stores, which he called "the very symbol of micro-entrepreneurship in the Philippines".[12]

Criticisms and controversies[edit]

On May 16, 2024, consumer advocacy group Malayang Konsyumer filed a complaint with the Fair Trade and Enforcement Bureau of the Department of Trade and Industry (DTI) concerning Dali's alleged unfair business practices, which include inaccurate pricing and weighing of chicken, as well as the erroneous inclusion of items in invoices.[13][14] In response, the DTI stated that it is conducting an investigation on the matter and reported that 82 select Dali branches they monitored have complied with the Suggested Retail Price (SRP) and Price Tag Law during routine checks between January and April 2024.[15][16]

Notes[edit]

  1. ^ Sometimes also referred to as Dali Stores.

References[edit]

  1. ^ Höfner, Andreas (March 14, 2022). "Invitation to the Extraordinary General Meeting of DALI DISCOUNT AG (the Company)" (PDF). Zug, Switzerland.
  2. ^ a b c Mercurio, Richmond (February 7, 2024). "DALI gears up for expansion". The Philippine Star. Retrieved May 22, 2024.
  3. ^ "Equity Investment HDPM Sin Pte. Ltd. Dali Modern Food Retail Expansion Project (Philippines)" (PDF). Asian Development Bank. March 2023. Retrieved May 22, 2024.
  4. ^ Cordero, Ted (March 9, 2023). "ADB invests $15M in DALI 'hard discount' grocery chain in Philippines". GMA Integrated News. Retrieved May 22, 2024.
  5. ^ Nguyen, Thi Bich Ngoc (February 1, 2023). "Malaysia's Creador invests $55m in Philippines-focused DALI Stores". DealStreetAsia. Retrieved May 23, 2024 – via Nikkei Asia.
  6. ^ Cao, Sean (March 27, 2024). "Philippines' grocery retailer Dali Discount bags $25 million investment". Inside Retail Asia. Retrieved May 23, 2024.
  7. ^ Arcalas, Jasper Emmanuel (April 11, 2024). "DALI targets 950 stores by year-end". The Philippine Star. Retrieved May 23, 2024.
  8. ^ Diela, Tabita (March 8, 2023). "ADB to invest $15m in Philippines-focused grocery chain DALI". DealStreetAsia. Retrieved May 23, 2024 – via Nikkei Asia.
  9. ^ a b Yu, Lance Spencer (January 28, 2024). "LOOK: How hard discount grocery DALI wins over value shoppers". Rappler. Retrieved May 23, 2024.
  10. ^ Cruz, Beatriz Marie D. (April 10, 2024). "DALI targets to expand presence in Luzon with 950 stores by yearend". BusinessWorld. Retrieved May 23, 2024.
  11. ^ Ordinario, Cai U. (April 11, 2024). "Demand for affordable items drives Dali rapid expansion". BusinessMirror. Retrieved May 23, 2024.
  12. ^ Concepcion, Joey (February 19, 2024). "The sari-sari store disruption". Go Negosyo Pilipinas Angat Lahat!. The Philippine Star. Retrieved May 23, 2024.
  13. ^ Romero, Maria Bernadette (May 19, 2024). "Consumer group wants probe on alleged unfair grocery chain practice". Daily Tribune. Retrieved May 23, 2024.
  14. ^ "DTI asked to look into complaints vs supermarket chain". Malaya. May 19, 2024. Retrieved May 23, 2024.
  15. ^ Ayeng, Raffy (May 31, 2024). "DTI: DALI Everyday plea under probe". Daily Tribune. Retrieved May 31, 2024.
  16. ^ Monzon, Alden M. (May 31, 2024). "BIZ BUZZ: DTI probes 'deceptive' retailer". Philippine Daily Inquirer. Retrieved May 31, 2024.