ADB Invests $15 Million in This Discount Grocery Store Chain

The investment from Asia Development Bank (ADB) in DALI Hard Discount is seen as an effort to provide thousands of jobs, especially for women.

Manila-based Asian Development Bank (ADB) has announced that it is investing $15 million (approximately PHP 820 million) in DALI Hard Discount. “The investment in the Switzerland-based retail chain will be used “to expand its network of retail stores and distribution centers and cold chain infrastructure in the Philippines,” according to ADB’s official statement

DALI’s expansion is set to create at least 4,300 new jobs. What’s more, ADB reveals that half of these jobs will be for women. 

Contributing to Food Security and Food Safety

ADB’s investment in DALI’s expansion is likewise seen as an effort to make essential items such as food more accessible to low-income families in the country. 

“ADB’s support for DALI’s expansion will contribute to food security and food safety by ensuring essential products are available to consumers at affordable prices, in a hygienic environment, and by integrating local agricultural suppliers into the company’s supply chains,” DB Director General for Private Sector Operations Suzanne Gaboury says in a statement. 

DALI is best known for operating the DALI Everyday Grocery, which is a chain of hard discount stores in the country. In fact, ADB’s official statement notes that DALI already had more than 250 retail stores in the country by the end of 2022. It also has three distribution centers in the south of Metro Manila.

“DALI is the first company in the Philippines to focus on hard discount retailing, establishing stores mostly in rural and peri-urban communities instead of premium commercial centers in the cities,” the statement adds. “Hard discount retailing keeps product prices low through high sales volume of a limited product range and lean operations.”

According to PhilStar.com, DALI stores offer products such as rice, oil, snacks, personal care products, and even household items. 

Food Retail Industry in the Philippines

Despite the restrictions brought about by the COVID-19 pandemic in the last three years, “the sales value of food and beverage retailers in the Philippines sustained growth,” according to Statista. In fact, the sales value of food and beverage retailers here in the country reached $24.36 billion (approximately PHP 1.33 trillion) in 2021. Statista adds that this can be attributed to the expansion of e-commerce, as well as food and grocery delivery in the country

ADB’s investment in DALI is also expected to make the latter a more aggressive competitor in the food retail industry, especially in its chosen target market—given that many players in the industry have chosen to focus on supermarkets, hypermarkets, and convenience stores versus hard discount retail chains meant for low-income households. 

Statista notes that supermarkets have remained “the most popular retail outlet accounting for 42% of the total food retail sales in the Philippines” with Robinsons Supermarket leading the list of top supermarkets in terms of sales in 2021, followed by SM Supermarket and Savemore Supermarket. 

As for hypermarkets, Puregold is the leading hypermarket in terms of sales as of 2021, with SM Hypermarket and Super8 Grocery Warehouse coming in at second and third, respectively. 7-11, on the other hand, comes at number one in the list of top convenience stores in terms of sales in the same year. 

And with DALI entering the market, the country can expect more choices for their groceries, along with better accessibility for low-income households, and more job opportunities—specifically for women.