Dia Exits Argentina as Consumption Deteriorates

Dia has sold 100% of its Argentine subsidiary to Grupo de Narváez for $53.8 million (approx. €47.8 million), resulting in an accounting loss of €100 million. The company attributes the exit to deteriorating consumption and a 20% decline in supermarket sector sales in Argentina.

The supermarket chain **Dia** confirmed the sale of its entire Argentine business to **Grupo de Narváez**, a retail holding active in Ecuador and Argentina, where it operates the **ChangoMás** supermarkets (formerly Walmart). The agreed price is **$53.8 million**, equivalent to about **€47.8 million**. The transaction, reported to the **CNMV** (Spain's securities regulator), leaves a **€100 million** hole in the group's accounts due to the difference between the book value of the stake and the sale price.

The company justifies the exit by citing the deterioration of the Argentine economy and consumption, with no signs of recovery. Specifically, Dia estimates a **20%** drop in sales across the country's supermarket sector. According to the communication sent to the regulator, the deal eliminates the need for future capital injections to sustain the Argentine subsidiary in a challenging macroeconomic environment and isolates the group's results from exchange rate volatility.

## €54 Million Losses and Cash Burned in Twelve Months

In the twelve months leading up to June 2026, the Argentine subsidiary accumulated accounting losses of **€54 million** and burned **€14 million** in cash, according to data disclosed by the company itself. In the first half alone, losses amounted to **€24 million**, with sales falling by **12%**.

Dia's CEO, Argentine executive **Martin Tolcachir**, defended the decision: "It was not an easy decision, but we are convinced it is the best for the group's future." He added that the operation strengthens financial solidity and allows greater visibility into the strength and results of the Spanish business. However, in a recent interview with **EL PAÍS**, Tolcachir had stated, when asked about a potential sale, that the activity in Argentina was "self-financed" and that the focus was on maintaining market share.

## From 1,007 Stores to 996 in Six Months

In March 2025, when Dia presented its strategic plan to investors, the company defined Argentina as a "business with great potential," with a "leading position" and a **15%** market share, rising to **30%** in Buenos Aires. Medium-term goals included increasing share through self-financed expansion and growing the store network.

As of December 31, 2025, Dia had **1,007 stores** in Argentina, **755** of which were franchise-owned. By June 30 of this year, the number had dropped to **996**. In June, the Argentine newspaper **La Nación** reported that Dia had hired **Santander** to seek an exit from the country, a claim executives neither confirmed nor denied.

## Full Focus on Spain and Refinancing Ahead

With this decision, the group directs all resources toward its most profitable and high-growth business, focusing on executing the 2025-2029 Strategic Plan in Spain. Dia now has a global CEO, Martín Tolcachir, and a CEO for Spain, **Ricardo Álvarez**, despite operating in a single market. Argentina was the last remaining business outside Spain after exits from Portugal and Brazil.

The sale coincides with the imminent negotiation, starting in January, of the group's debt refinancing. The operation closes at a time when Argentine President **Javier Milei** was attending the Ibero-American Summit held in Madrid, although the company does not link its exit to the political situation.