ADB invests $15M in DALI ‘hard discount’ grocery chain in Philippines

The Asian Development Bank (ADB) is investing $15 million to support the expansion of Swiss “hard discount” grocery chain DALI’s network in the Philippines.

In a statement, the ADB said it signed a $15-million equity investment deal with DALI.

The investment will support the grocery chain’s network of retail stores and distribution centers and cold chain infrastructure in the Philippines, which would create at least 4,300 new jobs, “nearly half of them for women.”

“Almost half of households in the Philippines are moderately or severely food insecure, and rising inflation is making it more expensive for them to purchase essential household products,” said ADB director general for Private Sector Operations Suzanne Gaboury.

“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,” said Gaboury.

The ADB said 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 bank said “hard discount” retailing keeps product prices low through high sales volume of a limited product range and lean operations.

The Manila-based multilateral lender said the project will also finance off-grid rooftop solar panels for 200 stores and 5 distribution centers including green building certification for sample buildings and reducing at least 3,000 tons of carbon dioxide emissions by 2026.

DALI operates the DALI Everyday Grocery chain of hard discount stores in the Philippines.

As of the end of 2022, DALI has more than 250 retail stores and three distribution centers in the south of Metro Manila.—AOL, GMA Integrated News