ADB invests $15 million in DALI discount store

MANILA, Philippines — The Asian Development Bank (ADB) is investing $15 million to support the expansion of Switzerland-based discount grocery store chain DALI in the country as part of efforts to make essential items more accessible to low-income households and create new jobs.

In a statement, the multilateral lender said it approved an equity investment of $15 million to support the expansion of DALI’s retail stores, distribution centers and cold chain infrastructure in the country.

According to the ADB, the investment will finance off-grid rooftop solar panels for 200 stores and five distribution centers including green building certification for sample buildings. This will reduce at least 3,000 tons of carbon dioxide emissions by 2026.

DALI is the first company in the Philippines focused on hard discount retailing or selling products at low prices, but with a limited product range and lean operations.

DALI’s stores sell basic food items like rice, oil, sauces, snacks, and beverages, personal care products like soaps and toothpaste, and household items like cleaning products and detergents.

Rather than setting up its presence in premium commercial sites in cities, the DALI Everyday Grocery hard discount stores are being established mostly in rural and peri-urban communities.

As of the end of 2022, DALI had more than 250 retail stores and three distribution centers in the south of Metro Manila.

“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,” ADB director general for private sector operations Suzanne Gaboury said.

Earlier this week, the Philippine Statistics Authority reported that the country’s inflation rate eased slightly to 8.6 percent in February from the 14-year high of 8.7 percent in January.

“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,” Gaboury said.

DALI’s store expansion is expected to create at least 4,300 new jobs, with almost half for women.

ADB said the store expansion is aligned with the Philippines’ plan to improve access to value chains for rural suppliers and promote competition in the retail sector.

The project is in line with the ADB’s $14 billion program to promote long-term food security in Asia and the Pacific.