ADB invests $15m in Philippines supermarket Dali

It comes one month after private equity firms Creador and Navegar invested an undisclosed sum in the company. For regionally active Creador, it highlighted a concerted expansion in the Philippines. Manila-based Navegar has backed the company since at least August 2022.

ADB described Dali as the first company in the Philippines to focus on “hard discount” retailing, with stores mostly in rural and peri-urban communities rather than premium commercial centres in cities. This category is expected to see significant growth in light of post-pandemic pressures on local household budgets.

Dali stores control costs by offering a no-frills experience; pallets are often visible in a clean but undecorated shopping area and there are no baggers at checkout. As of the end of 2022, it had around 250 retail locations nationwide and three distribution centres near Manila.

ADB framed its investment largely in impact terms, noting 4,300 jobs would be created, almost half of which would be for women. It also plans to develop rooftop solar for 200 stores and five distribution centres – a move expected to help reduce CO2 emissions by some 3,000 tons by 2026.

“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,” Suzanne Gaboury, ADB’s director general for private sector operations, said in a statement.

“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.”

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• Topics
• Southeast Asia
• Consumer
• Expansion
• Philippines
• Asian Development Bank
• development finance institution
• Impact investment
• Food