The investment will be made in three retail chains, namely SPAR Denmark, Min Købmand and Let-Køb.
As part of this plan, the company plans to open corporate stores and launch a new retailer model.
The redesigned retailer model is designed to attract independent retailers by offering them financial backing and other support.
Dagrofa said its investment in local stores comes in response to changes to the retail space caused by the Covid-19 pandemic.
Dagrofa SPAR, Min Købmand and Let-Køb chain director Esben Keller said: “We have grown in revenue and market share, which puts us in a good starting position to launch the new strategy.
“I joined Dagrofa in April 2021, in the middle of the pandemic, which called for a completely new business model and a new way of connecting with customers.
“There has been a strong movement towards local shopping, which benefits local grocery retailers.
“This year, the model will be tested in one store at a time, allowing for adaptation before being finalised.
“Independent grocery stores are a priority, and we see opportunities for growth through this model.”
Dagrofa also plans to invest to enhance its customer experience and continue its store modernisation programme.
The company will implement the SPAR Natural concept and invest in further digitalisation this year.
Created by SPAR International, the SPAR Natural concept offers eco and allergy-friendly products, categories from the Danish market and other products sourced from SPAR International.
The concept has been implemented across eight SPAR stores so far.
Keller added: “This year, we will invest in the roll-out of the SPAR Natural concept, created by SPAR International.
“The range focuses on eco and allergy-friendly products, categories that are becoming increasingly popular.”