Fnac Spain suffered the pandemic but is willing to bet on the Spanish market. The subsidiary of the French group recorded losses of 5.2 million euros in 2020, compared to the profits of 1.8 million it obtained in the previous year, according to the accounts deposited in the Mercantile Registry.
Turnover was 341.7 million euros, 9.5% less than in the previous year, especially affected by the closure of its physical stores during the months of total confinement from March to June, as well as the limitations of both capacity and surface throughout the year.
The drop in sales volume corresponding to its physical stores was partially offset by the increase in sales generated through its online store. In order to concentrate forces and optimize the available resources, the company presented different temporary employment regulation files (ERTE).
These ERTEs initially affected practically 100% of the personnel of its physical stores (1,496 workers) and a large part of the employees of the central offices (74 workers). The departure of ERTE employees took place progressively, incorporating the staff per center necessary to start the activity with all the guarantees of quality and safety for customers and for the workers themselves, according to the firm.
At the end of the financial year, although all the centers had reopened, 100% of the staff had not been reinstated since their stores are not fully operational as a result of the restrictions linked to the established capacity and surface limitations by the different autonomous communities in which they are located.
The company admits that it has partially mitigated the negative effect, linked to the drop in business volume due to the closure of its physical stores, with negotiations of its leases to obtain rents, as well as the reduction of certain operating costs ( security, cleaning, energy, maintenance and others).
However, and depending on the uncertainty about the evolution of the vaccination process and the duration of the effects of COVID-19 on the country’s economy or on the behavior of consumers in this new environment, society “does not expect that there will be other additional impacts of the aforementioned events on cash flows, equity, financial situation and results of operations ”, as stated in its report.
Billing and template
According to Fnac, the decline in sales corresponds to the average drop in total trade turnover in Spain during 2020 as a result of the global pandemic situation caused by covid-19 and that for Fnac Spain has had an impact of 57.7 millions of euros
In a context of “increasing restrictive measures related to the health crisis, which had a significant impact on store traffic,” it was partially offset by revenue through the Mine channel, says Fnac.
Despite the losses, Fnac Spain indicates that it will maintain “its total commitment” to the growth of Internet activity, whose increase during 2020 was 59% compared to the previous year, which represents 26% of the total sales figure of the company during fiscal year 2020.
For this reason, Fnac Spain assures that it will continue during the 2021 financial year with its expansion plan and will maintain its commitment to mark its greater presence by opening several centers per year in Spain. As confirmation of the growth model of its brand and, despite the global situation of economic decline experienced in 2020, Fnac Spain, inaugurated a new establishment last July, in the La Salera shopping center. in Castellón, which represents a total of 39 establishments between own and under franchise.
Looking ahead to 2021 and, over the next four years, the Company will implement the Everyday strategic plan announced by its French parent company Fnac Darty, based on the expansion of its omnichannel model. “This new strategic plan is the response to the growing digitization of consumption, the demonstrated importance of human contact and the need to work towards a consumption more in line with social and environmental challenges,” indicates the commercial chain.