Electronics retailer Fnac Darty reinforces its omni-channel model and focuses on additional services and new product groups. This led to good revenue growth in the third quarter, with strong online sales.
E-commerce grows strongly
Retail group Fnac Darty, the parent company above chains such as Fnac, Darty, Natures & Découvertes, Vanden Borre and BCC, achieved a turnover of 1.859 billion euros and comparable growth of 7.3% in the third quarter of 2020. The group performed particularly well in the regions of France-Switzerland (+9%) and Belgium-Luxembourg (+6.6%), but is still severely hampered by strict restrictions in Spain (-6.1%). As a result of the good performance, the retailer was able to limit the loss of turnover due to the corona crisis to less than 100 million euro by the end of September.
The strong figures are partly due to double digit growth in online sales: while traffic in the shops is still lagging behind, click & collect is increasing in all regions. E-commerce accounted for 21% of total sales. Online sales grew by 30% in France and by more than 50% in Belgium and Luxembourg.
Broadening the offer
Another driver of growth is the diversification of the offer. The retailer is successfully focusing on new categories such as urban mobility, games, toys, and home & design. The kitchen segment is also doing well. The company is developing new services, such as Darty Max, a subscription service for electrical repairs, or the launch of an "After-Sales Service Barometer" that allows customers to compare products in terms of durability and lifespan. The group is also launching a new Fnac+ loyalty card.
In the Netherlands, the group sold its subsidiary BCC to Mirage Retail Group of entrepreneur Michiel Witteveen, who also owns Blokker, Big Bazar and Intertoys. This transaction is expected to be completed during the fourth quarter.