The ailing French baby and children’s retail chain Orchestra-Prémaman saw its turnover increase slightly in the first nine months of the financial year. However, the way this was achieved is by no means a reason for celebration.
Drop in BeLux
Orchestra-Prémaman is under creditor protection since the end of September and is working on its recovery. In the first nine months of the financial year, the French chain achieved a turnover increase of 0.7 % to 436.8 million euros. However, unsold stock is mounting and sales at dumping prices have risen sharply, French news website Les Echos reports: turnover from this activity increased by more than 52 %. In the third quarter (September to November), that kind of turnover more than doubled to 4.7 million euros (+ 134 %), while revenue from regular trading activities actually decreased by 0.4 %.
In France, Orchestra-Prémaman generated an almost flat turnover of 270.7 million euros in the March-November period, the home market accounting for 62 % of total turnover. The company saw revenues from textiles and baby products increase by 3.9 % and 4.4 % respectively. However, revenue from the loyalty programme - where, for a fixed monthly fee, customers receive a discount on all purchases - fell by more than 24 %. According to the chain, in the same period in the previous year, promotional offers were held around the club card to attract new customers. At the end of the third quarter, the chain's loyalty programme had 1.8 million subscribers.
In Belgium and Luxembourg, revenue decreased by 1.1 %, reaching 53.7 million euros. Both countries account for 12.3 % of group turnover. In the remaining countries, there was a growth of 3.8 %.
Given the delicate situation, the group does not give a forecast for the year, but confirms the preparation of a rescue plan in France and a judicial reorganisation by a collective agreement in Belgium.