Fnac Darty reports 'solid' 2016

Fnac Darty, the French books, music and electrical products chain that merged last year, has reported “very solid” results and strong growth for 2016, bringing forward the targeted savings of €30m euros from synergies by a year to the end of 2018. However book sales fell "slightly" in 2016, the chain's books director has said.

Group turnover rose by 2% on a like-for-like basis to €7.4bn in 2016, and current operating income by 23% to €203m, even though the two groups’ actual accounts were not consolidated until August 1st, just after Fnac’s takeover of Darty took effect in mid-July.

Sales in the group’s newly defined major geographical regions rose in France and Switzerland by 2.1%, and by 2.4% in the Benelux countries, but fell by 0.2% in the Iberian Peninsula.

“Our book sales fell slightly in 2016, as they did throughout the market because of the lack of big-selling new titles,” Coralie Piton, Fnac’s books director told The Bookseller. “But our share of the French market for print books has been rising since 2010, and last year amounted to more than 15%,” she added. E-books still represent only about 3% of total book sales in France.

Fnac Darty aims to become Europe’s leading retailer in its specialized fields, maintaining its blend of bricks and mortar and digital, Alexander Bompard, chairman and c.e.o. said, adding that he would unveil a new strategic plan stressing innovation in the autumn and had no intention of switching to a single brand.

The group will open some 50 stores in France this year, split evenly between the two brands, and several others in Spain and other countries. No more details were given, except that 45 of the 50 would be under franchise and that the group would continue to expand in Africa.

Fnac added 20 outlets to its chain in France and seven abroad last year, against a total of 15 in 2015. Altogether the Fnac Darty group will have opened about 120 stores in 2016-2017, Bompard said. However, it plans to pull out of Brazil, where it has 12 Fnac shops that have “never reached a critical mass.” The search is on for a buyer, but there “is no rush (…) the situation is under control,” he added.

After more than a year of negotiations, Fnac has also finally signed an agreement with three of the six unions, together representing 52% of staff union votes, on working conditions for Sunday and evening trading. Under the pact, nine extra stores in international tourism zones will open seven days a week, bring the total to 21 in France.

Staff working in these and other stores trading on certain number of Sundays a year will all be paid triple time for the 12 days with the heaviest customer traffic and double time for the others. The staff has several options for volunteering to work on those days, starting from March 26, and will be given financial help for child and dependents’ care. Eighty more permanent jobs will be created in the stores concerned, Fnac said.