France's Fnac chain sees 2015 profit leap

Fnac, France’s largest cultural products chain, has reported a strong profit increase in 2015.

Current operating profit rose 10.2% from 2014 to €85m and net profit rose 16.7% to €48m. Although group sales fell by a slight 0.5% to €3.9bn, they held up well in Europe in the fourth quarter despite the terrorist attacks in Paris, and alerts in Belgium and Switzerland.

The group opened 15 new stores in 2015, against 11 the previous year, including five in France, two in Spain, one in Qatar and one in the Ivory Coast. The aim is to open about 20 more this year. 

Despite the group’s diversification, including the planned takeover of the electrical goods chain Darty Plc, books continue to play an important role in the operation, Alexander Bompard, chairman and c.e.o. indicated.

Plans are to hold a Forum Fnac Livre festival at an unnamed Paris store at the beginning of September, similar to the Fnac Live event for music, and to launch a pilot scheme for a new concept book section at the Vélizy store just outside Paris in May, with a focus on advice to customers.

Two-hour deliveries will be extended from Paris and Lille to five other, currently unnamed, cities in France this year, and digital services will be upgraded to compete with Amazon, added Bompard, who became chief in 2010 after the group had failed to find a buyer and took the group public in 2013.