The French group clarified its position in regards to its presence in Brazil.
On February 28th, the French group Fnac Darty presented to its shareholders a document detailing the financial results of the group for 2016. In it, the company claimed that it was seeking a partner to take over its Brazilian subsidiary and that this process could lead to Fnac Darty discontinuing operations in the country, which represents less than 2% of the total of sales of the group. Many people interpreted this as a sign that Fnac was to leave the country soon.
However, on March 1st, the Brazilian subsidiary issued a statement claiming that the plan was misunderstood, and clarified that Fnac aims to form a partnership with another company, in order to expand its operations in Brazilian territory. Additionally, the Brazilian branch of Fnac clarified that the headquarters in France will not continue to provide financial support, hence the claim that it will discontinue operations in the country.
The CEO of Fnac Brasil, Arthur Negri, claims that the company is still trying to outline the desired profile for the ideal partner. In regards to a possible partnership with Saraiva and Livraria Cultura, two leading stores in the segment, the CEO affirmed that he has not talked with either enterprises yet, but he will soon.
As for the future of Fnac in Brazil, Arthur says that the company is considering the adoption of a new format for upcoming businesses. He cites, as examples, neighborhood stores, that are smaller and target a single segment.
According to him, this model has been implemented in Portugal and France, where it has proven successful. The CEO claims that it makes sense for smaller cities in these countries, where it would not be viable to offer the whole portfolio of products a typical Fnac store has.
The CEO is confident he will find a partner for Fnac Brasil as he believes the economy in the country is recovering from the financial crisis. The company has hired Société Générale to look for investors.