The social unrest in France has caused Fnac Darty to have a disappointing fourth quarter. It also became known in the margins that the company is looking for a partner for its Dutch subsidiary BCC.
70 million euros in damages
In its preliminary figures for 2019, the French retailer states that the strikes in France against the pension reform cost the company an estimated 70 million euros in turnover in December, the gift month ‘par excellence’. “For the second consecutive year, trade in France is affected by social movements in December, the most critical period for our sector”, Le Figaro quotes general manager Enrique Martinez. In 2018, Fnac Darty estimated the damages caused by the yellow vests movement at 45 million euros.
The group’s annual turnover (excluding the Netherlands) is now expected to reach 7.34 billion euros, an increase of 0.7% compared to 2018, in what Fnac Darty describes as a “particularly difficult context for the distribution sector.” The group expects an operating profit of 293 million euros, compared to 304 million euros in 2018.
On Thursday, the French group also announced that it is looking for a partner for the activities of its Dutch subsidiary BCC. Whether it is looking for an operational or a financial partner (or a combination of both) is currently unclear.
