January 18, 2012, 10:28 AM

PPR will streamline its Fnac brand

While PPR cuts costs, it also will grow e-commerce.

Mark Brohan

Research Director

Lead Photo

PPR Group is implementing a cost-cutting move at Fnac, one its biggest multichannel brands.

But in addition to cutting costs, PPR, No. 5 in the Top 300 Europe, also is looking to extend Fnac’s e-commerce capability. At Fnac, a multichannel retailer of consumer electronics, books, music, games and related merchandise, PPR is launching a plan to cut annual operating costs by 80 million euros ($102.6 million) by cutting 310 jobs in France and reviewing lease arrangements for its network of 156 stores.

Fnac also plans to consolidate some operations and review certain contracts involving its headquarters, stores and logistics programs, PPR says. But at the same time Fnac is cutting costs, the brand also is rolling out new initiatives to grow e-commerce through 2015, says PPR.

Though Fnac and PPR didn’t release any projections, Fnac is developing a mobile commerce capability and more personalized shopping technology for Fnac.com. The company also plans to roll out interactive kiosks to stores that give shoppers a chance to order merchandise online and check available inventory. “In an effort to win over new clients at a time when e -commerce is thriving, and to make the most of the brand’s attributes, Fnac will launch its first Fnac.com terminals in stores this year,” PPR says.

In the third quarter ended Oct. 29 PPR, which also owns and operates Redcats, No. 33 in the Top 500 Guide, reported a decrease in total sales of about 4% for Fnac to 960 million euros ($1.23 billion) from around 1 billion euros ($1.28 billion) in the third quarter of 2010.  The web accounted for about 20%—192 million euros ($246.4 million)—of Q3 Fnac sales, PPR says.


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