fnac.com
Since its creation in 1954, Fnac has proposed a comprehensive cultural offering and access to a maximum of technological products. The company sets itself apart from its competition through its unique brand positioning based on exciting the pleasure of discovering a diversity of cultures and technologies. Fnac’s unique product range consists in offering an unrivalled selection of books, CDs, DVDs, video games and technical products. This product range is supported by its impartial and innovative advice. Its physical and on-line multi-specialist stores are not only used for purchases: they provide a cultural, social and exchange forum. Fnac is present in 8 countries, namely France, Belgium, Switzerland, Italy, Spain, Portugal, Greece and Brazil, and has 131 stores, including 54 at the international level, with a selling area of nearly 500,000 square metres.
Its 77 French stores receive over 150 million visitors and 18 million customers each year.
Fnac is the leading retailer of cultural and technological products in most of the countries in which it has a presence.
In France, Fnac is the leading bookstore (500,000 references, 44 million units sold), and the largest music store (more than 300,000 CDs and videos in stock, 38 million units sold). It is also the leading retailer of personal computers and photography, camcorder, MP3 player, PDA and GPS products. Fnac Éveil & Jeux, a Fnac subsidiary, is market leader in games and toys for children of 12 or under.
2007 was a record year in terms of store openings, with 14 new stores compared to 7 on average in previous years.
This year, Fnac pursued the development of the Fnac Périphérie (stores in peri-urban areas) concept launched in 2006 to bring stores closer to customers and respond to new consumption patterns. This format has proved to be very effective and represents a major organic growth engine for the future. To meet changes in markets and consumer purchasing behaviour, Fnac strives for the constant improvement of its stores. In this regard, the project to adapt and rationalise its selling areas continued. This resulted in a multiplication of audio-video surface areas for technical products in general and TV and Video in particular.
Furthermore, to better respond to the growing customer need for information due to the increasing complexity of technological products, Fnac developed its range of home assistance services proposing home installation, training, guidance, assistance and repair services to customers.
In 2007, e-commerce represented a sharp 435 million increase in business volume for Fnac. With over a million product references, Fnac.com is the only website offering cultural and technological products, ticketing and travel-related products in addition to music, videos, software and games downloads. Fnac.com is France’s best example of the "click and brick" concept, whereby Internet sales complement the Fnac stores. Fnac’s customers can therefore order from stores at Fnac.com books and publications that are not available at sales outlets for delivery to stores or at home and place orders for technical products on the website and collect them in the stores.
In 2007, Fnac also launched its community platform Fnaclive for cultural expression and meetings between enthusiasts.
International expansion is one of the key development strategy pillars adopted by Fnac, which opened 7 new stores outside France in 2007 and intends to continue this intensification in 2008. Activities outside France rose by 14.3% and represent 28.6% of Fnac revenue in 2007. All countries, with the exception of Greece which is a very recent location with one store at the end of 2007 and Italy which has resumed a development phase, are now profitable and some have reached extremely high levels.
Fnac aims to be even more oriented towards its customers, 86% of whom have declared that they were satisfied with the quality of service during their last visit to a Fnac store (Défi 2007 customer satisfaction survey). Furthermore, Fnac is pursuing its customer loyalty policy with its membership card. In all its countries, the membership programme is an essential foundation for customer relations and is constantly tailored to their changing needs. At the end of 2007, the company had 3 million members, who make store purchases approximately three times more often than other customers, in the 8 countries where Fnac is established.
In addition to its retail activities, Fnac has always defined itself as a key cultural and technological player, as well as a corporate citizen. In 2007, Fnac coordinated more than 7,200 cultural and technological events in store forums, where ideas are shared and discovered.
2007 is the fourth year of double-digit growth in operating net income, which was achieved by the implementation of a corporate plan as from 2003 in 2 phases. The second phase entitled "100% customer", undertaken in 2006, aims to speed up the development of the company’s leadership by focusing on three strategic directions: pursuing strong and profitable growth, ensuring the company is customer-driven, and releasing the talents and energies of employees.
The year 2008 promises to generate new growth for Fnac, which will continue to expand its store network with the opening of 3 to 4 new stores in peri-urban areas and around ten stores outside France (3 in Spain, 3 in Portugal, 1 in Belgium, 1 in German-speaking Switzerland, 1 in Brazil, 1 in Greece and probably 2 in Italy). Home service offers will also be enhanced, while the complementarities between stores and the Internet will continue to be developed.
Fnac key figures
- 4,584 € million in revenue in 2007
- 199 € million in recurring operating income in 2007
- 19,366 employees at the end of 2007
- 130 directly-operated stores at the end of 2007
(excl. Fnac Éveil & Jeux) and 1 joint venture in Greece
- Active in eight countries : France, Belgium, Brazil, Spain, Italy, Portugal, Greece and Switzerland
BREAKDOWN OF 2007 REVENUE BY PRODUCT CATEGORY
BREAKDOWN OF 2007 REVENUE BY GEOGRAPHICAL AREA (1)
