Fnac Darty announces its strategic plan: Confiance +
GlobeNewswire
Fnac Darty announces its strategic plan: Confiance +
The Group`s objectives in the mid-term are faster growth than its markets and an operating margin of 4.5% to 5%
Fnac Darty announces its new strategic plan "Confiance +". This first Fnac Darty plan is built on the strengths of both banners and the good progress of the integration. In addition to the €130m synergy plan, to be delivered by end 2018, the new Group`s goal is to create Europe`s benchmark omnichannel services platform. Fnac Darty`s mid-term objectives are faster growth than its markets[1] and an operating margin of 4.5% to 5%[2].
Enrique Martinez, Chief Executive Officer of Fnac Darty, declared about Confiance +:
"Since 2010, Fnac and Darty have been able to anticipate the advent of omnichannel and have successfully implemented the necessary changes in their business models. The rapid progress made in the integration of Fnac and Darty now allows the new Group to present a strong forward-looking vision through Confiance +. Confiance + will usher Fnac Darty into a new era, the era of services platforms. In a world where digital is everywhere and where human contact is becoming a luxury, our plan will also rely on the exceptional quality of our teams, in order to offer to our customers Europe`s best omnichannel experience, and establish the Group`s momentum over the long-term. Therefore, our objectives for the mid-term are faster growth than our markets and an operating margin of 4.5% to 5%."
Confiance + aims to make the Group a leader in the era of "Retail as a Service", a new challenge for retail operators, requiring innovative services to be offered throughout the purchasing experience. Implementation of the Fnac Darty platform is based on 2 pillars, an enriched Fnac Darty ecosystem and an open omnichannel platform.
1. Enriched ecosystem
The Group, which already has a relevant and competitive range of products, in line with the latest innovations, intends to develop its position as a specialist while relying on targeted diversification levers (kitchen, new categories mainly as part of the marketplace). Moreover, this product offering is complemented by the best offer of services in the market (including advice, financing, delivery and after-sales services). Finally, the Group`s customers will benefit from innovative subscription and loyalty programs. These will be backed by the Group`s services offering, will allow cross-benefits between banners, will be enhanced by customized offers, and be open to third-parties. By capitalizing on its two flagship brands, Fnac Darty will deploy an enriched ecosystem offering its customers the best value proposition.
2. An open omnichannel platform
With the aim of offering the Group`s customers and partners products and services that are accessible anywhere, in any format, and at any time, Fnac Darty intends to continue to extend its network of stores by stepping up the pace of its franchise development. The Group also intends to capitalize on the modernity and efficiency of its logistical assets by progressively opening them up to third parties. Lastly, Fnac Darty will be rolling out a "best in class" digital in-store experience, in order to better respond to consumers` evolving habits. The Group`s goal therefore is to offer the best omnichannel experience in its sector.
Confiance + is based on ambitious initiatives:
Gains in market share in the three major product categories, particularly white goods
Development of the omnichannel footprint supported by an investment plan dedicated to the digitalization of stores, e-commerce platforms and logistics assets
A multi-banner, multi-country marketplace whose business volume should triple compared to 2016
Over 200 new franchise stores opened
More than 100 new stores or corners dedicated to the Kitchen offering
A strengthened range of services based mainly on partnerships with sector leaders, like the Darty connected button in the Google Home ecosystem
Launch of "Smart Home": a support service operated by Darty for connected devices
Creation of an entity dedicated to a BtoB service offering
Enhancement of subscription programs (Fnac+ and Darty+)
As a result of these initiatives, the Group is positioning itself as a solid and profitable alternative to digital "pure players", and has ambitious medium-term financial objectives.
The mid-term objective of this strategic offensive is to achieve faster growth than the Group`s reference markets1.
Fnac Darty`s mid-term objective is also to achieve an operating margin of4.5% to 5%2, thanks to the deployment of synergies and internal performance plans.
The Group targets strong cash generation, and will maintain its controlled financial policy allowing both the necessary investments to strengthen the Group`s assets, as well as tactical acquisitions based on market opportunities.
The detailed presentation of the "Confiance+" as well as the replay of the conference will be available on the Group`s corporate website.
IMPORTANT NOTICE: By reading this release, you agree to be bound by the following limitations and qualifications: Certain information included in this release is not based on historical facts but on forward-looking statements. Such forward-looking statements speak only as of the date of this release and Fnac Darty expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this release to reflect any change in expectations or any change in events, conditions or circumstances (or otherwise) on which these forward-looking statements are based. Such forward looking statements are for illustrative purposes only. Investors are cautioned that forward-looking information and statements do not guarantee future performance and are subject to various known and unknown risks and uncertainties and other factors, many of which are difficult to predict and generally beyond the control of Fnac Darty, and could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking information and statements. These risks and uncertainties include those discussed or identified in Chapter 6 "Facteurs de Risques" of the Fnac Darty 2016 registration document which has been registered with the French Autorité des marchés financiers ("AMF") under n°R17-0387 on April 14th, 2017, and which is available in French and in English on the AMF`s website at www.amf-france.org and on Fnac Darty`s website at www.fnacdarty.com.
This material was prepared solely for informational purposes and does not constitute and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments in the United States of America or any other jurisdiction. Likewise it does not give and should not be treated as giving investment advice. It does not reflect in any way to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice.
This material is being furnished to you solely for your information, and it may not be reproduced, redistributed or published (whether internally or externally to your company), directly or indirectly, in whole or in part, to any other person. Failure to comply with these restrictions may result in the violation of legal restrictions in some jurisdictions.
The distribution of, or the access to, this release in certain jurisdictions may be subject to legal or regulatory restrictions. Accordingly, any persons coming into possession of this document is required to inform themselves about and to observe any such restrictions. Fnac Darty expressly disclaim any liability as to the violation of such restrictions by any person.
This release has also been issued in French. In the event of any difference or discrepancy between the two versions, the French version shall prevail.
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Fnac Darty via GlobeNewswire HUG#2153830
