FNAC changes their strategy: it will recover its emblematic Callao store in September of this year and plans Five days.
Why is it important. After playing fund in 2023 with its first losses since its arrival in Spain three decades ago, the French company of cultural and electronic distribution needs to demonstrate that it can prosper in a post-pondemic market where consumers have changed their purchase habits.
The pandemic hangover. The boom in the demand for electronic products during confinement triggered FNAC sales to 365 million in 2021, according to the figures declared by Guillem. The subsequent collapse was abrupt: in 2023 its income fell to 307 million, 16% less, going back to 2004 levels, as explained by the director.
The way to recovery. 2024 marks the start of the comeback with a modest growth of 2% in sales. “Finishing the year growing in sales and results is very good news,” says Guillén, who acknowledges that “three years experimenting with the store models to build the FNAC of the future.”
The commitment to origins. The new strategy combines tradition and modernity:
- Promote personalized advice, sign of historical identity of the brand.
- Rationalize the assortment in physical store: “We do not need to have everything exposed.”
- Maintain cultural strength: same spaces for books and music.
- Provide the tools personnel directly, eliminating queues.
The goal. FNAC will allocate 6 million euros to the renewal of Your flagship store in Callaowhich will go from 7,000 to 4,000 square meters, optimizing the space for 70% to be a commercial area. The Plan plans to update up to four establishments per year and open new from 2026.
The French has marked the 400 million billing by 2027 – it does not reach since 2012 – and expand her network of stores, pass the current 36 to 50. “The idea I have in the head is to reach 50. If we want to remain strong in Spain we have to continue growing,” explains Guillén.
Between the lines. The real challenge is not in turnover, but in profitability. FNAC seeks “more profitable” stores before larger, betting on operational efficiency and differential experience against digital competitors and large surfaces. The reduction of space in Callao without giving up its role as a cultural reference is an example of this new philosophy.
And now what? Callao’s reopening in September will be the first major test for this transformation plan. The success of FNAC will depend on its ability to execute that difficult balance between cultural tradition and commercial modernization. And of backdrop, an increasingly complex sector.
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