Twelve Sanborns stores close due to losses of 196 million pesos in the first quarter of 2021

The chain confirmed the definitive closure of 12 stores, as a result of the closures in CDMX and EdoMex from December to February, which caused a 6.6% drop in its profits.

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April
27, 2021

3 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.


Grupo Sanborns , owned by businessman Carlos Slim , recorded losses of 196 million pesos in its net profit at the end of the 2021 quarter. As a result, the chain confirmed the closure of 12 of its stores , according to the financial report sent to the Mexican Stock Exchange. de Valores (BMV).

From January to March 2021, Sanborns reported total sales of 10,575 million pesos , 6.6% less compared to the same period in 2020. Likewise, it indicated that as of March, a recovery was observed in Sears , Sanborns and Mix Up , thanks to the reopening of shops and restaurants.

The firm indicates that the restrictions imposed since last December 19, when Mexico City and the State of Mexico entered a red light, caused a drastic drop in the utility of their premises.

“These measures again impacted customer traffic in the metropolitan area, a region in which 42% of our physical points of sale are concentrated , ” explained Grupo Sanborns , which now has 437 units, in contrast to the 449 it had in March 2020.

While the December-February closings impacted sales at its restaurants and department stores, other of its businesses did well. “On the contrary, our iShop and self-service stores considered essential performed well,” they indicated.

According to the report, the categories of technology and electronics showed the best performance, while the large purchases and fashion reflected lower demand were.

“Customers remained cautious and the reduction in physical sales was offset by sales through e-commerce , which grew 3.5 times,” the company explained.

As for its own credit cards , the company detailed that the number rose to 4.49 million, an increase of 28,000 new cardholders compared to March 2020.

“The percentage of overdue portfolio more than 90 days was 5.8% compared to 3.5% in the first quarter of 2020. The deterioration is partly explained by the impact on the economy of consumers due to the effects of quarantines” , concluded the signing of Carlos Slim.

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