Sanborns closes 12 stores after losing 196 million pesos in the first quarter of 2021

Photo: (El Universal)

MEXICO CITY, April 30, 2021, (EL UNIVERSAL).- At the end of the first quarter of 2021, Grupo Sanborns reported a loss of 196 million pesos in its net profit, with total sales of 10.5 billion pesos, a reduction of 6.6% compared to the same period in 2020.

In its financial report sent to the Mexican Stock Exchange (BMV) corresponding to the January-March period of this year, the firm, owned by Carlos Slim, reported the closure of 12 stores. For example, Sanborns closed the Mazatlán store in Sinaloa and the Guadalajara Centro store in Jalisco.

According to the firm, the drop in profit was the consequence of lower operating results derived from the restrictions to reduce infections by Covid-19.

In that sense, Sanborns recalled that in Mexico City and the State of Mexico, as of December 19, a red traffic light was again announced for all non-essential activities. In several states of the Mexican Republic, local authorities also implemented a reduction in operating hours and limited capacity.

“In the case of the State of Mexico, on February 1, 2021, restaurants, department stores, and shopping centers were able to open during the week and with 20% capacity, and in the case of Mexico City, the reopening was delayed until February 8, 2021, with a capacity of 20% for shopping centers and department stores with working hours from Tuesday to Sunday 24th, and extension of restaurant hours of operation until 9:00 p.m. with outdoor service. These measures once again impacted customer traffic in the metropolitan area, a region in which 42% of our physical points of sale are concentrated ”, the Sanborns statement explained.

The company explained that the drop in sales is explained by the total closure of department stores and restaurants from December to February due to the pandemic. 

“On the contrary, our essential iShop and self-service stores performed well. The categories that showed the best performance were technology and electronics, while the categories that reflected lower demand were large purchases and fashion. Customers remained cautious and the reduction in physical sales was offset by sales through e-commerce, which grew 3.5 times ”, according to the statement.

According to the statement made by the holding company, a recovery was observed in Sears, Sanborns and Mix Up as of March thanks to the reopening of stores and restaurants after the total closures in Mexico City and the State of Mexico.

The company detailed that the number of its own cards amounted to 4.49 million, increasing by 28 thousand new cardholders compared to 4.46 million plastics at the end of March 2020. 

“The percentage of the 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”, the statement concluded.