Copyright ® Grupo Famsa 2014
The long-term vision and commitment to a business model that has been successful over Grupo FAMSA’s 44 years of operations, combined with the efforts and professionalism of our great team of associates, drove our operations in Mexico during 2014. As a result, as of the close of 2014, the number of points of sale and square meters of floor space had expanded and the negative sales trend was reversed during the second half of the year.
During 2014, we opened eight new stores, significantly reinforcing our operations as a platform for value creation. In line with our objective of supporting the economic wellbeing of the Mexican people by giving them access to first-class financial goods and services, we opened new stores in Córdoba, Veracruz; Cuautitlán and Huehuetoca, State of Mexico; Matehuala, San Luis Potosí; Montemorelos, Nuevo León; Tepic, Nayarit; and Uriangato, Guanajuato, growing our sales floor area from 430,174 square meters at yearend 2013 to 439,026 square meters as of December 31, 2014, an increase of 2.1%. As of December 31, 2014, we had a total of 370 stores across Mexico.
In 2014, we implemented a series of strategies to make our products more accessible and attractive to our customers, including promotional campaigns targeting specific and seasonal products. During the year, sales volumes of the categories of Cellular Telephones, Home Appliances and Motorcycles rose by 11.2%, 4.5% and 3.1% respectively compared to 2013.
We also continued with our traditional sales on Mother’s Day, Father’s Day, Buen Fin weekend (equivalent to the Black Friday weekend in the United States) and the December winter holiday period, among others, where we offered customers discounts of up to 50% in diverse categories and promotions of monthly installments without interest for FAMSA credit card holders, to drive product demand.
More specifically, the discounts and promotions offered to consumers during the Buen Fin weekend increased consumption of durable goods and fulfilled the promise we made to our customers to offer prices below those in the United States. During this period, Furniture sales grew 10.0%, compared to the Buen Fin weekend of 2013.
In response to changing consumer spending activities and our customers’ needs, we continued to work on our on-line store Famsa.com, replicating the offers in our physical stores on the website and introducing value added services such as the Pay on Delivery service that allows our customers to pay cash or by credit or debit card for their purchases on Famsa.com when they receive their orders at home.
This innovative channel has been a watershed in the retail sector in Mexico, offering characteristics that had never been seen with on-line sales in the country. These include Visor 360°, which allows consumers to see the products they want from all angles; our advanced tire search option that uses a database to help customers identify the ideal tire for their car; and the space replicator, which allows users to change the physical setup of a given space and add diverse products, helping them perceive how new merchandise would look in their home.
As a result of the commercial initiatives implemented during the year, combined with the roll out of specific strategies to drive credit sales at all locations and the support of our credit arm, Banco FAMSA, sales volumes rose in the third and fourth quarters of 2014, reversing the negative trend of the first half of the year.
In this context, FAMSA Mexico’s 2014 Net Sales totaled Ps$13,008 million, 2.2% below 2013, while Same Store Sales (SSS) declined 2.5% during the year.
In 2015, the solid commitment of our team of associates and our company’s leadership will help us leverage the strengths we developed in 2014 despite the pressures of the unfavorable economic environment during the year. We will continue with our growth and development plans, benefitting, as we always have, the wellbeing of Mexican families.