The department store brand Fábricas de Francia is about to disappear after its owner, the Liverpool department store chain, decided to consolidate its operations under the Liverpool and Suburbia brands.
The decision follows Liverpool’s 15.7-billion-peso (US $837.8-million) acquisition of the Suburbia chain of stores from Walmart in April last year.
Yesterday, Liverpool announced that the 41 Fábricas de Francia stores will be converted either to Liverpool or Suburbia stores. The process will start later this year and will continue throughout 2019.
The mid to high-end retailer intends to “simplify supply channels and boost profitability . . .” said Carlos Hermosillo, an analyst at the financial services firm Actinver.
He said the Suburbia brand has greater loyalty and recognition than Fábricas de Francia.
The analyst said expectations were positive after the announcement, which “confirmed the final phase of the integration of Suburbia into the . . . Liverpool platform. It is yet uncertain if [the decision] will add profitability, but it is a fact that going from three to two brands will simplify the supply chain and marketing efforts.”
Source: El Financiero (sp)