ECONOMY

FNAC packing its bags after five years

French retailer FNAC will shut down its three-branch network in Greece after operating in the domestic market for five years. The company’s management is believed to have informed staff members of its decision to withdraw from Greece, which had been one of its strongest growing markets last year. Retailer Public is expected to take over two of the FNAC stores, those located at The Mall Athens in Maroussi and in the beachside area of Glyfada. Sources close to the deal said Public has not agreed to buy the two retail outlets but will take them over by the end of the summer after agreeing to acquire a large part of FNAC’s stock and equipment. Staff currently employed at the two stores will also hired by Public, sources added. FNAC’s third store in Monastiraki, launched in November last year at a cost of 3.5 million euros, is also likely to shut down soon. The French company has been operating in Greece via a joint venture with the Marinopoulos group. Changing economic conditions appear to have prompted the turnaround in strategy by the French company, which had described Greece as one of its strongest-performing markets regarding sales growth between January and August last year. CEO Christophe Cuvillier had said in November that FNAC planned to expand its branch network in Greece in the medium term to up to 12 stores with an investment of between 25 and 30 million euros.