Who is Grupo Carso?
Grupo Carso is a Mexican conglomerate led by Carlos Slim’s family. The company operates in various sectors, including construction, real estate, retail, and telecommunications. Sanborns is one of its well-known retail brands.
Why is Sanborns Relevant?
Sanborns is a prominent department store chain in Mexico, offering a wide range of products from fashion and accessories to electronics and home goods. Its reputation and customer base make it a significant part of Grupo Carso’s retail division.
Arturo Spínola García’s Role
Arturo Spínola García is the Director of Finance for Grupo Carso. His recent statements about Sanborns’ strategy have clarified the company’s intentions regarding its retail operations.
Sanborns’ Strategy: Focus on Rentabilidad
Denial of Sanborns’ Disappearance:
Arturo Spínola García, the Director of Finance at Grupo Carso, refuted rumors that Sanborns would disappear or be replaced by DAX stores. He emphasized that the company aims to strengthen Sanborns’ operations and increase the profitability of its spaces.
Optimizing Operations:
Spínola García acknowledged that some stores have been closed due to cannibalization among nearby locations. However, he clarified that this is not a strategy for Sanborns’ disappearance but rather an effort to optimize operations and better utilize sales floor space.
Store Closures and Reductions
- Sanborns reduced its sales area in Centro Insurgentes, Mexico City, between April and June, without specifying the square footage reduction.
- Sanborns Café closed its Antonio Caso location in Mexico City.
- Earlier in the year, Sanborns closed locations in Parque Vía shopping center and Tabasco, Colonia Roma.
DAX Stores: A Distinct Market
Different Markets:
Spínola García explained that Sanborns and DAX cater to different markets. DAX is a regional cosmetics and perfume retail chain present in northeastern Mexico cities, as well as Mexico City and the State of Mexico. Currently, DAX operates 46 stores.
Financial Performance
Margin Declines and Recovery:
Although Grupo Carso’s margins have slightly decreased due to increased labor costs, Spínola García reported that financial results show signs of recovery.
Recent Changes
- Sanborns reduced its sales space in Centro Insurgentes, Mexico City.
- Three Sanborns Café locations in Mexico City were closed.
Key Questions and Answers
- Is Grupo Carso planning to close Sanborns? No, according to Arturo Spínola García. The company aims to strengthen Sanborns and increase its profitability.
- Why are some Sanborns stores closing? Some locations have been closed due to cannibalization among nearby stores, optimizing operations, and better utilizing sales floor space.
- What is the relationship between Sanborns and DAX? Both brands cater to different markets. DAX is a regional cosmetics and perfume retail chain with 46 stores in Mexico.
- How are Sanborns’ financial results? Despite slight margin declines due to increased labor costs, Grupo Carso’s financial results show signs of recovery.
