Elektra reduces its contact points by 9% in 2020
Grupo Elektra reported that it currently has 6,601 points of contact, a decrease of 9% compared to those it operated at the end of 2019.
The decrease results from the closure of 397 points of contact for Purpose Financial in the United States -in the context of strategies aimed at boosting online credit operations and strengthening the operational efficiency of the company-, as well as the closure of 274 points of contact in Latin America derived, to a large extent, from the sale of Banco Azteca del Peru.
Meanwhile, in Mexico, in the last 12 months, 37 new Elektra stores were opened in strategic points, with greater surface area, which increase the offer of products and services, and maximize the customer’s shopping experience.
Elektra’s number of contact points in Mexico, at the end of 2020, was 4,803; 1,429 in the United States, and 369 in Central and South America.
The distribution network allows Elektra closeness to the customer and closeness in service.
It also provides the company with a superior market position in the countries in which it operates.
Elektra and sale of Banco Azteca del Peru
During the fourth quarter of 2020, the sale of all Banco Azteca del Peru shares to a group of Peruvian investors from the financial sector was announced.
The parties announced the implementation of an orderly transition process to ensure continuity of operations and security for their users.
At the time of the sale, Banco Azteca del Peru’s operations represented a non-material proportion in relation to all of Grupo Elektra’s financial business activities.
As a result of this operation, the company will concentrate its efforts in Mexico, the United States and Central America.
Finance
The consolidated income of the company in 2020 grew 5%, to 120,507 million pesos.
This was due to a 21% increase in sales from the commercial business and a 5% reduction in income from the financial business.
Finally, EBITDA was 9,812 million pesos, compared to 19,253 million the previous year.
The decrease is largely due to the reserve for credit risks made by Banco Azteca last March, for 100% of the loan amount of 7,243 million pesos from a borrower who initiated a bankruptcy process (Chapter 11) in the United States.
