In early 2020, due to the uncertainties related to the trade war between the United States and China, Grupo Elektra decided to purchase additional inventories from suppliers in China in anticipation of further impacts from the trade war.
When the Covid-19 pandemic was declared, Grupo Elektra continued to buy extra inventory, reaching an inventory level similar to the levels normally achieved during its “Buen Fin” promotion, the season with the highest demand of the year (when sales in four days equal to the sales of a whole month).
As a result, according to the company itself, reported this Tuesday, during the first confinement in Mexico, Grupo Elektra had enough inventory to supply its stores while other retailers closed their stores or did not have enough inventories to meet the demand of their customers.
This allowed the conglomerate to increase sales during the first close of April 2020, in product lines such as motorcycles, computers, electronics and household appliances.
In addition, given the greater number of purchases it made, this parent company was able to negotiate longer payment terms with its suppliers.
During the “Good End” and the December Christmas season, Elektra has managed to maintain sufficient inventory in its stores to meet demand.
Grupo Elektra’s commercial business includes the financial results derived from the sale of products and services such as motorcycles, telephony, household appliances, household items, entertainment, consumer electronics, furniture, computers, electronic money transfers, extended warranties, airtime , among other services and products.
The commercial business operates mainly through two chain stores: Elektra in Mexico and Central and South America, which is owned and operated by NEM, and Salinas y Rocha in Mexico, which is owned by Grupo Elektra’s subsidiary, Salinas and Rocha SA de C.V. and is operated by her.
Grupo Elektra’s money transfer business is carried out through NEM.