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Fnac () is a French multinational retail chain specializing in the sale of entertainment media and consumer electronics.

Fnac was founded by André Essel and Max Théret in 1954. Founded 1954, Fnac was a members-only discount buyers' club, offering sharp discounts on commercial and consumer products, based on the founders' socialist principles. By this time, the company had 580 employees.

The 1970s saw further expansion for Fnac, as the company began opening shops in the French provinces outside Paris and a third in the city itself that sold books, the newest addition to the product range. The founders of the company sold 40 percent of the company to insurance firm Union des Assurances de Paris (now Axa) to raise money to fund growth. In turn, the insurance firm sold 16 percent of its shares to investment bank Banque de Paris et des Pays Bas (later Banque Paribas) in 1972.

In 1974, the company began selling books at 80% of the recommended retail price, sparking protests from publishers, writers and independent booksellers alike, who could not benefit from the economies of scale. This prompted government action in 1982 with the so-called 'anti-Fnac' law, that was signed to limit discounts on books to a maximum of five percent. In 1975, videos were added to the product range. This store was converted to a computer products-only concept, called FNAC Micro, which proved more successful.

In 1993, the first Fnac store was opened in Madrid, Spain.

Despite some failures, the company revealed growing revenues though shrinking profits in the early 1990s, also attributed to the recession in the French economy. In 1991 the company recorded gross sales of FFr 7.4 billion, while profits fell approximately FFr 55 million, to FFr 159.5 million. The following year, despite a rise in revenues to FFr 8.9 billion, the company's net income dropped to FFr 31.9 million.

The falling profits for Fnac was a similar situation to the parent company, GMF whose share count totalled more than 80 percent. To raise more capital, GMF agreed to sell its shares of FNAC in July 1993 to Altus Finances, a subsidiary of government-owned Crédit Lyonnais, and Phenix, a property group owned by French waterworks company Compagnie Générale des Eaux, for FFr 2.4 billion. The deal came under scrutiny by the Commission des opérations de bourse (COB) though was allowed to proceed in September 1993. Crédit Lyonnais became the majority shareholder, with 64 percent of shares, while Générale des Eaux held 34 percent. The remaining two percent of shares continued to be publicly owned.

In 1994, Crédit Lyonnais announced it was going to sell its 64 percent share of the company as part of a FFr 20 billion asset-reduction plan. In July 1994, the Altus Finances subsidiary agreed to sell the majority stake in FNAC for FFr 1.9 billion to François Pinault, the largest shareholder in and architect of Pinault-Printemps-Redoute.

Since 1994, PPR or Pinault-Printemps-Redoute has been the majority shareholder of Fnac and the company was led by François-Henri Pinault, son of the parent company's head François Pinault. The new ownership saw the closure of the WMD and FNAC Music subsidiaries and instead concentrated on further expansion of its retail chain. In 1995, the company added its 45th French store, while a second Spanish store, in Barcelona was opened in 1996. In 1995, the Fnac store was closed in Berlin and the company instead continued its international expansion in Belgium, which were now becoming profitable.

In October 1996, the new parent company assumed full control of the Belgian affiliate and announced plans to double the number of stores in Belgium that began with the opening of a fifth store in 1997. In March 1996, François-Henri, was named chairman of Fnac and opened two stores in France. At this point, Fnac had revenues passing FFr 10 billion and net earnings of FFr 200 million.

In 2013, Kering (formerly PPR) spun off Fnac as an independent company.

In 2016, FNAC Darty formed.

In 2017, Fnac Darty launched into online advertising with the sale of its own web spaces to advertisers. In particular, the group set up a specialised department in January, headed by Arnauld de Saint Pastou. In May 2017, Fnac launched its own bank card, called Fnac Mastercard, in partnership with Crédit Agricole and Consumer Finance.

In July 2017, Enrique Martinez and Jacques Veyrat became the new bosses of Fnac and replaced Alexandre Bompard, who left for Carrefour. Veyrat, chairman of the investment company Impala, became chairman of the board of directors, while Martinez, who previously headed the Northern Europe region at Fnac Darty, was appointed CEO of the company.

In February 2018, the French Property and Casualty Insurance Company (Sfam) became the second largest shareholder in the Fnac Darty group.

In August 2018, the UFC-Que choisir announces filing a complaint for "deceptive marketing practices".

In June 2019, the company was fined 10 million euros for "deceptive marketing practices". Customers buying a phone in a FNAC store are indeed offered a refund offer of 30 euros, which leads them to leave their bank details to enjoy, signing unknowingly an insurance contract mixed documents. It then commits them for one year to pay 15.99 euros per month, with monthly payments then rising to 37.99 euros. Customers are often not aware of the situation until several months later.

In April 2020, following the outbreak of the COVID-19 pandemic, Fnac was the first large French company to tap a government-guaranteed loan (500 million euro).

In 2024, FNAC opens its first café at Gare du Nord.

Operations

As of October 2018, the company owns stores in France, Belgium, Portugal, Spain, and Switzerland, and franchises in Luxembourg, Morocco, Qatar, Ivory Coast, Cameroon, Senegal and the Republic of Congo.

Belgium

Fnac operates thirteen stores in Belgium, located in Aalst, Antwerp (two stores, including one in the outskirts of Wijnegem), Bruges, Brussels (three stores), Charleroi, Ghent, Hasselt, Leuven, Louvain-La-Neuve and Liège.

Brazil

At the height of its popularity in Brazil, there were twelve Fnac stores. In July 2017, all Fnac operations in Brazil were transferred to Livraria Cultura. In October 2018, all shops were closed and online operations ceased.

Italy

Fnac operated several stores in Italy since 2000 in cities like Bologna, Milan, and Rome. In 2014, they all closed and their ownership was transferred to Orlando Italy fund.

Luxembourg

Fnac operates as a franchise within the Grand Duchy of Luxembourg, its webstore operates through the Belgian platform.

Qatar

There are two FNAC stores in the capital Doha: one in Lagoona Mall, the other one in Doha Festival City.

Spain

thumb|130px|right|Fnac in [[Plaza de Callao, Madrid, Spain (formerly a Galerías Preciados department store until 1993)]]

There are 26 Fnac stores in Spain, including:

Plaza Callao (Madrid), L'illa (Barcelona), San Agustín (Valencia), Triangle (Barcelona), Coso (Zaragoza), Bulevar (Alicante), Parque Principado (Oviedo), Diagonal Mar (Barcelona), La Cañada (Marbella, Málaga), Plaza (Marbella, Málaga), Plaza Norte (San Sebastián de los Reyes, Madrid), ParqueSur (Leganés, Madrid), Donostia (San Sebastián), Nueva Condomina (Murcia), Bilbao (Bilbao), Praza de Lugo (Corunna), Centro Comercial Larios Centro (Málaga), Plaza Imperial (Zaragoza), Centro Comercial Rio Shopping (Valladolid) La Gavia (Madrid), Paseo de la Castellana (Madrid) and Centro Comercial La Morea (Pamplona). The headquarters is located in Pozuelo de Alarcón, Madrid.

Switzerland

As of 2018, there are six Fnac stores in Switzerland, two in Geneva, one in Lausanne, one in Fribourg, one in Conthey and one in Neuchâtel.

Tunisia

Fnac operates two stores in Tunisia. The first one opened in 2018 in Tunis, and the second in 2019 in Sousse.

Loyalty programme

Fnac operates a loyalty programme offering points that are awarded each time the card is presented at the till-point, for each euro spent. A membership fee applies. For every 4,000 points earned, a gift card worth €10 is issued to the card holder. As of 2008, the programme has 1.8 million members, with the loyalty card also serving as a credit card. As of 2008, there are two versions of the card, a one-year membership card or alternatively a three-year membership card. The membership card offers a 5% discount on hardware, books and various monthly offers.

Product range

Fnac stores stock a range of products from audio, books, CDs, computer software and hardware, DVDs, televisions and video games. The 6 story building was designed by Jean-Claude Besseau and has of space. The building is a part of the Ivry Port project.

Previously the company head office was located in Clichy-la-Garenne, Hauts-de-Seine. Around 2006 there were rumors stating that Fnac would move to Wissous. In 2008 the head office moved to Ivry-sur-Seine. The subsidiary Fnac.com moved from Aubervilliers to Ivry during the same year.

Culture

Fnac holds "forums" throughout the year, which are opportunities for customers to have dialogue with people such as Pedro Almodóvar, George Lucas, and David Cronenberg, discussions with authors including Paul Auster, Pierre Bourdieu, and Françoise Giroud in addition to concerts. Musicians playing in these concerts have included Yann Tiersen, Ben Harper, Keane and David Bowie.

Each year a "book fair" is held with discussions among writers, politicians and the public. Topics related to literature, culture, society and the sciences are discussed. Since 2001 the company has also annually presented an award, Le prix du roman Fnac, whose winners are chosen by a panel of booksellers and members. Dominique Mainard, Pierre Charras and Pierre Péju are among those who have won. These events are shown on the company website fnaclive.com (in French).

The company claims to be committed to defending the diversity of music. In February 2002, Fnac published with UPFI (Union des Producteurs Phonographiques Français Indépendants) "Manifeste pour la diversité musicale", as a prelude to a policy of favorable treatment for independent labels and their artists. Fnac publishes "Indétendances," a compilation of ten artists bimonthly published by independent labels, which it set aside part of its listening kiosks in stores to promote their work.

In the 1995 Spanish horror-comedy "El Día de la Bestia" (Eng. The Day of the Beast), the main character Ángel is caught trying to steal a book from the Fnac store in Callao Square in Madrid.

The story of the 2005 Spanish thriller Mar rojo, starring Maribel Verdú, begins with an armed robbery at a Fnac store in Barcelona.

Controversies

Conviction for Deceptive Commercial Practices

In February 2018, the French multi-risk insurance company SFAM (Société française d'assurances multirisques) became the second-largest shareholder in the retail group Fnac Darty. On 30 August 2018, the consumer advocacy group UFC-Que Choisir filed a complaint against SFAM, alleging deceptive commercial practices.

In June 2019, SFAM was fined €10 million by the French authorities for misleading business practices.

Customers who purchased smartphones at Fnac stores were reportedly offered a €30 reimbursement, which required them to provide their bank details. Unbeknownst to many, this process included signing up for an insurance contract, binding them to a subscription of €15.99 per month, which later increased to €37.99. Many customers only became aware of the charges several months later.

Following backlash on social media—including reminders that the retailer continued to offer more controversial items, such as books by naturopath Irène Grosjean and a reissue of Mein Kampf from a far-right publisher—Fnac reversed its decision the following day. The company stated that the game contained "nothing that would justify refusing to sell it."

Use of Algorithmic Video Surveillance

In July 2023, investigative outlet StreetPress reported that several retail chains, including Fnac, E.Leclerc, Carrefour, G20, Coopérative U, Biocoop, and Kiabi, had unlawfully deployed an AI-powered video surveillance system developed by the French company Veesion. The technology analyzes customer behavior to detect potential shoplifting.

According to StreetPress, this deployment violated the French law of 19 May 2023 related to the 2024 Olympic and Paralympic Games, which only authorizes algorithmic surveillance in spaces hosting events, their surroundings, or public transport.

On 21 June 2024, the Conseil d'État (France's highest administrative court) rejected Veesion's request to suspend CNIL's compliance order and dismissed its claim for €4,000 in court costs. The court ruled that the company's surveillance technology was not compliant with GDPR requirements regarding the detection of shoplifting.

References

  • French Fnac website
  • Belgian Fnac website
  • Brazilian Fnac website
  • Italian Fnac website
  • Portuguese Fnac website
  • Spanish Fnac website
  • Swiss Fnac website