Falabella rethinks its operations in Argentina 1:04
(CNN Spanish) -
The Chilean capital company Falabella announced in a statement that it is seeking "profitability options" for its operations in Argentina, which could include the entry of a "strategic partner."
Within this rethinking of its operations in Argentina, Falabella reported the closure of four of its stores in Buenos Aires in the coming months: two of the Sodimac brand and two of Falabella.
The impact of the coronavirus pandemic
The company assures that beyond the impact that the closure of shops in Argentina brought during the confinement, "the pandemic accelerated the process of digitization of retail and has affected its results."
MIRA: Falabella closes 4 stores and rethinks its operations in Argentina
For this reason, he says, he seeks to "adapt to this new trend and make the operation sustainable over time."
Falabella has 10 stores in Argentina and another nine, which belong to the same business group, bear the Sodimac seal.
It is one of the most important retail groups in Latin America and began its investments in Argentina during the 1990s.
The company reported that it launched a voluntary retirement plan and the possibility of relocating those who work in stores that are soon to close.
This program includes employees who work at the company headquarters.
Falabella's presence in Argentina
Falabella's operation is not limited to the scope of the City of Buenos Aires and the Province of Buenos Aires, but has a presence in the interior of the country, with premises located in Mendoza, Córdoba, San Juan and Rosario, about which it is not has yet reported if there will be closures.
Falabella's decision is part of the context of different companies that have rethought their operations in Argentina due to the crisis and other factors, seeking partners to support the business plan at the local level, transferring production lines to other countries or liquidations definitive.
Falabella