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					The five values
of the Group
                                                  PINAULT-PRINTEMPS -REDOUTE                                                                                                  Becoming one of the
                                                                                                                                                                               leading Groups
Our reflection and actions are guided by five
                                                                                     today…                                                                                                   worldwide
fundamental behavioral values.
                                                                                                         4 business divisions
SEEING CLEARLY
Widening our field of vision. Anticipating
                                                                                                                                                         P     inault-Printemps-Redoute is a young Group, founded and
                                                                                                                                                                  controlled by François Pinault, which has achieved the
                                                                                                                                                                  position of European leader for specialized distribution,
changing markets in order to identify
tomorrow's competitors. Analysing our
                                                   More than                                                                                                      in less than a decade. It has the ambition of becoming
                                                                                                                                                                                one of the leaders worldwide in this field.
performances without complacency.                     110,000 employees                                                                                  Pinault-Printemps-Redoute is a multi-specialist Group without
Anticipating our customers' expectations.                                                                2000                                         equivalent, which has used leading companies and strong brands
Discussing calmly in order to find solutions.                                                                                                               to develop its activities around four major divisions that are
                                                                                                         Sales of                                          present in all sales formats of distribution and luxury goods.
SPEAKING HONESTLY
                                                                              A presence          over
Working as a team in a climate of confidence.
                                                                                                         24.8 billion euros                           Pinault-Printemps-Redoute is a Group in movement that has been
                                                                                                                                                                        built on the basis of several fundamental pillars:
Creating the conditions that will help
everybody to express themselves freely.
                                                                            55 countries on                                                                    A level of quality and customer service reliability
Defending one's ideas with strength and
conviction, with regard to both one's
                                                                               5 continents              64 e-commerce sites
                                                                                                                                                             that consists of meeting the specific needs of its 50 million
                                                                                                                                                                 customers, individual consumers and businesses alike,
                                                                                                                                                                              in over 55 countries throughout the world.
management and one's colleagues.
                                                                                                         throughout the world, with more                   Decentralized and shared expansion. Our management
TAKING AMBITION TO THE HIGHEST LEVEL
                                                                            Nearly   50 million          than 195 million euros                         concept has resulted in strong decentralization, in order to be as
                                                                                                                                                           close as possible to our customers. But our service activities
Fixing oneself objectives that are in principle
out of reach. Allowing oneself to dream.                                                                 Internet sales in 2000                       present such a high degree of unity that they enable us to develop
Thinking differently. Decompartmentalising.                             customers worldwide                                                            transversal cooperation, in order to provide a number of services
                                                                                                                                                                               that are shared by the Group as a whole.
Imagining new solutions. Looking for what is
effective and creative both inside and outside                                                                                                        The will to combine organic and external growth for each
                                                                                                                                                               company, with a constant objective of increasing
the Group. Having an entrepreneurial mind.
                                                                                                                                                        profitability. The Group’s strength is its solid base of internal
Taking calculated risks. Surrounding oneself                           Key figures                             Breakdown of 2000 sales
                                                                                                                                                                  growth. It also takes the measures to accompany its
with the best people.                                                                                                                                               expansion via selective and strategic acquisitions.
                                                                                                                      Luxury      Business
HAVING THE SENSE OF TIME                                                                                               Goods      to Business             An accelerated policy of internationalization with more
                                                                                                            Retail
Allying power and speed. Accelerating                                                                                 Division    Division               than 52% of sales outside France in 2001, and the ambition of
                                                                                                          Division
                                                    In billion euros          2000    1999    %                                                         reaching rapidly the objective of 60% for the Group as a whole,
decision making in order to remain the driving                                                             43.0 %      8.9 %      44.3 %
                                                                                                                                                                 thanks to its continued expansion in the USA and to the
force of innovation. Rethinking our concepts        Sales                     24.8    19.5   + 26.8
                                                                                                                                                        diversification of its presence in the various European countries.
in order to be able to renew them more
                                                    Operating Income          1.9     1.5    + 27.6                                                     A strong social ambition, because the success of the Group
rapidly. Anticipating new consumer trends in
                                                                                                                                                              depends on its ability to attract new men and women and
a constant search for differentiation.              Net Income                                                                                         mobilize them around mutual managerial values and approaches.
DOMINATING COMPLEXITY                               Group share before
Maintaining an obsession for taking action,         goodwill amortization     0.9     0.7    + 22.3                                                                                                  Serge Weinberg
despite the growing complexity of our                                                                                                                                              Chairman of the Management Board
environment and our businesses. Resisting           Cash Flow                 1.5     1.2    + 23.9                                  Credit and                        and CEO of the Pinault-Printemps-Redoute group
the temptation of perfectionism when this                                                                                        Financial Services
becomes paralysing. Doing things simply and                                                                     Internet         Division
clearly in order to encourage people to follow.                                                                   0.8 %          3.0 %
Pinault-Printemps-Redoute


       Four divisions,             one Group
                Four shared service centres
                                                                                                                                                      Business to Business
                                                                                                                                                                           Rexel •
                                                                                                                                                         Pinault Bois & Matériaux •
    Retail                                                                                                                                                               Guilbert •
                                                                                                                      Busin
    • Printemps, Printemps Bijoutier Joaillier, Printemps Design, Citadium                                                 es                                              CFAO •

    • Conforama,         Nuitéa, Emmezeta
                                                                                              il                             st                                                 2000 sales
    • Redcats: Brylane (USA), La Redoute, Empire (U.K.),
                                                                                             a                                                                             11 billion euros




                                                                                                                                          o
                                                                                         t
    Ellos (Scandinavia), specialized brands (Cyrillus, La Maison de Valérie,


                                                                                       Re




                                                                                                                                           Bu
    Movitex, Somewhere, VertBaudet)

    • Fnac, Fnac Service, Fnac Junior, Fnac Direct, Éveil & Jeux, Surcouf                                  Shared     service




                                                                                                                                             sin
    • Concept Boutiques : Orcanta-Lingerie,                                                                           centres:




                                                                                                                                                ess
    Made in Sport

    2000 sales                                                                                         • Customer     capital
    10.7 billion euros
                                                                                                               • E-   commerce
    Credit and
    Financial Services                                                                                     • Market   places                                    Luxury Goods
                                                                               Fin a




                                                                                                                                                ds
                                                                                                                                                                                      Gucci •
    • Finaref
                                                                                                                      logies
                                                                                        Cr




                                                                                                           • Techno                                               Yves Saint Laurent •
    • Facet




                                                                                                                                               oo
                                                                                                                                                                           Sergio Rossi •
                                                                                            ed




    • Finaref Vie
                                                                                 nc




                                                                                                 it                                                                           Boucheron •




                                                                                                                                          G
    • Finaref Risques Divers
                                                                                                      an                                  ry
                                                                                                                                                                            BÉDAT & C° •
                                                                                       ia




    • Finaref Benelux
                                                                                            Se             d                         xu
                                                                                                                                                                       Bottega Veneta •
                                                                                        l




    • Ellos Finans
                                                                                                 rvi                            Lu                                                   Sales*
    2000 sales
    741 million euros                                                                                  ces                                                                2.2 billion euros


                                                                                                                                                            * 2000 sales from November 1999

2                                                                                                                                                             to October 2000
                                                                                                                                                                                              3
                                                                                                                                                                                                     BE INNOVATIVE FOR THE CUSTOMER

        inault-Printemps-Redoute’s growth is based on a
    P   constant search for creativity and innovation, whether
    by devising original concepts, designing new marketing
    offers, or creating high added-value services.
    In pooling our skills and sharing know-how between our
    Group companies, we are inventing new marketing formats
    and capitalizing on the complementary features of our
    wide range of distribution methods.
    Our aim is to anticipate our customers’ needs and bring
    to them increasingly personalized and efficient services.                                                The new concept
                                                                                                                                                                                                     Front view of the Surcouf store
    That is what we mean by our customer capital.                                                            of the La Redoute stores




                     Im@gi n e, create                                                                                                        Rexel agency




                                                                                                                                                                                      ,
                                                                                                                                                                                                                 Our customers
                                                                                                                                                                                                              • Individual consumers
                                                                                                                                                                                                                 • Trade and small
                                                                                                                                                                                                                    businesses
                                                                                                                                                                                                            • Small and medium sized
                                                                                                                                                                                                                     companies
                                                                                                                                                                                                           • Major corporate accounts
                                                                                                                                                                                                          • Public sector organizations
                                                                 A Multi-specialist
                                                                 Group…
                                                                 With a complete range of products and
                                                                 activities, with well-known companies
                                                                 which all enjoy leadership positions
                                                                 and with the effective combination
                                                                                                                    develop
                                                                                                             …In all sales formats                           - Major stores and networks:               Sales formats differ from one Group
                                                                 of a number of sales formats,               Within the consumer base, the Group             Printemps, Citadium, Fnac,                 company to another, as well as within
                                                                 Pinault Printemps-Redoute is a multi-       services the complete range of age              Conforama;                                 the same company. The Group is now
                                                                 specialist Group. Its model is unique in    groups and business categories – from           - Small and medium-sized stores:           developing a multi-channel distribution
                                                                 Europe and a major asset for customer       Eveil et Jeux (specialist in the young          CFAO, Cyrillus, VertBaudet, Fnac           strategy which directly links home
                                                                 service.                                    children’s products) to the Daxon               services, Fnac Junior, Nuitéa,             shopping (catalogue, e-commerce and
                                                                                                             senior citizen catalogue, from                  Orcanta…                                   Minitel) with its stores, as is well
                                                                 Present in all of the                       Conforama’s low budget offer, to the            - Catalogues: Guilbert, La Redoute,        illustrated by Guilbert, Fnac and
                                                                 specialized distribution                    most selective brands of the Gucci-             Conforama…                                 La Redoute.
                                                                 channels…                                   centered Luxury Goods Division,                 - Call centers: La Redoute, Finaref;       This multi-channel distribution strategy
                                                                 Through its expertise in all of the         namely Gucci, Yves Saint Laurent,               - Professional agencies: Pinault Bois      makes it possible to capitalize on the
                                                                 specialist distribution channels (stores,   Boucheron, Sergio Rossi, BEDAT & C°             & Matériaux, Guilbert, Rexel;              reputation of a brand and reach
                                                                 professional networks, home shopping,       and Bottega Veneta.                             - International trade: CFAO’s              different types of customers. For
                                                                 international trade, and e-commerce),       One of the Group’s strengths is to              automobile franchises and                  example, nearly 70% of fnac.com’s
                                                                 the Group is in a position to develop       develop distribution models in all sales        pharmaceutical distribution;               websurfing customers never go into
                                                                 marketing policies that are adapted to      formats:                                        - E-commerce: guilweb.com, fnac.com,       the store because it is too far away.
4                                                                different customer segments.                                                                brylanehome.com, redoute.fr…                                                          5
                                                                                                                                                                                                                               BE INNOVATIVE FOR THE CUSTOMER

    Creating new                                                                                                                        One profession:
    concepts                                                                                                                            customer                                   Logistics/Distribution/
                                                                                                                                                                                   After-sales service:
    The Group continuously develops new
    concepts with high added-value.
                                                Through its subsidiary, Gardiner,
                                                European leader in the security market,
                                                                                                                                        service                                    the Redcats
                                                                                                                                                                                   and Conforama
    A powerful capacity for innovation          Rexel has created Citadel to specialize
                                                                                                                                        70% of French people make at least
    enables it to open up to new                in security products. This is another
                                                                                                                                        one purchase a year from one of the
    specialized distribution markets and
    rapidly gain a leadership position in its
                                                innovative concept. The Citadel
                                                product range encompasses access
                                                                                                                                        Pinault-Printemps-Redoute group retail
                                                                                                                                        companies.
                                                                                                                                                                                   models
    niche areas.                                control, anti-intrusion and video-
                                                                                                                                        Commitment to the customer is at the       In the area of packing and processing
    Orcanta-lingerie, a women’s lingerie        surveillance, and is aimed at making
                                                                                                                                        forefront of the Group’s strategic         parcels, returns management and
    chain, and Made in Sport, a chain for       security simpler for electricians.
                                                                                                                                        thinking, and consists of ensuring         home delivery, Redcats has
    sports fans, were launched in 1996          Creativity is also expressed through
                                                                                                                                        optimized individual solutions.            unparalleled know-how, particularly
    and 1998 respectively.                      loyalty development in new customer
                                                                                                                                        It relies on each team’s capacity to       with its Operational Centre France. This
    On January 1, 2000, Printemps Design        segments, particularly through
                                                                                          Cross-company cooperation is evident          innovate and establish concrete            expertise, so vital to all of the Group’s     Conforama has a reputation for
    launched a totally new concept              Redcats’ specialist catalogues, the
                                                                                          both in customer-focused projects and         actions. R&D is also now customer-         companies, can be put to their use,           excellence in after-sales service, and
    boutique at the heart of the Pompidou       Fnac Junior format or with Printemps’
                                                                                          through “inter-company Clubs”                 focused.                                   and is particularly important for home        every day nearly 900 of its staff members
    Center in Paris. This open boutique         MissCode which targets girls in the
                                                                                          dedicated to exchange of ideas on             The development of a one-to-one            shopping and e-commerce where                 are involved in this activity in France.
    without walls features long counters        10 to 15 year-old age group.
                                                                                          best practices and the development of         marketing program is aimed at                             efficiency depends on          Conforama is therefore piloting the
    displaying designer and fashion
                                                                                          inter-company synergies in the retail         optimizing our client capital.                            the quality and speed of       Group’s after-sales service program.
    products.
                                                                                          and professional sectors. No fewer            The goal is to switch from                                 order delivery.               By 2002 it will set up 11 national
                                                     “RELAIS COLIS”,
                                                  a new fnac.com service                  than 16 Clubs are already operational,        product-based marketing to                                                               platforms devoted to after-sales service
                                                    courtesy of Redcats                   covering property and general                 consumer-based marketing.                                                                for brown goods (sound and screen)
                                                      From March 2001,                    resources, media procurement,                 The challenge is to develop                                                              and white goods (washing machines,
                                                   fnac.com customers will                information technology, international         new services and new                                                                     stoves, refrigerators) distributed by
                                                    be able to receive their              mobility, marketing and logistics, etc.       product ranges with a greater                                                            its 200 stores, and also those of
                                                     parcels at one of the
                                                                                          One of Pinault-Printemps-Redoute’s            element of personalization in                                                            La Redoute and the 30 regional

                                                             3,000                        great strengths lies in its ability to pool
                                                                                          expertise and know-how so that its
                                                                                                                                        the relationship with the
                                                                                                                                        customer.
                                                                                                                                                                                                                                 Fnac stores. Altogether, a total of
                                                                                                                                                                                                                                 500,000 calls per annum will be
    Citadium, the great sports store                  pick-up points                      resources can be shared and costs             How can this be done?
                                                                                                                                                                                                 Nearly                          processed.
                                                                                          reduced. The end result is more               By pooling databases, made                                                               The aim is to reduce costs and response
                                                      in the Redcats
    Citadium, a trend-setting sports store,
    was opened by Printemps in
    November 2000, in the center of Paris
                                                         network
                                                                                          efficient customer service.                   possible through the new technologies
                                                                                                                                        that underpin all cross-company
                                                                                                                                                                                                   50                            times, and to improve service quality.
                                                                                                                                                                                                                                 This project is supported by a major
                                                                                                                                        cooperation.                                                                             training program involving 600 employees.
    adjacent to the Boulevard Haussmann.                                                                                                Kadéos, a company founded in 1999
                                                                                                                                                                                     million customers
    It is a veritable temple for
                                                Cross-                                                                                  to harmonize the gift voucher activities             worldwide
                                                                                                                                                                                         70% of French
    sports brands (250 brands in 7,000 m2),
    and sets the standard for a totally         company                                                                                 of the retail brands (Conforama, Fnac,
                                                                                                                                        Printemps and Redcats), has extended         people make at least one
                                                                                                                                                                                     purchase a year from one
    innovative concept in Europe, based         cooperation                                                                             its development via new offers for
                                                                                                                                                                                        of the retail Group
    on 3 values – authenticity, dream and                                                                                               Business to Business and Retail                     companies
    technical quality.                          Cross-company cooperation is rolled                                                     customers, particularly aimed at
    With Nuitéa, in 1999 Conforama              out by a special head office                                                            employee representative Councils and
    created the first and only specialist in    department and is a key element in the                                                  individual customers.
    bedroom design and decoration.              Group’s structure, generating value                                                                                                                                             The Fnac ticketing in Barcelona

    Nuitéa already has 5 stores and will        through the exchange of ideas and
6   open 80 within 3 years.                     expertise.                                Nuitéa, the new brand
                                                                                          created by Conforama
                                                                                                                                                                                                                                                                            7
                                                                                                                                                                                                                                    BE INNOVATIVE FOR THE CUSTOMER




    The supply chain:
    Pinault-Printemps-Redoute
    subscribes to
    GlobalNe≈tXchange
    The Group’s direct and indirect                                                                                                     e-commerce:
    purchasing worldwide represents
    around 75% of its total annual sales.                                                          Pinault Bois & Matériaux show-room   64 sites                                        Web, the place for all kinds
                                                                                                                                                                                                                                              PPR Interactive:
                                                                                                                                                                                        of games
    Purchasing is therefore vital to the                                                                                                worldwide                                       Eveil et Jeux, the children’s mail order
                                                                                                                                                                                                                                           the cornerstone of
    Group’s future. In order to reduce costs                                                                                                                                                                                            the Bricks and Clicks
                                                                                                                                                                                        specialist, has launched a new site for
    – particularly through on-line auctions –                                                                                                                                                                                                     strategy…
                                                Customer satisfaction                                                                   The Pinault-Printemps-Redoute group             curious kids who are eager to play.            As an e-commerce expert
    and optimize the supply-chain,
    Pinault-Printemps-Redoute has joined
                                                … to increase                                                                           was a pioneer in e-business, having             Currently a range of 1,500 educational            and service company,
                                                                                                                                                                                                                                             PPR Interactive is a
    the e-marketplace GlobalNetXchange          customer loyalty                                                                        opened its first internet trading sites
                                                                                                                                        as early as 1995. Now the Group has
                                                                                                                                                                                        toys and games is available to them
                                                                                                                                                                                        on-line. A simple user-friendly search                key element of the
    (GNX).
                                                                                                                                        64 sites in Europe and worldwide,               engine has been specially designed for
                                                                                                                                                                                                                                      Pinault-Printemps-Redoute
    The brainchild of the world’s major         Because commercial relations – before                                                                                                                                                             group in the
                                                                                                                                        24 of which are located in France and           children.
    distribution groups, this is a system       and after-sales – are so central to us,                                                                                                                                                     implementation of its
                                                                                                                                        40 abroad. All the Group companies,                                                           “Bricks and Clicks” strategy.
    that has totally transformed working        all the companies have set up indicators
                                                                                                                                        except for the Luxury Goods Division,           Alloweb: this is La Redoute                          It has two missions:
    methods and supply cycles.                  to measure quality of service and
                                                                                                                                        have developed internet sites for               redoute.fr was the first site to offer a       it is a division of expertise
    It enables the assessment of enhanced       understand how satisfaction impacts                                                                                                                                                          providing support to
                                                                                                                                        on-line sales.                                  “web call-center” service – an on-line
    sales forecasts, the adjustment stock       on customer loyalty.
                                                                                                                                                                                        call center called “Alloweb”.
                                                                                                                                                                                                                                           the Group companies
    levels, and the development of new          This in-house observatory for validating                                                                                                                                                  in the development of
                                                                                                                                        On-line…                                        La Redoute’s platform is now one at
                                                                                                                                                                                                                                         their e-commerce sites,
    products, as well as the offering of a      progress helps us see our customers
                                                                                                                                        Fnac’s virtual store                            the forefront of e-commerce in Europe.             and it is also a center
    dynamic management for on-line              as partners.
                                                                                                                                        On the fnac.com site, you can walk                                                               for pooling technologies
    suppliers catalogues.                       At Fnac, Conforama or Pinault Bois &
                                                                                                                                        around a Fnac store in 3D, select an            Guilweb, an already                                      Group-wide.
    By the last quarter of 2000, over 100       Matériaux, a visit from the mystery
                                                                                                                                        item or even have a direct conversation         profitable “business-model”                   Pinault-Printemps-Redoute
    on-line auctions had already been           customer –also known as the “quality
                                                                                           Fnac and Printemps share bridal registry     with the sales staff. Fnac continues to         guilweb.com is the first e-commerce            reported internet sales of
    held. Average gains of around 9.5%          client” in Fnac stores – who actually
    were achieved on purchases made by          tests services, is a good example of       In the same spirit, Finaref has carried
                                                                                                                                        innovate. The fnac.com site is one of
                                                                                                                                        the top French sites in terms of audience
                                                                                                                                                                                        site to be profitable.
                                                                                                                                                                                        It is designed for professional users
                                                                                                                                                                                                                                        195 million
    auction.                                    our determination to better meet           out studies of shopping and credit
                                                                                                                                        and sales. It offers access to over 1 million   and enables account companies to
                                                                                                                                                                                                                                                 euros
    GNX is currently operational in the         customer needs.                            behaviour by customer typology.
                                                                                                                                        book references, compact discs and              consult catalogues at their own specially       in 2000, 2/3 of which
    Retail division, and will eventually be                                                “Finatypes” enable consumers’ needs                                                                                                          were achieved outside
                                                                                                                                        video items, and as from this year offer        negotiated prices. This business model
    extended to all divisions.                                                             to be defined, so that the product
                                                                                                                                        more than 3,000 technical products.
                                                                                                                                                                                                                                              of France.
                                                                                                                                                                                        is now being implemented for the other
                                                                                           range can be continuously adapted
                                                                                                                                                                                        companies in the division.
                                                                                           to suit them.
                                                                                                                                        The European expansion of
                                                                                                                                        MobilePlanet                                    madeinsport.com:
                                                                                                                                        MobilePlanet, the American company              “the latest in sport”
                                                                                                                                        acquired in 1999 by PPR Interactive,            Made in Sport, the Group’s sportswear
                                                                                                                                        has launched its activities in Europe.          banner offering all of the latest sports
                                                                                                                                        Mobileplanet proposes mobile                    products, is now on-line. The French
                                                                                                                                        computing and wireless products for             magazine “L’Equipe” and TV channel
8                                                                                                                                       the business to business market.                TF1 are partners of madeinsport.com.                                           9
                                                                                                                                                                                    CONQUERING NEW TERRITORIES


     T      he Pinault-Printemps-Redoute group has made
            international business one of its major growth areas,
     and has made the world its territory of expression. The
                                                                                                                                International sales multiplied by nearly 4 in 5 years

     Group is present in more than 55 countries, and already
                                                                                                                                Nearly 50 million customers worldwide
     makes more than 52% its sales outside of France as
     compared to 28% five years ago.                                                                                            More than 3,000 outlets in over 55 countries

                                                                                                                                64 e-commerce sites throughout the world
     Our territory of expression

     Relying in experience that it has
     acquired and on the success of the
     brand names, the Group is continuing
     its international development in
     markets with strong potential. Europe
     remains a priority target for all Group
     companies, but it also serves as a
                                               The growth of the Group's distribution
                                               networks worldwide is achieved
                                               through acquisitions, and also by
                                               opening new stores. Experience has
                                               shown us that models developed in
                                               France using tried and tested concepts
                                               can be exported to other countries.
                                                                                             the world                                                                                            Rexel,
                                                                                                                                                                                         No. 1 worldwide for
                                                                                                                                                                                       distribution of electrical
                                                                                                                                                                                              equipment
     springboard for the Group to deploy its                                                                                                                                                 Conforama,
                                                                                                                                                                                            No. 2 worldwide for
     activities across all five continents.
                                                                                                                                                                                             home furnishings
                                                                                                                                                                                                  Gucci,
                                                                                                                               Europe sales                                                 No. 3 worldwide for
                                                                                                                                  22.5%                                                        luxury goods
                                                                                                                               France sales
                                                                                                                                  47.5%                                                         Redcats,
                  More than                                                                                                                                                                 No. 3 worldwide for
                                                                                                                                                                                             home shopping
           110,000                                                                             The Americas
                                                                                                   sales
                                                                                                  20.5%
                                                                                                                                                       Asia sales
                                                                                                                                                          3%
                                                                                                                                                                                                Guilbert,
                                                                                                                                                                                            No. 1 in Europe for
                                                                                                                                                                                            distribution of office
               employees                                                                                                                                                                           supplies
        in over 55 countries
       50% of the staff located                                                                                                Africa sales
                                                                                                                                                                                                                     52.5%*
            outside France                                                                                                          4%
                                                                                                                                                                                                         46.8%*


                                                                                                                                              Australasia sales                                44.2%
                                                                                                                                                   2.5%                             35.4%
                                                                                                                                                                            30.7%
                                                                                                                                                                     28%




                                                                                                                                                                    1995    1996    1997       1998       1999           2000
10                                                                                      Breakdown of 2000 sales by continent                                        Evolution of sales outside France                           11
                                                                                                                                                                                                * New accounting rules
                                                                                                                                                                                                                               CONQUERING NEW TERRITORIES

                                                                                                    Europe                                                                                        Asia                                  Australasia

               The Americas


                                                                                                                                                                                   Gucci, the most international brand in      Present in Australasia since 1998 and
                                                                                          Guilbert is number 1 in the United                                                       the Luxury Goods Division, makes            on the strength of its 258 outlets as at
                                                                                          Kingdom and France for distribution of      The company plans to expand in               nearly 22% of its sales in Japan and        the end of 2000, Rexel has confirmed
                                                                                          office supplies, and it has recently        Switzerland at the rate of one new           18% in the other Asian countries. In        its dynamism with a new store concept
                                                                                          acquired the European activities of         store a year until 2005. Geneva is           2000, 3 boutiques were opened in            developed in Australia, the Super Store,
                                                                                          Boise Cascade Office Products.              discovering Fnac. The company                Japan which counted a total of 36 by        with 600 square meters fully dedicated
                                                                                          The agreement is accompanied by a           opened its first store there at the end of   the end of the year. Gucci is also          to retail sales. Its success has led to
                                                                                          joint venture on a global scale that will   2000, in an historical registry building     present in 8 other Asian countries, with    the planned opening of several other
                                                                                          enable Guilbert and BCOP to                                                              a total of 39 stores.                       Super Stores before the end of 2001.
                                                                                                                                      located in the heart of the city.
                                                                                          accompany their customers in their                                                       Sergio Rossi, a specialist in luxury        Gucci is also present in Australia with
                                                                                                                                                                                   shoes for women, took back in direct        3 stores, in Sydney and Melbourne.
                                                                                          internationalization.                       Southern Europe                              management 9 boutiques in Japan in
     North America                                                                                                                    With the purchase of 60% of the capital
     Through the acquisition of                                                           Northern Europe                             of the Emmezeta group, No. 2 in Italy
                                                                                                                                                                                   2000.                                        Africa and French overseas
                                                                                                                                                                                   Yves Saint Laurent has signed an              departments and territories
     the US company Branch                                                                Guilbert is No. 2 in Germany through        for home appliances and furnishings,         agreement with its Japanese franchisee
     and the Canadian company                                                             its subsidiary Hutter.                      Conforama has made a spectacular             concerning the buyback of all rights to
     Westburne, Rexel, world                                                              With its subsidiary Gardiner, Rexel has     advance in the Italian peninsula and         the Japanese market, including 5 Yves
     leader for distribution of electrical                                                moved into first place for distribution     moved up to second place worldwide           Saint Laurent boutiques. The brand
     equipment, moved into third place                                                    of security equipment in Great Britain.     for home furnishings. The company            plans to open new directly operated
     in the USA and took a leading position                                               Boucheron, which became part                continues to expand its foothold in          boutiques, using its current
     in Canada.                                the French catalogue. The success of       of the Gucci Group in July 2000, is to      Portugal, where it had 3 stores as at        establishments. In August 2000, an
     The largest Gucci store in the world      its distribution was due to Brylane,       re-establish its presence in Great          the end of 2000. Fnac has gained a           Yves Saint Laurent boutique opened in
     has re-opened in New York, on Fifth       Redcats' American subsidiary and           Britain in the spring of 2001 by                                                         Singapore.
                                                                                                                                      foothold in the Italian “boot” by                                                          In addition to East Africa (Kenya, Tanzania,
     Avenue. North America is one of the       No. 3 for home shopping in the USA.        opening its first boutique in London.                                                    The Italian leather goods manufacturer
                                                                                                                                      opening its first store there in October                                                   Zambia) and the Pacific (New Caledonia),
     brand's preferred markets with 29                                                                                                                                             Bottega Veneta is to take over direct
                                                                                          Continuing its strategy of building up a    2000, in Milan. Between now and 2003,                                                      2000 has been the North African year
                                               South America                                                                                                                       management of the 19 Japanese stores
     stores.                                                                              multi-brand Group, Gucci has taken a        8 other store openings are planned in                                                      for CFAO. The leader for specialized
                                                                                                                                                                                   by mid-2001.
     Yves Saint Laurent presented a            It was in Sao Paulo, Brazil, in 1999,      controlling interest in the Swiss           Italy.                                       On the strength of the highly                 distribution in Africa and the French
     prototype of a new store concept in       that Fnac opened its first store outside   watchmaker BÉDAT & C° whose
                                                                                                                                                                                   encouraging results from the first store,     overseas departments and territories,
     Las Vegas in December 2000.               Europe. Two new stores will open in        watches were launched on the                Eastern Europe                               opened in Taipei at the end of 1999,          CFAO has extended its motor vehicle
     A new name in the Gucci group's           Brazil in 2001.                            American market in 1997 and have            In January 2001, Conforama opened            Conforama inaugurated a second                distribution activity into Algeria, via
     collection of prestige brands, Bottega    With 30% of the market for distribution    enjoyed phenomenal success ever             its first store in Poland, in Warsaw,        store in the suburbs of the Taiwanese         Diamal. At the same time, and also in
     Veneta already has a strong presence      of electrical equipment, Rexel is the      since. Conforama is intensifying its        where 2 more openings are planned by         capital in May 2000. Conforama is             the automobile sector, CFAO has
     in the USA with 12 directly operated      leader in Chile where it acquired three    policy of expansion in Switzerland          2002. In accordance with its global          aiming at an eventual total of 20 stores      strengthened its presence in Morocco
     stores.                                   companies in the sector at the end of      where its seventh store was opened in       strategy of conquering markets with          in Taiwan.                                    by creating Intermotors. Eurapharma
     La Redoute is popular with American       1999. The Group also established           October 2000, in Pratteln, near Basel.      strong growth potential, Rexel is            Fnac, which arrived in Taipei at the
                                                                                                                                                                                                                                 established its presence in Egypt by
     women which made its experimental         operations in Argentina in 2000.                                                                                                    same time as Conforama, is also to
                                                                                                                                      expanding in Eastern Europe where it is                                                    setting up the Ibn Sina Laborex joint
     distribution of the catalogue                                                                                                                                                 open a second store in Taiwan, in 2001.
                                                                                                                                      already established in Croatia, Hungary,                                                   venture for pharmaceutical distribution.
     “La Différence”, a shortened version of                                                                                          Poland, the Czech Republic, Slovakia

12                                                                                                                                    and Slovenia.
                                                                                                                                                                                                                                                                           13
                                                                                                                                                                                                                              SHARE KNOW-HOW

         he talent, abilities, and quality of its employees and
     T   managers are essential factors in the Group’s progress.
     Pinault-Printemps-Redoute places the challenge of human
     resources at the heart of its thinking and actions.                                                                  In 2000:
                                                                                                               • Over 110,000 employees
     Our goal is that this challenge be present within everyday
                                                                                                                        in the world                       Learning,
     managerial behaviour, at every level. We want to ensure
     that everyone can express themselves as fully as possible
     in their profession. Attuned to the realities of the field,
                                                                                                                • A net total of more than
                                                                                                               1,500 jobs created in France
                                                                                                                   • 1,400 employees
                                                                                                                                                           evolving
     Pinault-Printemps-Redoute’s human resources policies                                                           switched positions
                                                                                                                                                           Jobs evolve continuously. They demand         And the “assistance and support
     are specifically defined for each Group company, in                                                         • 350 recent graduates
                                                                                                                                                           ever-greater technical skill, inventiveness   specialists”, like the dispatchers at
     accordance with their specific strategy and culture.                                                                were hired
                                                                                                                  • 30 student fairs and                   and professionalism. Beyond the variety       Printemps, accountants at La Redoute,
     This approach, which is decentralized yet thoroughly
     coordinated, reflects the very essence of the Group’s                                                      similar recruitment venues                 of products that the Group distributes        or customer service technicians in
                                                                                                                                                           through its network, there are business       Conforama stores, all help to ensure
     operating principles.
                                                                                                                                                           activities that are shared by all the         smooth sales activities by dealing with
                                                                                                               Programs for recent
                                                                                                                                                           companies dealing with Customer               all the upstream aspects.

 Women-men,                                                                                                    graduates
                                                                                                               In order to further its ambitions to its
                                                                                                               highest level, Pinault-Printemps-Redoute
                                                                                                                                                           Services. The “customer
                                                                                                                                                           contact specialists”,
                                                                                                                                                           such as Finaref advisers,
                                                                                                               strives to attract the very best young
                                                                                                                                                           Guilbert representatives,



                                                       foremost
                                                                                                               employees. During 2000, our recruitment
                                                                                                                                                           expert “books” salespersons
                                                                                                               policy, which is based on close
                                                                                                                                                           at Fnac, and even the
                                                                                                               relations with professional schools and
                                                                                                                                                           head of the lingerie
                                                                                                               universities, enabled us to recruit over
                                                                                                                                                           department at Printemps,
                                                                                                               350 recent graduates Group-wide.
                                                                                                                                                           are all responsible for


                                                                   Integrating
                                                                   Agora
                                                                   The sense of belonging is an important
                                                                                                               in our thinking
                                                                   means of promoting rapid integration        As well as its active presence at various   welcoming and advising customers, as          Training is therefore vital. Career
                                                                   and success for new employees.              student fairs and similar recruitment       well as encouraging customer loyalty.         development is becoming increasingly
                                                                   Four times a year, the 900 managers         venues, the Group has also been the         The “logistics and transport”                 individualized – Finaref and Conforama
                                                                   who join the Group annually worldwide       official partner of the Course Croisière    specialists, from the warehousemen            run training programs for recent
                                                                   are welcomed at Agora days.                 EDHEC yacht race for the last 4 years.      and forklift operators at PBM depots to       graduates, Rexel has sales training
                                                                   In addition to learning about the Group,    In 2001 this will feature a Pinault-        Rexel agency managers, guarantee              schools and PBM provides core skills
                                                                   the aim is to give them a clear vision of   Printemps-Redoute flotilla combining        that products are available for internal      programs, while Guilbert UK’s intensive
                                                                   Pinault-Printemps-Redoute’s strategy        the Fnac, Conforama, Rexel, Guilbert,       and external customers, and optimize          program trains its new recruits for
                                                                   and its managerial values, helping them     CFAO, Finaref and PPR Interactive           costs, delivery times and quality.            6 months after they are hired...
                                                                   to reflect on their own management          banners.                                                                                  To create pathways from one business
                                                                   style and their capacity to share, foster   Finally, the Group is a partner of the                                                    to another, to capitalize on know-how
                                                                   and create a stimulating team dynamics.     “Jobs Train” operation launched by the                                                    and transfer them, and to encourage
                                                                   Printemps, Redcats, and Rexel have          French newspaper Le Monde.                                                                cross-company careers, Pinault-
                                                                   already launched their own orientation      This is a truly mobile forum uniting over                                                 Printemps-Redoute is developing a
                                                                   programs, soon to be followed               30 partner companies as, from March 5                                                     unique inter-company mobility policy.
                                                                   by the other divisions of the               to 19, the train makes its way to meet                                                    Mobility is free, transparent and
                                                                   Pinault-Printemps-Redoute group.            students in eleven cities across France.                                                  encouraged.
14                                                                                                                                                         The Group is the official partner
                                                                                                                                                           of the Course Croisière EDHEC yacht race
                                                                                                                                                                                                                                                   15
                                                                                                                                                                                                                                                       SHARE KNOW-HOW




     An internal candidate can apply for a        The European Employee
     new post without having to refer            Committee was created at
                                                                                                                                       The plan was launched in 2000 in 15
                                                  the end of 2000. It draws
     directly to his line manager or HR
     department. Everyone needs to feel
     that they are genuinely driving their
                                                 together twenty members
                                                    from the 15 European
                                                                                                                                       countries, involving 75,000 employees
                                                                                                                                       and was a clear success. One in two
                                                                                                                                                                                          400              junior
                                                countries in which the Group                                                           eligible employees subscribed, a sign        managers from around
     own destiny. Everyone must have a                is established and                                                                                                           the world participated in
                                                                                                                                       of their sense of belonging to the
     project, validate it and share it. With                                                                                                                                      the first “Entre Nous 2000”
     this objective, the tools for internal
                                                   represents nearly                                                                   Pinault-Printemps-Redoute group and
                                                                                                                                                                                  day to get to know each
     mobility are available to all – through
     Moove, the monthly newsletter on
                                                       70,000
                                                        people.
                                                                                                                                       the confidence of the employees in our
                                                                                                                                       future.
                                                                                                                                       In 2001, the plan will be proposed again
                                                                                                                                                                                    other, reflect together
                                                                                                                                                                                  on cross-company projects
                                                                                                                                                                                   and enrich their internal
     mobility for managers and supervisors.                                                                                                                                                networking.
                                                                                                                                       on a wider scale, involving more than
     Since the beginning of 2000, Moove is         As an information forum,                                                            90,000 people (i.e. 90% of employees),
     also available on-line via Peppermint,       the EEC enables employee                 VIA or the effective                        in a greater number of countries.
     the Group’s intranet site where all              representatives and
                                                                                                                                                                                  The UniverCité offers three programs:           This course has been devised in
     Group offers are listed and constantly      employees generally to gain               sharing of                                                                             - Uknow, a mandatory program of 3               conjunction with an international
                                                 a better appreciation and
     updated. As a result of this new
     technology, the access to job openings
                                                    understanding of the
                                                 challenges facing the Group
                                                                                           success                                                                                thematic seminars of 4-day covering
                                                                                                                                                                                  Management, Finance and Marketing.
                                                                                                                                                                                                                                  teaching corps (e.g. Harvard and
                                                                                                                                                                                                                                  INSEAD). Through Unext, the Group is
     is done in real time internationally.             internationally.                                                                                                           - Umap, a series of annual conferences          creating a “breeding ground” for
                                                                                           Through VIA (Value In Action), the
                                                                                                                                                                                  providing reference points necessary to         managers who are destined to become
                                                                                           employee shareholding plan, the Group
                                                                                                                                                                                  the understanding of major global               the Group’s future leaders.
                                                conditions for expatriation are offered    gives everyone the chance to share
                                                                                                                                                                                  developments, our companies and                 Finally, Unet is the knowledge and
     Another initiative is the brochure         across all the companies. “Departure       in the Group’s success and the fruits of
                                                                                                                                                                                  businesses, whether across the “new             information base on the Group’s
     “Pro/positions” which is designed to       for international destinations” is         its growth. VIA unifies all of the
                                                                                                                                                                                  world map”, the “new millennium map”            Intranet. Its objectives are to
     open up the Group dimension by             intended for members of staff and their    companies of the Group. The principle
                                                                                                                                                                                  or the “new values map”.                        disseminate information and
     promoting inter-company transfers for      families; they also benefit from a full    is to directly include the staff with the
     employees.
     In 2000, over 1,400 employees
                                                range of support– both before they
                                                leave (language training and cultural
                                                                                           Group’s expansion and the
                                                                                           performance of the Group on the stock
                                                                                                                                       UniverCité                                 - Unext (university for the next generation),
                                                                                                                                                                                  a specific leadership-development
                                                                                                                                                                                                                                  understanding, and establish a
                                                                                                                                                                                                                                  knowledge center for managers.

     switched positions in the Group.           preparation, setting up home assistance)   market, by offering them the
                                                                                                                                           the Group                              program for high potential managers,            In 2000, 700 executive managers

     International mobility, whether in the
     context of acquisitions or setting up
                                                and on their return (career management).
                                                Currently, Pinault-Printemps-Redoute
                                                                                           opportunity to purchase Pinault-
                                                                                           Printemps-Redoute shares on
                                                                                                                                       studying                                   bringing together Group Executive
                                                                                                                                                                                  Committee tasks, personal development
                                                                                                                                                                                                                                  followed UniverCité programs and over
                                                                                                                                                                                                                                  38 seminars were organized.
                                                                                                                                                                                  and knowledge acquisition.
     Group company operations in new            has 250 managers working outside           advantageous terms.
                                                                                                                                       Created in 1998, Pinault-Printemps-
     countries, is a way to accelerate career   their native country.
                                                                                                                                       Redoute’s UniverCité is designed to
     paths and offers employees new
                                                                                                                                       support executive managers in their
     professional horizons. It is part of a
                                                                                                                                       strategic thinking and personal
     qualitative policy that enables staff
                                                                                                                                       leadership development. It is an
     members and their families to be
                                                                                                                                       exceptional forum for sharing
     accompanied throughout their new
                                                                                                                                       knowledge and networking, where
     professional adventure. A practical
                                                                                                                                       participants can observe and analyse
     guide manual has been published for
                                                                                                                                       the major changes in our environment,
     all heads of Human Resources
                                                                                                                                       discover and open new avenues for
     departments so that the same
                                                                                                                                       investigation, and prepare themselves
                                                                                                                                       for tomorrow’s challenges.

16                                                                                                                                                                                                                                                                        17
                                                                                                                                                                                                    SHARING VALUES

            he Pinault-Printemps-Redoute group, present                           Movitex makes contributions to senior        districts. For example, in Roubaix, in
        T   in over 55 countries, is conscious of its
        responsibilities towards the community and
                                                                                  citizen’s homes and associations in the
                                                                                  North of France. In the USA, Brylane
                                                                                                                               France, the company has provided
                                                                                                                               school support and help for
                                                                                  supports a large number of local projects,   associations in the disadvantaged Alma
        intends to fulfill its obligations as a good                              organized by associations that are           district for the last twelve years.
        corporate citizen to the fullest. Many charitable                         members of the United Way network.           Fnac is a partner of Ares, the
        actions are thus undertaken by Group companies.                           Moreover, all financial contributions        Association for Economic and Social
        Social, humanitarian, and cultural programs, as                           made by staff members are automatically      Reintegration, which helps the
        well as those concerning environmental                                    doubled by matching grants from the          homeless and those in difficulty to
                                                                                  company. In the United Kingdom,              reintegrate in the working world.
        protection, are supported and set up at the
                                                                                  Empire helps numerous local                  Fnac has subcontracted the reception,
        Group's initiative in France and abroad.                                                                                                                           La Redoute is involved in educational support
                                                                                  associations and schools via its Trust       organization into lots and cleaning of
                                                                                  Charity Committee.                           containers to marginalized people           of schooling for children and teenagers
                                                                                  La Redoute is present in inner cities        seeking to reenter the job market.          whose studies have been interrupted or




     Solidarity,
                                                                                  and is closely involved in local             To mark the 30th anniversary of             upset by illness or accident.
                                                                                  development at all levels. With              Finaref, company staff decided to help      In a project to help disabled people,
                                                                                  educational support, help for                the “School in Hospital” association.       and in partnership with AFEJI, Finaref
                                                                                  associations, and contributions to           Their donation enabled the association      plans to set up a workshop providing
                                                                                  reintegration, the mail order company        to finance a promotion campaign to          debt recovery services, leading to the
                                                                                  provides its know-how and resources          obtain grants and encourage volunteer       progressive integration into the
                                                                                  to support development in various            help. “School in Hospital” takes charge     company of the staff thus trained.
        Solidarity
        in action
                                                                                  commitment,
                                                          Going beyond its
                                                        economic vocation,
                                                        Pinault-Printemps-
        Humanitarian undertakings are a real
                                                      Redoute makes sure its
        part of corporate culture for the
                                                     actions are based on the
        Redcats group. Cyrillus is a partner of
                                                        respect of a certain
        the French Red Cross, Restos du Cœur



                                                                                                                           responsibility
                                                       number of values and
        (free meals, clothing and support for
                                                       principles. As early as
        the homeless) and Petits Frères des
                                                    1996, the Group drew up
        Pauvres (help for the poor). Since 1986,
                                                        a chart of ethics, to
         VertBaudet has supported Noël des
                                                      ensure integrity, loyalty
          Déshérités (Christmas for those
                                                         and transparency
          forgotten) that provides help for
                                                      towards its customers,      Outside of
              families in distress, together with
                                                      staff, shareholders and
                   families faced with major
                     difficulties. Last year,
                                                    partners. It was drawn up
                                                      in consultation with all
                                                                                  France
                     VertBaudet organized a
                                                      the companies to take
                    collection among its staff                                    To support the Reporters sans Frontières     part in the “Tourism for development”
                                                    their specific aspects and
                      and the sum raised was                                      association and mark the tenth               operation, enabling humanitarian
                                                     needs into account, and
                       supplemented by a                                          international day for freedom of the         associations established in the
                                                      states the principles of
                       donation from the                                          press, Fnac participated in financing        countries the tourists visited to receive
                                                       economic, social and
                       General Management                                         the co-publishing of an album dedicated      a contribution from the partner travel
                                                     commercial ethics to be
                   and the Workers’ Council.                                      to the photographer Robert Doisneau.         agencies.
                                                          adhered to by all
                VertBaudet was also a partner                                     Through its travel subsidiary Fnac           This practical guide was distributed in
                                                        members of Pinault-
18      of the French Children's Foundation.
                                                    Printemps-Redoute staff.
                                                                                  voyage, the company played an active         all the Fnac stores.
                                                                                                                                                                                                                       19
                                                                                                                                                                                                                                                                  SHARING VALUES


           Under the Niceday
       distribution label, Guilbert                                                                                                          A Wall for Peace
            has launched an                                                                                                                  Pinault Bois & Matériaux and Fnac
      “environment” range made                                                                                                               were both partners in the “Wall for
       up of products complying                                                                                                              Peace” operation. Inspired by the
           with environmental                                                                                                                symbolic importance of the Wailing
       standards that are stricter                                                                                                           Wall, the “Wall for Peace” was built at
        than those of equivalent                People serving                                                                               the foot of the Eiffel Tower in Paris. It is
      products: all packaging for
        products in the range is                people                                                                                       more than 16 meters long, 14 meters
                                                                                                                                             wide and 9 meters high, and the word
      made from mainly recycled                                                                                                              “Peace” is written on it in 32 languages
                materials.                      In France, with the participation of                                                         and 13 different alphabets. PBM
                                                electrical contractors and builders, and                                                     supplied the wood for the floor under
     CFAO furthers initiatives to encourage     in collaboration with a subsidiary of the     card. In 2000, the challenge was taken         the structure. Fnac opened its Internet
                                                                                                                                                                                            A Wall for Peace, sponsored by Fnac and PBM
     the development of small and micro-        French electricity company EDF that is        up by the Gingerkidz association which         site to anyone who wanted to write
     organizations to generate income and       specialized in total recycling, Rexel has     specializes in extra help for schoolchildren   and send the messages of peace
     thereby help development in Africa, a      organized educational programs on the         and after-school support. A large              projected on the video screens
     continent with which CFAO is closely       proper disposal and recycling of              number of children took part, delighted        incorporated in the Wall.
     and historically linked. For example,      fluorescent tubes and lamps, dangerous        at the prospect of seeing their work
     CFAO has been a shareholder of             products for which recycling is obligatory.   printed in large quantity and sent all
     Afrique Initiatives since 1999, together   This operation has helped to inform           round the world. Together with stocks of
     with other major companies, and has a      users (local authorities, major retailers,    cards promoting the association,
                                                                                                                                                                                            Creating                                      organize a multi-disciplinary exhibition
     seat on its Management Board. CFAO         public sector administrations and             Gingerkidz and its winners received
     has also taken part in a project to        industry) of the dangers presented by         numerous gifts.                                                                               human                                         on "The Pop Years", a retrospective
     manufacture plant-based medicines in
     South Africa, Benin and Madagascar.
                                                waste and make them more aware of
                                                the need to respect the environment.
                                                                                              Since 1988, Fnac and the French
                                                                                              Ministry of Education have organized a
                                                                                                                                                                                            values                                        look at design during the period 1956
                                                                                                                                                                                                                                          to 1968 in the visual Arts, Film,
     CFAO has contributed to actions            Fnac has again taken up the struggle          “Prix Goncourt” literary prize for                                                                                                          Architecture and Design. This event will
     carried out by the “Private Undertaking    against intolerance and injustice. A          secondary school students.                                                                    Having been a partner of the “Picasso         be sponsored by Yves Saint Laurent
     in Africa” association since 2000, to      partnership has been set up with the          2000 students from France and other                                                           the Sculptor” exhibition, which was           and the Gucci Group.
     support the fight against Aids, in         FIDH (International Federation of             French-speaking countries, representing                                                       held in the Georges Pompidou Centre
     cooperation with the World Bank.           Human Rights Leagues). The first              about sixty establishments, take part in                                                      from June to September 2000 –
     In 2001, CFAO will be a partner of         action was to draw up a petition to           this literary marathon every year.                                                            “A significant artistic event that has
     Agrisud International, which is            defend five well-known persons who            They choose a winner from the list of                                                         contributed to broadening access to
     concentrating particularly on              are being persecuted in their country         10 books selected by the members of                                                           the Master's sculptural work, and
     agricultural projects and activities.      because of their commitment to defend         the Goncourt Academy.                                                                         revealed a Picasso who was little
                                                human rights. It received more than           As soon as the winner has been                                                                known” – in 2002, the Pinault-
     Redcats Nordic supports various local      8,000 signatures in three days.               chosen, the fnac.com site (keenly                                                             Printemps-Redoute group will
     associations providing help in Eastern     Every year, Redcats UK organizes the          involved throughout the operation,                                                            again be a partner in the exhibition          However, this is not a first for the
     Europe and Belarus.                        “Corporate Christmas Cards” program,          especially with discussion forums)                                                            held at the Georges Pompidou Centre           Gucci Group. In the course of the last
                                                a competition giving children from local      transmits the results live via France 3                                                       “The Surrealist Revolution”.                  two years, the brand has sponsored
                                                schools and associations linked to            TV cameras. The winner's book is                                                              Yves Saint Laurent, Gucci… and                the USA Pavilion at the Biennial Festival
                                                education the opportunity to draw the         immediately put on display in Fnac                                                            “Pop-Art”                                     of Venice, the “The Work of Charles
                                                picture for the company's greetings           bookshops.                                                                                    …a first in twenty years for the              and Ray Eames” exhibit at the London
                                                                                                                                                                                            “Pop-Art” movement in Europe.                 Museum of Design and, in the musical
                                                                                                                                                                                            From March 15 to June 18, 2001, the           arena, the tour of Japan made by the
20                                                                                                                                                                                          Georges Pompidou Center is to                 La Scala philharmonic orchestra of Milan.   21
     Retail
         he Retail Division is made up of leading
     T   companies that are well known in France
     and elsewhere in Europe. It includes most                 Leading department store company in      Leading retailer for household             Leader in Europe and number                Leading retailer of cultural and
                                                               Paris and the Paris region.              equipment in France and Europe,            3 worldwide for home shopping.             leisure products in France, Belgium,
     sales formats for specialized retailing to
                                                               Multispecialist retailer with an         and number 2 worldwide for home            Redcats - Red for Redoute and Cats         Spain and Portugal.
     individual customers: department stores                   international reputation, Printemps is   furnishings.                               for catalogues - a new name that           The written word, photography, video,
     with Printemps, home shopping with Redcats,               the reference for department stores in   A wide range of choices with the best      clearly states the international stature   hi-fi and all their associated technologies:
     specialized megastore retailing with                      France, that plays a major part in the   value for money, immediate availability,   of the Group, and brings together mail     Fnac, the leading retailer on most of its
     Conforama and Fnac, as well as e-commerce,                city and is a trendsetter.               an efficient and personalized customer     order brands that are all based on the     markets, has developped a unique
                                                                                                        service, flexible financing, etc.          same business of retailing households/     store format, based on actual and
     that provides new prospects for each of the               • 5,504 employees*
                                                                                                        For more than 30 years, Conforama          goods, home furnishings, leisure           virtual multi-specialist stores, places
     companies in the division.                                • 2000 sales of 850 million euros
                                                                                                        has been making comfort affordable         products and clothing. With its multi-     where you can find not only the products
                                                               • 35 stores worldwide
     The Retail Division offers a wide range of                                                         for all and adjusting its offer to         channel distribution network including     to buy, but also advice, discovery,
                                                               • 17 directly operated stores and
     consumer goods: clothing, home appliances                                                          consumer expectations.                     catalogues, specialized stores and         other afficionados and culture.
                                                                 9 affiliate stores in France and
     and furnishings, leisure goods and services.                                                                                                  e-commerce sites, Redcats is fast
                                                                 4 affiliates abroad                    • 9,430 employees*                                                                    • 14,636 employees*
                                                                                                                                                   establishing itself as a global
     The companies in the Retail Division                      • A total of 244,000 sq. m.              • 2000 sales of 2.1 billion euros                                                     • 2000 sales of 3 billion euros
                                                                                                                                                   powerhouse in home shopping
     constantly renew their customer offering                    of sales area                            (directly operated Conforama stores)                                                • 79 Fnac stores in 8 countries,
                                                                                                                                                   worldwide.
                                                               • 7,000 sq.m. dedicated to sports        • 201 Conforama stores worlwide, of                                                     including Italy and Switzerland
     by launching original                                                                                which 156 are directly operated
                                                                 with Citadium                                                                     • 23,508 employees*                          since the end of 2000
     concepts and innovative
     services. This enables
     them to anticipate cus-
                                             10.7              • 900,000 Printemps card holders
                                                               • 15,500 wedding present lists drawn
                                                                 up in 2000
                                                                                                        • 25 Conforama stores outside France
                                                                                                        • 16 Emmezeta stores, of which 15 are
                                                                                                          in Italy and 1 in Croatia
                                                                                                                                                   • 2000 sales of 4.7 billion euros
                                                                                                                                                   • 17 catalogues distributed in 18
                                                                                                                                                     countries
                                                                                                                                                                                              • 151 Fnac Service, 18 Fnac Junior
                                                                                                                                                                                                and the Surcouf store of Paris
                                                                                                                                                                                              • 350,000 book references, 220,000 for
     tomer needs and respond             billion euros     :                                            • 5 Nuitéa stores in the Paris region      • 60% of sales outside France                music, 32,000 for technical products
                                                                                                        • A total of 820,000 sq. m. of sales       • More than 100 stores worldwide           • More than 1 million references on
     to demand that is more and         the 2000 sales for                                                area for Conforama, Emmezeta and         • More than 40 e-commerce sites              fnac.com
     more exacting.                     the Retail Division                                               Nuitea stores                            • 85 million parcels delivered per year    • 183,000 sq. m. of sales area for the
                                                                                                        • 5,000 references on conforama.com        • More than 93 billion catalogue pages       Fnac stores
                                                                                                          by mid-2001
22                                                             * Staff on 31 December 2000
                                                                                                                                                     published every year
                                                                                                                                                                                                                                         23
     Growth and
     development
                                                            Setting                                                                       trends
     From their solid base in France, and       Fnac.com is now able to deliver the
     making the most of powerful tried          site’s 100,000 most popular products in
     and tested concepts, the companies         24 hours.                                                                                                                                                                              place worldwide for home furnishings.
     in the division continue to expand
     mainly through internal growth.
                                                                                                                                          At your service…                                                                             Poland, a new country for the company,
                                                                                                                                                                                                                                       saw the opening of the first store in
     They are leaders in France, opening                                                                                                  To keep up with customer expectations,                                      who go for       January 2001 in Warsaw.
     outlets at a steady pace and making        As a pioneer in the boutiques/home                                                        the Retail Division constantly enriches                                      the “young      Fnac is accelerating its growth outside
     their customer offering available in       shopping/e-commerce triad, Cyrillus is                                                    its product offering, invents new                                            habitat”        France, with the opening of six stores
     various formats.                           sporting a new logo with a younger                                                        concepts and creates new upmarket                                             style.         in 2000, notably in Italy and Switzerland,
     In 2000, Fnac acquired Surcouf, the        look, and is improving its distribution                                                   services every year.                                            The Boutique Blanche         where the company inaugurated its first
     Paris-based microcomputer specialist       strategy with a programme to “re-look”                                                    The success of the first Nuitéa store –      is still the jewel in the crown of Printemps’   stores in Milan and Geneva at the end
     it also opened 4 new Fnac stores in        its 54 outlets.                              Since September 2000, the offering of        the specialist in the area of bedroom        services, with 15,500 wedding lists             of the year. Nine openings are already
     France, and extended 2 existing stores.    For direct marketing, 4 catalogues will      the site laredoute.fr has been renewed       furnishing - which opened in October         opened in 2000 and boutiqueblanche.com,         scheduled outside France for 2001:
     The site conforama.com is increasingly     now be published every year.                 daily and up to 10% of the products          1999, has led to 4 new openings in 2000.     featuring an Internet site dedicated to         3 in Italy, 2 in Spain,
     a pre-selection tool for customers, and    A new logo, new colours and a new            are available exclusively on-line.           The company plans to open 20 new             young newlyweds.                                1 in Switzerland,
     in 2000 it doubled the number of its on-   advertising style: the new visual identity   Moreover, just as in a physical store, all   sites in 2001, and will soon expand                                                          2 in Brazil and
     line sale items to 3,000 by the end of
     the year. There will be 5,000 by the
                                                of Printemps launched in September
                                                2000 is a clear expression of the reality
                                                                                             of the products presented are really
                                                                                             available and can be delivered
                                                                                                                                          internationally.
                                                                                                                                          “Citadium”, a sports department store
                                                                                                                                                                                       Expanding                                       1 in Taiwan.

     second half of 2001.                       of the modernized stores.                    immediately.                                 at the crossroads of the latest trends,
                                                                                                                                                                                       our boundaries…                                 Redcats confirms
                                                                                                                                                                                                                                       again its international
                                                Already a pioneer on the web, the            Since October 2000, the bienjoué.com         opened its doors in Paris at the end of                                                      vocation through its
                                                                                                                                                                                       It is clear that the ambitions of the
                                                company set up in January 2001 an                                                                                                                                                                                Fnac store front in Geneva
                                                                                             site provides a single basket for the        2000 and innovated with a completely                                                         companies.
                                                                                                                                                                                       Retail Division now go beyond the
                                                on-line subsidiary printemps.com,            2,500 products in the 3 catalogues           new concept focused on brands. In                                                            Cyrillus, the brand for dapper and
                                                                                                                                                                                       borders of France, and the
                                                which incorporates all of the e-commerce     Graine d'Eveil, Eveil & Jeux and Bien        1999, Printemps had already launched                                                         classic clothing for the whole family,
                                                                                                                                                                                       companies are resolutely deploying
                                                activities of France Printemps –             Joué, specializing in developmental and      the “Printemps de l’Homme” store on                                                          plans to open new stores in Japan,
                                                                                                                                                                                       themselves internationally. In each
                                                webcamer.com, boutiqueblanche.com            clever games and toys for children.          Boulevard Haussmann, and Printemps                                                           where it is already established with
                                                                                                                                                                                       case, they adapt to suit local
                                                   and printemps.com.                        As proof of its success, Somewhere,          Design situated at the heart of the                                                          3 outlets in Tokyo. Japanese customers
                                                                                                                                                                                       consumer habits, while remaining
                                                                                             Redcats’casual and resolutely trendy         Georges Pompidou Center, in Paris.                                                           can also order on cyrillus.co.jp, the
                                                                                                                                                                                       faithful to the originality and
                                                                                                 brand, opened its 11th boutique in       With 2 million hits in December 2000                                                         Japanese version of the international
                                                        fnac.com, the leader in                                                                                                        efficiency of their concept.
                                                                                                 France at the end of 2000.               alone, fnac.com was able to attract                                                          site.
                                                       French language sites for                                                                                                       In 2000, Conforama strengthened its
                                                                                                                                          Christmas websurfers, especially                                                             Brylane Home, a subsidiary dedicated
                                                       entertainment and leisure                                                                                                       positions outside France by opening
                                                                                                                                          thanks to the "Christmas Guide" that                                                         to household products of the number 3
                                                          goods and services,                      Printemps’s WebcamerTM                                                              3 new stores, in Portugal, Switzerland
                                                                                                          in communication                provided customers with more than 600                                                        for home shopping in the USA, is
                                                           registered close to                                 with a client                                                           and Taiwan. But the major event of the
                                                                                                                                          gift ideas.                                                                                  launching a new “Art de vivre” concept
                                                            600,000
                                                             orders         in 2000
                                                                                                                                          To counter the blandness of habitually
                                                                                                                                          used communication means,
                                                                                                                                                                                       year came from Italy with the acquisition
                                                                                                                                                                                       of the Emmezeta group, number 2 in
                                                                                                                                                                                       Italy for household furnishing. This has
                                                                                                                                                                                                                                       that it will develop across a complete
                                                                                                                                                                                                                                       new product range. In Norway and
                                                                                                                                          Conforama is launching an annual                                                             Sweden, Enjoy – a subsidiary of the
                                                                                                                                                                                       propelled Conforama up to second
                                                                                                                                          furniture catalogue. With a circulation of                                                   number 1 Swedish mail order company
                                                                                                                                          10 million copies, the catalogue targets                                                     Ellos – provides websurfers who order
                                                                                                                                          a wider, more upmarket audience and                                                          via enjoyclub.com with 24 hour order
24                                                                                                                                        should attract young, urban dwellers                                                         delivery to their home.                       25
 Credit and Fina ncial Services

                                                                                                                                     A multi-channel customer                    coupling state-of-the-art IT-telephony      Finaref plans to accelerate its
                                                                                                                                     approach                                    with industrialized management              internationalization by accompanying
          he role of the Credit and Financial Services Division
     T    is to provide a full range of financial products and
                                                                                                                                     In accordance with the Group's
                                                                                                                                     “Bricks and Clicks” strategy, the Credit
                                                                                                                                                                                 systems that can deal with almost
                                                                                                                                                                                 2.5 million incoming calls, 33 million
                                                                                                                                                                                 account statements, 20 million mailings
                                                                                                                                                                                                                             the companies in their expansion
                                                                                                                                                                                                                             outside France, either through local
                                                                                                                                                                                                                             partnership agreements, or by setting
     services to customers of the Group’s companies or to                                  1,250 employees                           and Financial Services Division makes
                                                                                                                                                                                 and 4 million e-mail contacts, etc.         up its own structures wherever
     customers of other Group partners, in France and abroad.                                  10 countries in Europe                full use of all the major sales channels
                                                                                                                                     for financial products. This means that     Every day of the year, including            turnover is sufficient.
     One household in 4 uses or owns a Finaref product or                                  6.1 billion euros of outstanding
                                                                                             customer accounts in 2000               its services are available by telephone,    Sundays, from 7 a.m. to midnight,           Finaref plans to establish activities in
     service, nearly 8 million people.                                                     4.2 billion euros of production           by Minitel (in France), on the Internet,    Finaref advisers are readily available to   Italy following the major expansion of
                                                                                                        in 2000                                                                  customers. All they need to do is phone.    Fnac and Conforama there.
     Its expansion is based on a multi-product customer-based                                                                        via sales outlets, as well as by direct
                                                                                           150 million euros of insurance
     strategy, built around three activities: store cards and                                      premiums in 2000                  marketing. This multi-channel
                                                                                                                                     customer approach provides a service        Great strides in
     credit, insurance, and savings.
                                                                                                                                     of unequalled quality.
                                                                                                                                                                                 internationalization
                                                                                                                                                                                                                                                   Finaref Corner
                                                                                                                                                                                 The division ranks number 3 in France
                                                                                                                                     In addition, interoperability enables any
                                                                                                                                                                                 for consumer credit, and it is present
                                                                                                                                     of the Group's store cards to be used
                                           Three activities                                                                          in all the other stores.
                                                                                                                                                                                 in 9 other European countries:
                                                                                                                                                                                 Belgium, Denmark, Finland,
                                                                                                                                                                                 Great Britain, Ireland, Norway,
                                           Store cards and consumer credit              In the area of insurance, Finaref            Unrivalled know-how
           Grand Prix:                     constitute Finaref’s core activities since   provides family-based insurance              In compliance with regulations, Finaref
                                                                                                                                                                                 Portugal, Spain and

            Finaref was awarded                                                                                                                                                  Sweden.
                                           1970. Group customers are offered a          products covering emergency, motor           has pooled its know-how for use in all
             The Grand Prix for            wide range of credit services linked to                                                   three of its activities. With over 14
                                                                                        vehicles, multi-risk home insurance,
        Customer Relations 2000 by
      Teleperformance, acknowledging       the Group's retail companies, such as        loan insurance... In January 2001, Finaref   million accounts and 8 million store
     the quality of its customer service   the Kangourou card (La Redoute), and         also announced a joint-venture project       card holders, Finaref has set up a
                                           the Printemps, Fnac, and Conforama           with ABN AMRO, to develop a range            single customer contact center that
                                           cards, together with consumer credit         of savings and investment products.          improves marketing and personalizes
                                           offerings such as Mistral, Challenger,       The objective over the next 5 years is       its offer even more. It is developing
26                                         and Espace.                                  to sign up 500,000 customers.                tools at the cutting edge of technology,
Business to Bu siness

          he Business to Business Division
     T    incorporates the activities of electrical
     equipment distribution with Rexel,
     wood and building materials with Pinault
     Bois & Matériaux, office supplies and               World leader for the distribution of         Major player in France, Pinault Bois &       European leader for distribution of      Leader for specialized distribution in
     furniture with Guilbert, and international          electrical equipment.                        Matériaux bases its development on two       office and office technology supplies    Africa and in the French overseas
                                                         Rexel is a leading player in                 core businesses: distribution of wood        and furniture.                           departments and territories.
     trade in Africa and the French overseas                                                          and building materials to the building                                                CFAO is the leader in car distribution,
                                                         construction, industrial and services                                                     Guilbert is the specialist in
     departments and territories through                 markets. It targets a great variety of       trade and importing and transformation       consumables and small items of           and through its subsidiary Eurapharma,
     CFAO. Its focus is on business customers,           professionals: electricians, fitters,        of wood. It is the French leader for         essential business equipment. Guilbert   first retailer in pharmaceutical products
                                                         industrial and service companies,            importing resinous wood. PBM is also         bases its development on a concept of    in Africa and in French overseas
     made up for the most part of skilled                                                             present in Morocco through its activities                                             departments and territories. The Group
                                                         volume retailers and public sector                                                        global service to the customer and the
     tradesmen, small companies, major                   organisations. Its offer is focused on       of business services and packaging and       direct user.                             is also a reputable player in the
     businesses and public sector organizations.         4 priority markets: lighting, cabling        distribution operations.                                                              distribution of technical products
                                                                                                                                                   • 7,128* employees
                                                         systems, industrial equipment and safety.    • 6,084* employees                                                                    (telecom, office automation,
     It stands out because of its international                                                                                                    • Sales of 1.5 billion euros for 2000    connections). It is also active in the
                                                         • 25,617* employees                          • Sales of 1.2 billion euros for 2000
     character and is implementing a                                                                                                               • 65% of sales outside France            light industry.
                                                         • Sales of 7.1 billion euros for 2000        • 235 sales outlets in 7 regions in France
     comprehensive strategy of acquisitions                                                                                                        • 9,500 product references,
                                                         • 73% of sales outside France                • 8 companies acquired in 2000,                including 2,300 of its own brand       • 7,766* employees
     in France, in Europe and worldwide.                                                                representing 58 new agencies
                                                         • Present in 32 countries and 4 continents                                                  “Niceday by Guilbert”                  • Sales of 1.2 billion euros for 2000
                                                         • 1,800 sales outlets                        • 20 importing and processing centers        • Over 20 distribution centres           • 25 African countries,
                                                                                                      • 420,000 cubic metres of wood panels                                                   including 5 new countries in 2000
                                                         • 1 million references managed                                                            • 1,500 salespeople

                               11 billion euros:           worldwide                                    sold each year
                                                                                                      • 720,000 cubic metres of resinous
                                                                                                        wood imported in 2000
                                                                                                                                                   • 30,000 orders prepared per day
                                                                                                                                                   • 110,000 parcels delivered per day
                                                                                                                                                                                            • 200 sales outlets
                                                                                                                                                                                            • 30 world-renowned brands
                                                                                                                                                                                              with exclusive retailing rights
                                   2000 sales for                                                                                                                                           • 71% of the sales made in car
                              the Business to Business                                                                                                                                        and pharmaceutical retailing
                                      Division                                                                                                                                              • 15,000 tons of medicines delivered
28                                                       * Staff on 31 December 2000                                                                                                          each year
                                                                                                                                                                                                                                        29
 The specialists                                                                                                                                 stand out
     All around the                                                                          Through the acquisition of Hutter in
                                                                                             March 2000, Guilbert also moved into
                                                                                                                                                 Total
     the world                                                                               second place for office equipment
                                                                                             distribution in Germany, the largest
                                                                                                                                                 revamp…
                                                                                             European market in the sector.
     Because it is present in markets that                                                   In motor vehicle distribution, CFAO                 Pinault Bois & Matériaux is rethinking    to customer needs. Customers also
     are often fragmented and where there                                                    confirmed its advance into East Africa              and modernizing its showrooms.            have the added incentive of collecting
     are frequent opportunities for                                                          with the acquisition of DT Dobie in                 They are now organized by “business       “Light Year” points to win multimedia
                                                                                                                                                                                                                                      Rexel agency in Spain
     acquisitions, the Business to Business                                                  Kenya and Tanzania and by setting up                lines”, to reflect the advisory role      equipment.
     Division puts external growth at the                                                                                                        played by PBM outlets, and they are       Guilbert is successfully deploying its     CFAO is developing servicing
                                               Rexel has thus moved into third               CFAO Zambia.
     centre of its strategy. Its dynamic                                                                                                         fast becoming teaching tools serving      own Niceday brand throughout               contracts for “vehicle fleet” customers
                                               position in the USA and taken a               CFAO also has its sights on North
     expansion has enabled it to increase                                                                                                        professional builders.                    Europe. Niceday was initially launched     in Africa. The Group provides three
                                               leadership position in Canada.                Africa, where it is establishing its
     its market shares, both in France and                                                                                                       With Cerland and Silverwood, PBM          in Great Britain, and has turned out to    “made-to-measure” formulas, which
                                               N°1 in Europe in office supplies,             presence via local partners. CFAO is
     abroad.                                                                                                                                     continues to develop its own brands       be one of the most popular brands          major account companies have already
                                               Guilbert has strengthened its position        launching automobile distribution
     Rexel is the only company in its sector                                                                                                     successfully, and it regularly launches   with customers.                            found attractive.
                                               through the creation of a joint venture       activities in Algeria via Diamal, in
     that is present on 4 continents                                                                                                             innovative products, such as the          It was the cartoonist Charley Barsotti     Thanks to the e-datapharma Extranet,
                                               with the American group Boise                 Morocco by setting up Intermotors,
     (Europe, America, Australia and Asia),                                                                                                                                                who made the first drawings of the         Eurapharma brings to the
                                               Cascade Office Products, which is             and in Egypt by setting up Ibn Sina
     and it has strengthened its global                                                                                                                                                    “Niceday Dog” in 1991 for packaging        pharmaceutical industry a unique
                                               among the world leaders with a                Laborex, a joint venture in the
     leadership and taken a major step                                                                                                                                                     small items of office supplies. The        access to its overall sales data by
                                               presence in North America,                    pharmaceutical sector.
     forward on the North American                                                                                                                                                         Niceday Dog has now become an              product.
                                               Australia/New Zealand and Western             Pinault Bois & Matériaux, a multi-
     electrical equipment distribution                                                       brand company in France, has                                                                  international mascot that is to be found
                                               Europe. This joint venture will enable
     market by acquiring Westburne, a                                                        adopted a strategy of expansion by                                                            especially on the packaging for the
                   Canadian distributor of
                                               Guilbert to build up one of the largest
                                                                                                                                                                                           “Niceday Selection” and “Niceday           Business customers
                                               international distribution and company        "arterial penetration" in the regions               PBM show-room
                       electrical equipment
                          and a major player
                                               service networks, with the same
                                               determination to provide services
                                                                                             where it is already present and by
                                                                                             acquisition in new areas. PBM has                   Odyssea swimming pool and Colibri
                                                                                                                                                                                           Environment” products.
                                                                                                                                                                                           Rexel’s logistics centres, situated in
                                                                                                                                                                                                                                      on-line
                          in the USA.                                                        thus acquired the Mullet group in the               solid wood paneling, which have had       core catchment areas, have moved
                                               based on the “on time, every time”
                                                                                                                                                 considerable success since their          into top gear to ensure optimum quality    Guilbert's Guilweb site was named as
                                               principle. At the same time, Guilbert         Nord-Pas-de-Calais region and Malet
                                                                                                                                                 introduction in 2000. As sales and        and speedy service for customers, and      Master of the Web for 2001, in the
                                               has acquired the US group's European          Matériaux in Hautes-Pyrénées, both of
                                                                                                                                                 technical support tools, the catalogues   to reduce costs.                           “large company” category, an award
                                               office supply distribution activities. This   which are specialists in the building
                                                                                                                                                 are increasingly more attractive, and     Thus, the state-of-the-art centre at       made every year by the French
                                               enables it to widen its customer base         materials trade. In the last two years,
                                                                                                                                                 provide customers with valuable advice.   Saint-Vulbas, near Lyon, has become        magazine Management. guilweb.com
                                               among the small and medium-sized              PBM has set up more than 60 new
                                                                                                                                                 In the marketing field, Rexel has         the model for all Rexel centres.           is a site designed for professional
                                               companies that make up 50% of the             outlets.
                                                                                                            Niceday, the own brand by Guilbert   launched the “Light Year” promotion       Its objective is to facilitate the swift   users and enables client companies to
                                               European market, and complement its
                                                                                                                                                 operation, which is being carried out     strategic evolution of logistics, a key    consult catalogues at their own
                                               sales formats with catalogue selling,
                                                                                                                                                 simultaneously in 16 countries.           element of business distribution, in       specially negotiated prices, place
                                               mainly via the JPG company.
                            CFAO Burkina                                                                                                         Rexel has selected 17 multi-brand         order to make additional gains in          orders and monitor their budgets by
                                                                                                                                                 high-added-value light source             productivity and competitiveness.          department or by product family. This
                                                                                                                                                 products that respond particularly well                                              business model, which is already
30                                                                                                                                                                                                                                    profitable, is now being implemented
                                                                                                                                                                                                                                      for the other companies in the division.   31
 Luxury Goods

          s a result of the strategic alliance signed in
     A    March 1999 between Pinault-Printemps-
     Redoute and the Gucci group, the creation of a
     multi-brand Luxury Goods Division is now a reality.
     The velocity of its creation and the level of growth    At the “heart” of the Gucci group, the     Yves Saint Laurent                         Italian designer and manufacturer of      One of the world’s most prestigious
     have been spectacular : in the course of this           Gucci brand is present in the design,      World-renowned luxury ready-to-wear        luxury shoes for women, and starting      and exclusive jewelry, watch and
     period, the division has almost doubled its sales       manufacture and distribution of very       company, which designs, produces           in 2001 a men’s shoes collection and      perfume brands.
                                                             high quality luxury products, which are    and distributes women’s and men’s          luxury leather products.
     and posted one of the highest rates of profitability                                                                                                                                    • 443 employees**
                                                             ready-to-wear clothing, leather            ready-to-wear clothing, and fashion
     in the sector. The Gucci group has added with                                                                                                 • 400 employees**                         • Sales* of 42 million euros for 4 months
                                                             products, shoes, watches, jewels, ties     accessories.
                                                                                                                                                   • Sales* of 69 million euros for a year     (July to October 2000)
     unique prestige brands: Yves Saint Laurent, Sergio      and scarves, eyewear, perfumes.
                                                                                                        • 622 employees**                          • 19 directly operated boutiques          • 12 directly operated stores by end of
     Rossi, Boucheron, more recently the watchmaker          • 3,679 employees**                        • Sales* of 94 million euros for a year      worldwide by end of 2000, of which        2000: 4 in France, 1 in Taiwan
     BÉDAT & C°, and the Italian leather goods               • Sales* of 1.5 billion euros for a year   • 47 boutiques worldwide, of which 32        13 outside Italy                          and 7 in Japan
     company Bottega Veneta. It also signed an               • 143 directly operated stores               directly operated by the end of 2000     • 530,000 pairs of women’s shoes sold     • 7,500 sales outlets worldwide for
                                                             • 44% of sales in leather goods                                                         within a year                             perfumes and 260 for timepieces
     alliance with Alexander McQueen to develop his
                                                               (1999 figure)                            YSL Beauté                                                                           • 3 million perfume bottles sold
     young brand.
     The Gucci group is un-
                                                             • A perfectly balanced worldwide           Perfume, make-up and beauty products,      Bottega Veneta                              worldwide in 2000
                                                               presence : 22% in Japan,                 the company holds prestigious brands       Italian luxury leather goods company,
     questionably the refe-                                    18% other Asia, 30% Europe               such as Yves Saint Laurent and             founded in 1962.                          BÉDAT & C°
     rence for success in
                                    With annual sales* of      and 27% United States                    Roger & Gallet and the licences for                                                  Swiss luxury watchmaker based in
                                                                                                                                                   • Based in Italy, in the Vicenza and
     the world of luxury
     goods. The Group is
                                        2.2                  • In 2000, 6 stores opened and
                                                               3 flagship boutiques were renovated,
                                                               in New York, Rome and Paris
                                                                                                        Oscar de la Renta, Van Cleef & Arpels
                                                                                                        and Fendi.

                                                                                                        • 3,736 employees**
                                                                                                                                                     Milan areas
                                                                                                                                                   • 12 directly operated stores in the
                                                                                                                                                                                             Geneva.

                                                                                                                                                                                             • Founded in 1996 by Christian and

     now in a position to          billion euros                                                        • Sales* of 488 million euros for a year
                                                                                                                                                     United States, 5 in Europe and
                                                                                                                                                     4 in Asia
                                                                                                                                                                                               Simone Bédat
                                                                                                                                                                                             • Currently distributed primarily in the
     offer its experience to        Gucci ranks number 3                                                                                                                                       United States and in Geneva
     all future acquisitions     worldwide in luxury goods
32   or partnerships.
                                                             * Sales for 12 months from Nov. 1999
                                                               to Oct. 2000
                                                                                                        ** Staff at the end of 2000
                                                                                                                                                                                                                                         33
 The Art of seducing across borders
 A tradition                                                                                                                            Besides the artistic management of the     New
                                                                                             Group has shown a real ability to
 of excellence                                                                               create synergies by capitalizing on the
                                                                                                                                        Yves Saint Laurent lines and the
                                                                                                                                        elaboration of a coherent,                 concepts
                                                                                             complementary know-how of its              contemporary overall image, Tom Ford
     Gucci ranks number three among                                                          various brands. For example, Yves          also plays a part in management and        Gucci Baby, a mini-collection of about
     multi-brand luxury goods groups                                                         Saint Laurent leather goods are now        strategy, with Domenico de Sole,           ten articles, is an idea that sprang
     worldwide. Historically specialized in                                                  manufactured in the Gucci workshops        the Group's Chairman and Managing          directly from Tom Ford’s talents, the
     luxury leather goods, Gucci is now                                                      in Italy. And Gucci Timepieces has         Director, thus proving that creativity     success of which has been immediate.
     present in the design, manufacture,                                                     become the center of expertise for the     can and must be part of an international   The kangaroo baby carrier, white mink
     and distribution of ready-to-wear                                                       Group as a whole in watchmaking.           sales and marketing strategy when it is    coat, and Perfecto jackets, etc. are all
     clothing, shoes, ties and scarves,                                                      Gucci, a brand with a worldwide            to be exported at top levels.              signed Gucci, and they are being
     eyewear and perfumes, as well as                                                        reputation, enjoys an excellent            In October 2000, in Paris, Tom Ford        snapped up by customers looking for
     timepieces and jewellery goods.           brands, he makes sure that the highest        geographical balance of its activities,    presented his first collection of Yves     especially exclusive presents.
     Two key concepts that essentially         standards are adhered to, both in the         that spreads for near 22% of its sales     Saint Laurent ready-to-wear clothing,      The new Gucci boutique in Paris, rue
     contribute to Gucci’s success –           field of design itself, and with regard       in Japan, 18% in other Asian               which was a major success.                 Royale, recently renovated and
     absolute coherence of the brand           to the exclusive image of the Group's         countries, 30% in Europe and 27% in                                                   widened, is the illustration of the new
     and integrated, directly managed          brands, whether in advertising,               the USA.                                                                              concept store devised by Tom Ford, to        Boucheron:
     activities. The creative actions          architecture, store layouts or                In all the markets, the Group operates                                                be applied in all the brand's boutiques
     developed throughout the Gucci group      merchandising, etc.                           stores directly and distributes its                                                   throughout the world by the American         a pure jewel
     are carefully co-ordinated by Tom Ford,   After an intensive programme of               products via franchised boutiques,                                                    architect William Sofield. In a sculptural
     the Group's Creative Director and         opening directly operated stores, the         duty-free shops, department stores                                                    decor, with a backdrop of limestone          The first jeweler at place Vendôme in
     Chief Designer. In close association      progressive buying back of franchises         and specialized stores.                                                               and polished steel, this flagship Gucci      Paris, Boucheron has since 1858 a
     with the design teams of the various      and licenses, and the reinforcement of        Breathing a new aura into ready-to-wear                                               boutique houses a sales area of 1,000        fabulous amount of expertise in
                                                        management oversight on              clothes by Yves Saint Laurent, the                                                    square meters on four levels.                jewellery and watchmaking. Its equally
                                                        manufacturing, Gucci now             mythical fashion brand, and ensuring                                                  Two floors are dedicated to women’s          successful development in perfumes
                                                        has full control of its image        continuity to face the future while                                                   ready-to-wear clothing, 70 models of         since 1988 has only reinforced its
                                                        through its integrated activities.   innovating at the same time: this is the   Alongside a programme of renovation        handbags and 100 styles of shoes;            reputation for elegance, quality and
                                                        Taking all the companies in          challenge taken up by the talented         of its existing stores, Yves Saint         200 square meters are reserved for           exclusivity that perfectly corresponds
                                                        the Gucci group together, the        visionary Tom Ford, the Creative           Laurent more than doubled the number       menswear and 11 products. This new           to the Gucci group strategy.
                                                       number of directly operated           Director of the Gucci group.               of directly operated stores since the      format puts sobriety and space at the        The Group's intention is to give
                                                      stores increased from 170 in                                                      end of 1999. The store in Las Vegas,       service of the Group’s star products.        Boucheron an international dimension,
                                                      1999 to 206 at the end of 2000.                                                   prototype of the new store concept                                                      based notably on a program of store
                                                      While placing particular                                                          designed by Tom Ford with the                                                           openings in Europe, the United States
                                                     emphasis on accelerating its                                                       architect William Sofield, will be used                                                 and Asia. In the next 2 or 3 years,
                                                    international expansion and                                                         as a reference for the new boutiques.
                                                                                                                                                                                                Opium                           Boucheron will open new stores in the
                                                     tightening its control of the
                                                                                                                                                                                          perfume of                            main cities worldwide, to be added to
                                                                                                                                        By 2002, the brand will have 50 to 60
                                                       brands and their image, the
                                                                                                                                                                                      Yves Saint Laurent                        the twelve already directly operated.
                                                                                                                                        directly operated boutiques worldwide,
                                                                                                                                                                                       is one of the 10
                                                                                                                                        to which should be added a significant
                                                                                                                                                                                     best-selling perfumes
                                                                                                                                        presence in department stores
                                                                                                                                                                                           in Europe
34                                                                                                                                      throughout the world.                                                                                                            35
     Contacts
                                                                                   Credit and
     Retail                                     Business to Business               Financial Services                                                     Luxury Goods

     • FRANCE PRINTEMPS                         • REXEL                            • FINAREF                                                              • GUCCI GROUP N.V.
     Per Kaufmann*                              Alain Redheuil                     Alain van Groenendael                                                  Domenico de Sole
     Chairman of the Management Board           Chairman and Managing Director     Chairman and Managing Director                                         Chairman and Managing Director
     61 rue Caumartin                           25 rue de Clichy                   of the Credit and Financial Services Division                          Rembrandt Tower
     75009 PARIS                                75009 PARIS                        21 place de la Madeleine                                               1 Amstelpein
     Tel.: 00 33 1 42 82 50 00                  Tel.: 00 33 1 42 85 85 00          75008 PARIS                                                            1096 HA AMSTERDAM
     www.printemps.fr                           www.rexelgroup.com                 Tel.: 00 33 3 20 69 50 00                                              THE NETHERLANDS
                                                                                   www.finaref.fr                                                         Tel.: 00 31 20 4621 700
                                                                                                                                                          www.gucci.com

     • CONFORAMA
                                                • PINAULT BOIS & MATÉRIAUX
     Per Kaufmann
     Chairman of the Management Board           Thierry Falque-Pierrotin
     80 boulevard du Mandinet                   Chairman and Managing Director
     Lognes                                     176 avenue Charles de Gaulle                                        Pinault-Printemps-Redoute
     77432 MARNE LA VALLEE CEDEX 2              92522 NEUILLY SUR SEINE CEDEX
     Tel.: 00 33 1 60 95 28 00                  Tel.: 00 33 1 41 92 50 00
     www.conforama.com                          www.pbmgroup.com
                                                                                                                  • Serge Weinberg, Chairman of the Management Board and CEO

                                                                                                                    • Yves Barraquand, Deputy CEO, cross-functional resources
     • REDCATS                                  • GUILBERT
                                                                                                               • Dominique-Henri Freiche, Vice-President International Development
     Hartmut Krämer                             Jean-Charles Pauze
     Chairman and Managing Director             Chairman of the Management Board
     110 rue Blanchemaille                      Avenue du Poteau                                                         • Thomas Kamm, Vice-President Corporate Affairs
     BP 44                                      60451 SENLIS CEDEX
     59051 ROUBAIX CEDEX                        Tel.: 00 33 3 44 54 54 54                                           • Philippe Klocanas, Vice-President Corporate Development
     Tel.: 00 33 3 20 69 60 00                  www.guilbert.com
     www.redcats.com                                                                                     • Vincent de La Vaissière, Vice-President Corporate Communications of the Group

                                                                                                                       • Franck Leprou, Vice-President Strategy and Planning

                                                • CFAO                                                              • Patrice Marteau, Corporate Secretary and CFO of the Group

     • FNAC                                     Alain Viry                                            • Jean-François Nebel, Chairman of the Management Board and CEO of PPR Interactive
     Jean-Paul Giraud                           Chairman and Managing Director
     Chairman and Managing Director             18 rue Troyon                                                     • François Potier, Vice-President Human Resources of the Group
     67 boulevard du Général Leclerc            92316 SEVRES CEDEX
     92612 CLICHY CEDEX                         Tel.: 00 33 1 46 23 56 56
     Tel.: 00 33 1 55 21 57 93                  www.cfaogroup.com
     www.fnac.com
                                                                                                                       18 place Henri-Bergson - 75381 PARIS Cedex 08 - FRANCE
                                                                                                                                          www.pprgroup.com
36    *until the appointment of his successor

				
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