Darty exits Turkish business to stem losses
Britain's Darty PLC on Wednesday said it had agreed to sell its Turkish business, Darty Turkey, under a plan to eliminate losses in non-core markets. The British retail firm also said that it was in talks to buy French multimedia website Mistergoodeal.
Financial terms of the said deals, however, were not disclosed. Darty is the third-largest electricals retailer in Europe.
According to a report by Reuters, Darty said it was confident it would deliver an improvement in earnings over the medium-term as its turnaround plan was starting to bear fruit. Darty's operating profit rose 25.6% to €15.2 million ($20.87 million) in the first-half ended October 31.
Sales at Darty France, which account for 70% of Darty's total revenue, rose 2.7%. The electricals retailer said that its cost-cutting plan in the country was making good progress, the report stated.
Darty, like its larger rivals Metro's Media Saturn and Dixons Retail, has been battling weak consumer spending and competition from online retailers. It has responded by cutting costs, exiting loss-making operations in Italy and Spain and focusing on its core markets of France, Belgium and the Netherlands, Reuters said.