, 2020 Annual Report | Grupo Sanborns

square meters of commercial space in our stores at the end of 2020.

square meters of commercial space in our stores at the end of 2020.

Sanborns is a unique and highly successful retail sales concept in Mexico. It is the leader in the sale of multiple categories of products and services, such as: books, photographic equipment, cell phones and telephone accessories, perfumes and cosmetic products. Additionally, it is the second largest chain of bars and restaurants. Because of the COVID-19 pandemic Sanborns temporarily closed 96 stores and 22 Sanborns Cafés, while the rest continued to provide essential products and services in the pharmacy, telecommunications and other departments. The categories that were most affected as a result of the partial closure of its physical stores were its restaurants and bars, and book and magazine sales, while the categories that improved were electronics, computers and video games.

The most important activities that were implemented to address the drop in the number of customers visiting our stores as a result of the pandemic were in the optimization of the merchandise, the improvement of the online promotions, and the implementation of measures to control expenses in our stores and restaurants. Adjustments were made and logistical actions were carried out to ensure appropriate hygienic conditions, always following the protocols indicated by the health authorities, while continuing to promote sales through online channels.

During 2020, the number of units was optimized with the elimination of 11 nonproductive stores. On June 30 of 2020 the Sanborns Café, Dax, and Saks Fifth Avenue formats, along with their respective services companies and the administration of the Sanborns and MixUp credit cards were merged into Sanborns. On July 31 of 2020, Sanborn Hermanos, S. A. de C. V. merged [with] its subsidiary Comercializadora de Tiendas Internacionales, S.A de C.V.; Promotora Musical, S.A. de C.V. merged [with] its subsidiary Paden, S.A. de C.V., and Sears Operadora México, S.A. de C.V. merged with its subsidiary Secorh, S.A. de C.V. On November 30 of 2020, Claroshop.com, S.A. de C.V. merged with the subsidiary Claroshop.com Holding, S.A. de C.V. and the subsidiary Empresa de Personal Claroshop.com, S.A. de C.V.

At the end of the year Sanborns included Dax, Sanborns Home & Fashion, the Sanborns Café restaurants and Saks Fifth Avenue, for a total of 200 stores and 290,783 m2 of commercial space.

Saks Fifth Avenue offers products and services similar to Saks Fifth Avenue stores in the United States, adapting to local preferences. While DAX stores offer convenience, opportunity, perfume, cosmetics, personal care, and household items through direct sales to end consumers.

From March 31 to June 15, 2020, all Saks Fifth Avenue stores and 22 Sanborns Café stores were temporarily closed to the public. The Dax stores continued to operate as self-service stores. The Loreto and Plaza Inbursa shopping centers were temporarily closed, only the restaurant service was maintained under the prepared food and take-out beverages to go. Sales and customer service to customers continued through its digital stores. During 2020, the Saks Fifth Avenue store in Plaza Carso was closed and replaced by the new Sanborns Home&Fashion format.

Sanborns stores, including Dax, Sanborns Home & Fashion, Sanborns Café restaurants and Saks Fifth Avenue.

Million pesos