ARGENTINA - On September 14th Falabella announced that was evaluating alternatives to improve the profitability of the operations of its subsidiaries in Argentina, which could include the incorporation of a strategic partner for them.

In a Material Fact communication to the market Falabella stated, “The pandemic has accelerated the digitization process of the retail businesses and has affected its results in that country. To adapt to this new trend and make the operation in Argentina sustainable over time, the company has decided to close four of its stores in Buenos Aires in the coming months: two Sodimac home improvement stores and two Falabella Retail stores”.

The company explained further, “To support this process, the implementation of a voluntary retirement program has been implemented. This plan also includes workers from headquarters. Those employees of the stores that will be closed will have the option of being relocated to another branch store.”

At the end of 2019 Falabella operated 511 stores in seven countries: Chile, Colombia, Peru, Argentina, Brazil, Uruguay and Mexico.

The company's banners include the Falabella department stores, the home improvement Sodimac Homecenter -  Constructor banner and the Totus supermarket chain.

Argentina was the first external market  of the Chilean Group, to which it entered in 1993. At the time of this announcement, Falabella operated in Argentina 10 department stores and 9 Sodimac Home improvement stores.