MRM - 2020 Universal Registration Document

1

Information on M.R.M.’s activities

Presentation of the Company

in rents (rue Montorgueil, rue Mouffetard). Ready-to-wear clothing is competing fercely with the e-commerce market and may also see rents slide in the coming months, due to the sales shortfall. E-commerce The e-commerce market was relatively stable in Q3, generating some €27 billion sales. Growth has dwindled compared to the previous year, with +8.1% vs. +10.9% in Q3 2019. The trade association Fevad (1) estimates full-year sales for 2020 at €115 billion. Purchases from retailers’ websites continued to flourish over the quarter (+29% vs. +11% for pure players). These fgures are yet another demonstration of consumers’ attachment to physical sales. They show a strengthening of the trend observed since the beginning of 2020, with purchases triple those of the previous year (accounting for 41% of total sales vs. 13% in 2019). The health crisis pushed up the sale of goods, particularly food, to around €65 billion in 2020 (PMA/Eurostat/Oxford Economics). In this context, estimated sales soared +71% to the end of the year compared to 2019 (estimated indicator on the basis of e-commerce sales for 2020 of €115 billion). All business sectors have benefted from this trend, particularly food (+36%), perfumes/cosmetics (+31%) and personal goods (+17%). The latter was already thriving before the crisis, which partly explains the slide in footfall and sales for the sector in terms of physical stores since 2019. In light of these observations, it is interesting to see the shift that may have occurred between store closures 2020 was without a doubt an extremely unusual year for the entire planet, and the retail sector was no exception. Due to the world health crisis, retail has experimented store closures, the classifcation of essential and non-essential stores, problems with deliveries and supplies in a context of market closures, adapting conditions for access to stores with the implementation of social distancing, access limits, hydroalcoholic gel, etc. With the closure of stores, retail brands saw a spectacular decrease in their revenue, notably in ready-to-wear and beauty. On the other hand, food stores, local stores, discount, sport

and the trend in online purchasing habits. E-commerce has largely been used as a back-up solution with the closure of retailers. In this context, the challenge for the various players (retailer and pure-player websites) will be to adapt an effective omnichannel alternative to inspire loyalty in this new clientele once the health crisis is over. Retail revenue by sector Despite the year’s struggles, Q3 began with a measure of resilience, partly helped by the summer holidays. It is worth noting the robust performance in Q3 2020 compared to Q3 2019 (+2.0%). Conversely, the full-year fgures were still down -2.4%. Several sectors flourished in Q3. Household equipment performed robustly at +14% compared to Q3 2019, but was still down over the year at - 1.8%. The food sector is still holding up well with positive growth of +2.7%. Nevertheless, there was a slight slowdown for the consumption of the sector as a whole in Q3 2020. From the second lockdown, sales generally slowed again in November. According to Banque de France, the ready-to-wear sector saw a slump of -68% compared to November 2019 while household equipment fell by -19%. The culture sector was also hit with a loss estimated at -50% of its monthly sales. With respect to shopping centres, the ban on the sale of goods that compete directly with stores that have had to close has made an impact. This distribution channel has been closed to books, ready-to-wear and interior decoration, resulting in an additional sales shortfall. [...] stores and garden centres benefted from the transfer of other purchases to these so-called essential stores, and often saw an increase in revenue during 2020. During this period, e-commerce posted spectacular growth, for all business segments, limiting losses for retail chains. In the end, 2020 should not be seen as a revolutionary year for retail, but more of an accelerator of underlying trends that markets had already been experiencing over several years: • the search for well-being: the demographic development of medium-sized cities, in western and southern France,

1.4.3 The Group’s analysis of market trends

(1) FEVAD: Federation of e-commerce and distance selling

M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT

19