WEEKLY BUSINESS BRIEF

Spanish telephone company Telefónica increased the price of their line rental this week, after the agreement to freeze the rate expired on the 31st of March this year. However, the monthly fee of 14,38 euro is still lower than the European average, which is currently 15,26 euro. The five year agreement to freeze the price came into force in 2008 and is now liable to increase in line with the Consumer Price Index until 2016, when the matter may be reviewed.

Receiving their mobile phone bills have put many people on the warpath to denounce mobile phone operator Vodafone, after one consumer association reports receiving countless complaints that the company has reduced the mobile internet allowance of some customers, and are now charging for what was originally free, under the agreements of the tariff contracts supplied. Users on their “Base” and “Base 2” rates have seen a reduction to 1GB of data per month, with each 100Mb consumed thereafter costing 2,42 euro, plus IVA. Users who have been affected are encouraged to contact Vodafone, in writing, as this clearly violates the terms of the contract.

The clothing company Basi SA, responsible for the manufacturing of the famous Lacoste brand in Spain, has presented a redundancy plan that will affect 86 of the company´s workers, around 17% of the entire workforce. The company held the manufacturing and distribution rights in Spain since 1962 and have renewed their contract for distribution, but opted out of continuing to make the clothing in their Barcelona facility. The company has said that the reason is because of the “crisis in the market” and a decision that may be reversed should business start to increase.

French owned chain of electric and home appliance stores, Darty, will shut their doors for the last time in June across Spain, with the loss of 650 jobs from the closure of their 43 stores, at a cost of 30 million euro. This decision is part of its strategic plan to eliminate losses in non-core markets, including Spain, and focus on France, Belgium and the Netherlands, according to the company, who said in a statement, “To significantly improve our position in Spain would be a long and potentially costly trip with no guarantee of success in what would be a very difficult market”. In Spain, Darty expects to reach a turnover of 120 million euro at year-end 2012 to 2013, which ends April the 30th, with an operating loss of 16 million euro. The total losses since acquisition in 2007, until April 30th, 2012, stood at 74 million euro.

Josep Botet, one of the three founders of Barcelona born supermarket chain Caprabo, died this week, at the age of 99. Founded in 1959 by Pere Carbó, Jaume Prat and Josep Botet, the name was formed by the first letters of their surnames, the store is famed for braking the mould of grocery shops in Spain, until the Eroski group took over 75% of the business in 2007, completing full ownership in 2012.

Electrical retailer Media Markt has launched a new campaign this week, whereas spending 25 euro or more allows customers to enter into a contest to become a “Golden Customer”, whereas the winner will be given 2 minutes in one of the electrical stores to pick up as many items as can be carried in your hands, and those goods will be yours to keep. The winner will be notified in the middle of May when one lucky entrant will be invited to grab what they can, in a similar competition which they held two years ago, at which time the winner grabbed 28,000 euro worth of goods.

Filed under: http://www.theleader.info/article/38456/

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