HomeTechnologyMediamarkt and Saturn are closing some branches in Germany

Mediamarkt and Saturn are closing some branches in Germany

A Saturn store. (Photo: nitpicker / shutterstock)

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Some branches fell victim to the renovation at Mediamarkt and Saturn. The parent company Ceconomy wants to focus on smaller locations in the future.

The electronics company Ceconomy closes a number of its branches in Germany. A total of 13 Mediamarkt and Saturn branches in Germany would be closed in the financial year that will run until the end of September, said CFO Florian Wieser on Thursday in Düsseldorf. There are also 10 to 15 branches abroad. At the same time, however, the manager tried to dispel concerns about another wave of closures. No major restructuring program is planned. Overall, there will be more than fewer locations in the future.

In fact, the electronics retailer is planning new store formats to meet customer needs that have changed since the pandemic. “For a long time the motto was: More space and more products lead to more customers and sales. It’s not that easy today, “said the head of Ceconomy and Mediamarktsaturn, Karsten Wildberger.

Focus on smaller markets

In the city centers, smaller Mediamarkt and Saturn stores could therefore arise that require less space with a selected range and digital connection. Wildberger is also toying with shop-in-shop concepts, in which a small range of electronics is presented in hypermarkets, for example. At the top, “lighthouse markets” with a large area could round off the offer. The first tests of the concepts are already taking place abroad. But the first innovations should also be found in Germany in the coming year.

At the moment, Ceconomy is also struggling with the corona crisis. Although the electronics retailer was able to increase its sales in the past quarter thanks to good business, especially in Spain, Italy and Turkey, as well as the booming online trade, by eight percent to 4.4 billion euros, the group slipped deeper into the operating loss zone. The adjusted operating deficit (EBIT) rose from 45 million euros in the same period of the previous year to 93 million euros. The bottom line was a loss of 67 million euros. The business in Germany in particular suffered from the month-long corona-related store closings.

Wildberger, who has been at the helm of the company for two weeks, showed despite the mixed numbers, are cautiously optimistic. “My first impression is: The company is basically on the right track, but there is a lot to do.” dpa

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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