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Media Markt and Saturn: Ceconomy anticipates more delivery problems

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Mediamarket Saturn Retail Group
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Popular products could also become rare again this coming Christmas season. Germany’s largest electronics retailer is preparing for disruptions in supply chains with its Media Markt and Saturn chains.

Ceconomy (Germany’s largest electronics retailer)Media Market, Saturn) expects problems due to delivery bottlenecks in the upcoming Christmas business due to the Corona pandemic and the war in Ukraine. “We anticipate and prepare for disruptions,” CEO Carsten Wildberger said on Friday. The situation is tense. The Group will take this into account when purchasing its inventories and, if necessary, increasing its inventory.

However, at the beginning of the year, the electronics retailer through its Media Markt and Saturn chains initially benefited from the lifting of Corona restrictions. Sales rose from 4.3 billion euros to 5 billion euros in the months from January to March. Adjusted for currency and portfolio effects, sales were 18.8 percent higher compared to the same quarter a year earlier, which was marked by coronavirus-related shutdowns in important markets. Operating loss (EBIT) adjusted for special effects decreased from €146 million to €62 million. The net result was a loss of 21 million euros.

The increase in sales is mainly due to the recovery of established businesses in Germany and Western and Southern Europe thanks to the reopening of stores. The online businesses of Media Markt and Saturn, which helped the group during the shutdown, have lost some of their relevance again. In the second quarter of fiscal year 2021/22, the share of e-commerce in total sales shrank to 25 percent. During lockdown it was sometimes around 50 per cent. In the medium term, the group aims to have an online share of around 30 percent.

Strengthening stable business

Media Markt and Saturn’s 1,000+ stores should continue to play an important role in the collection. “We want to strengthen our established business,” Wildberger said. Looking ahead, thanks to the new, smaller formats, there will likely be more than fewer markets in the future.

The director is confident of this year’s extra track. Although high inflation and the war in Ukraine are currently affecting the consumer climate, the electronics retailer is expecting a slight increase in sales.

Ceconomy is not represented in Russia and Ukraine; The company left the Russian market in 2018. The only commitment in Russia is a 15 percent financial stake in electronics retailer M.video. However, the company does not exercise any rights there. With the help of an expert, Ceconomy has corrected the market value of the investment downward from 138 million to 43 million euros, as a reliable estimate cannot be derived from the price data available on the Moscow Stock Exchange. Economy.

Text: dpa / Editor: JN

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  • df-mediamarkt-saturn1: MediamarktSaturn Retail Group

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