📈 Strong Profitability Gains
Ceconomy, the owner of MediaMarkt and Saturn, is reaping rewards from its new retail strategy. The company’s revenue grew 4.1% to $23.7B in the financial year ending on September 30. This marks its fourth consecutive year of growth. Most significantly, the company achieved profitability increases for the seventh consecutive quarter, with projected profits between $290M and $310M, hitting the top end of earlier estimates. CEO Karsten Wildberger says these results align with its commitment to smaller stores and modernized retail experiences.
🛠 Renovating and Modernizing Stores
As part of its transformation, Ceconomy has already updated two-thirds of its store network, aiming to reach 90% modernization by September 2026. This ambitious program includes closing less profitable locations and transitioning more Saturn outlets to the MediaMarkt brand. The company is also introducing more compact “Xpress” shops and refining in-store layouts to meet evolving consumer needs, creating a more efficient retail experience across its network.
🏬 Expanding Xpress and Shop-in-Shop Concepts
Ceconomy’s smaller Xpress store concept is proving popular, leading to an expansion in urban areas. These stores offer a more curated range of products, meeting demand for convenience and speed. Additionally, Ceconomy is planning new “shop-in-shop” installations within Galeria department stores, aiming to capture more foot traffic and improve brand visibility. This model allows the company to offer specialized tech in a familiar setting, potentially attracting a broader customer base.
💻 Boost from Digital Marketplace
The online marketplace remains a critical growth area for Ceconomy. Its e-commerce initiatives provide customers with a larger selection and drive traffic to physical stores. Wildberger notes that online sales have strengthened the company’s revenue and customer engagement. The digital marketplace complements its physical store strategy, adding to the overall positive financial performance. As Ceconomy continues to balance physical and online retail, its multi-channel approach is paving the way for sustained growth.
Are smaller stores the future for big retailers?
