Electronics retailer Ceconomy sees itself back on track with the Media Markt and Saturn chains despite the challenges posed by the Corona crisis.
“After the end of the store closings, we quickly regained our feet in May,” said Ceconomy boss Bernhard Düttmann on Thursday at the presentation of the quarterly figures in Düsseldorf. Nevertheless, the electronics retailer wants to give up three branches in Germany. Düttmann did not say which branches should be closed.
The success of the online business, which in the third quarter of business from April to June already contributed more than a third to total sales, played a major role in the rapid recovery in sales. For the full year, the electronics retailer is now only expecting a slight decline in currency-adjusted sales despite the store closings in April.
In the third quarter, sales fell by 10 percent to around 4.1 billion euros. The main reason for this was the state-ordered shop closings in April. After that, Media Markt and Saturn quickly got back on their feet. In May sales were already 3 percent above the previous year’s level. In June, the sales figures even exceeded the previous year’s figure by 12 percent.
The positive trend also continued in July. According to the company, the group benefited from both the VAT cut in Germany and the continued strong demand for home office, home schooling and home entertainment products.
The main growth driver was the online business, which grew by around 143 percent in the third quarter. This increased online sales to 1.4 billion euros. Their share of total sales reached 35.2 percent.
Despite the rapid recovery, Ceconomy had to post a loss of 104 million euros for the third quarter. The minus was thus more than twice as high as in the previous year. On Wednesday, the Ceconomy Supervisory Board therefore approved a plan to realign the electronics retailer, with which the structures of the group are to be simplified and up to 3,500 jobs to be cut. In addition, Ceconomy wants to initially close 14 loss-making stores, including the three stores in Germany.
- df-mediamarkt-saturn1: MediamarktSaturn RetailGroup