No festive end-of-year outcomes for MediaMarkt


The yr 2021 didn’t finish on a excessive be aware for Ceconomy, the mother or father firm of MediaMarkt and Saturn. After the Covid increase throughout 2020, the group needed to face a major drop in turnover and revenue on the finish of final yr.

 

Sharp distinction

Electronics retailers MediaMarkt and Saturn recorded a fall in turnover and revenue within the quarter ending December 2021 (the primary quarter of the damaged 2021/2022 monetary yr). In 2020, the excessive share of individuals working and staying at residence supplied the retail group with a document yr: individuals have been shopping for new TVs, recreation consoles and laptop screens en masse. However as soon as these investments had been made, sadly for mother or father holding firm Ceconomy, issues got here to a standstill. 

 

Within the three months main as much as the top of December, turnover fell from 7.5 billion euros in 2020 to six.9 billion euros now. Working revenue fell from 346 million euros to 274 million euros. Nonetheless, CEO Karsten Wildberger factors out that the 2 intervals are usually not simply comparable. Not solely was 2020 an distinctive yr, however in 2021, there have been a number of components that threw spanners within the works.

 

For instance, in some international locations, shops have been closed on account of lockdowns, and in Germany, prospects have been solely allowed to buy upon displaying their Covid cross. MediaMarkt has additionally fallen sufferer to a large-scale cyber assault in December, whereas the worldwide provide chain throughout the trade suffered. Wildberger additionally talked about elevated inflation and vitality costs as causes for decrease gross sales.

 

Retailer closures?

However, the chief government emphasises the gross sales progress in comparison with the pre-Covid yr 2019 (+2.9 per cent) and their persistent place in e-commerce. On-line already accounts for 27.5 per cent of all gross sales. The pattern would even have been “very encouraging” within the second half of December. 

 

This yr, Ceconomy is relying on a slight gross sales progress, though the electro-retailer additionally hints at potential retailer closures: there can be “portfolio adjustments”, says CFO Florian Wieser. One closure has already been introduced in Belgium: the MediaMarkt shop-in-shop at Makro in Antwerp will shut on account of losses.

 

The group doesn’t but predict a lot, however income are sure to rise. “We must always all put together for some volatility; that’s merely a part of the brand new regular”, says Wieser philosophically. 

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The yr 2021 didn’t finish on a excessive be aware for Ceconomy, the mother or father firm of MediaMarkt and Saturn. After the Covid increase throughout 2020, the group needed to face a major drop in turnover and revenue on the finish of final yr.   Sharp distinction Electronics retailers MediaMarkt and Saturn recorded a fall in turnover and revenue within the quarter ending December 2021 (the primary quarter of the damaged 2021/2022 monetary yr). In 2020, the excessive share of individuals working and staying at residence supplied the retail group with a document yr: individuals have been shopping for new TVs, recreation consoles…



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