Mediamarkt closes stores in Germany while reinforcing its presence in Spain

Mediumkt is one of the chains dedicated to the sale of consumer electronics products with more presence in Europe.The German company has a thousand stores on the continent.However, following the pandemic, the company is carrying out a process of change in its strategy.

A few weeks ago, it was made public that the Mediamarkt and Saturn matrix, Ceconomy, will close 13 stores in their native Germany before October.In addition, it is proposed to do the same operation in another 10 or 15 European establishments.However, from the company specify that there will be no wave of closures and that there is no other restructuring plan.

Following the pandemic, Mediamarkt's business idea has changed.«For a long time our motto was that more space and more products were translated into more customers and more sales.But today things are not so simple, ”emphasizes Kartsen Wildberger, CEO of Ceconomy.

In addition, Mediamarkt's mother company considers opening stores of a smaller size in the center of cities that have a limited porpholio of products and digital connection.Nor do they rule out the concept of ‘Shop-in-Shop’, a small range of electronic products in large commercial surfaces, and the so-called ‘Lighthouse’ stores.

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The main problem Ceconomy has is its economic crisis.The group continues in red numbers.Ceconomy's adjusted operational deficit climbed up to 93 million euros compared to 45 of the second quarter of the previous year.The company drags losses of 67 million euros at this time.

Privileged situation of Spain

In contrast is Mediamarkt Spain.The Spanish subsidiary closed last year with an income of 492 million, 18% more than in the same period of 2019. The national branch is the one that grants the second best results for the group, only behind Italy.

Perhaps that is why in Spain it is strengthening its presence with new stores.The company has 17 establishments that bought Worten distributed in various Spanish provinces.Mediamarkt has already inaugurated more than half of this bouquet so far this year.

His reinforcement in the country goes one step further and in April he opened the first store in Spain ‘Service Point’.This new store concept has been established at the Splau Shopping Center, located in Cornellà de Llobregat.This point has 18 square meters and uses two people and is dedicated to the repair and maintenance of electric scooters.This service point is located in front of the Mediamarkt store itself, on the ground floor of the center.

In addition, since August 16, Mediamarkt offers immediate iPhone repairs with original Apple pieces in 106 physical stores and through its central hub in the Madrid town of Pinto.The service, which was implemented in Germany at the end of 2020, will also begin to be available in the rest of European countries where they have a presence.In this way, the German company has become Apple Authorized Technical Service.

Mediamarkt has demonstrated once again that it is not silly, as its motto says.The company has managed to interpret changes in consumption habits and adapt to them.With the rise of ‘ecommerce’ the company has seen that its concept of large stores no longer makes much sense.This added to the problems in sales of northern Europe make them need a change while entrusting Spain and Italy to increase their benefits.