Ceconomy has ordered a corporate restructuring. The branches of the Media Markt and Saturn brands are to move together. But first of all, the conversion costs money.
The electronics retailer Ceconomy is reaping the first fruits of its corporate restructuring. The operational key figures improved in the past financial quarter. As a result, more customers came to the Media Markt and Saturn stores. The fast-growing business with device repairs, mobile phone contracts, insurance and rentals also developed positively. Ceconomy was able to gain market share in the German-speaking region.
The bottom line is that the Ceconomy group increased the loss – here the sale of the Swedish markets weighed on it. After a successful Christmas business, the measures continued to have an effect, commented CEO Karsten Wildberger on the development. Ceconomy has made significant progress. Sales increased in the months of January to March compared to the same period last year by 5.6 percent to 5.3 billion euros, as the company announced.
Ceconomy benefited from growth in stationary business, while online sales declined. In Germany, the largest single market, the company increased sales and earnings. According to the information, the main drivers were savings in marketing and logistics, since Media Markt and Saturn are increasingly being managed together. So there are no more separate advertisements.
The net loss rose to 15 million euros from 7 million a year ago. The sale of the Swedish stores had a negative impact of EUR 68 million. Ceconomy had already announced negative effects.
Source: Stern
