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German electronics giant Ceconomy, which owns MediaMarkt and Saturn, has seen its sales rise in the past financial year. However, its margins are under pressure: the electronics chains are not able to pass on cost increases in full.
Better than expected
The holding company above electronics retailers MediaMarkt and Saturn posted a turnover rise of 1.9 % to 21.8 billion euros in the past broken financial year 2021/22. In doing so, the group did slightly better than expected, as the retailer itself had predicted a stagnation in sales.
Demand for large household appliances such as washing machines and refrigerators was particularly strong, as was that for telecom products. The company also managed to sell significantly more services, such as repairs and insurance. Online sales were still twice as high as before the pandemic, at 5.3 billion euros.
New marketing campaign
“Our robust development at the end of the last financial year shows that our measures are taking effect”, CEO Karsten Wildberger said. Increased marketing investments had a positive impact on sales in the fourth quarter, and the retailer is continuing on this chosen path with the new “Let’s Go” marketing campaign that was recently rolled out in thirteen European countries.
At the same time, Ceconomy points out that its margins did shrink. The retailer was unable to fully pass on increased costs to consumers. Nevertheless, the group says it is fully ready for the important peak period ahead, with Black Friday and the end-of-year festivities.
