German electronics giant Media Markt will open fewer stores and focus more on its online sales, where it wants to emerge as a front runner.
10 % online sales
CEO Pieter Haas currently only sees physical expansion potential in Russia, Turkey and some German locations: he feels another 30 stores will be built, but several others will move or close.
The largest growth potential is online, he feels: "A little more than 20 % of German electronics sales is generated online", he told Süddeutsche Zeitung. Media Markt currently generates 7 % of its turnover online, but Haas wants to move that to 10 % in the next three years, sufficient to become a front runner in Germany.
It will also abandon its goal to be the cheapest all the time: "Price is still a very important issue, but the market has changed and a physical store can no longer be the cheapest as he has other costs than pure online players."