Media Markt and Saturn continue their cost-cutting course: in the German home market, 13 stores are closing, and 1,000 employees are losing their jobs. The retailer is also cutting some jobs in Belgium, but no Belgian outlets will be closed.
Saving on rent
Media Markt and Saturn have informed its German employees in a letter that 13 stores will close by September and some 1,000 jobs will be cut. This is reported by Lebensmittel Zeitung. The main reason is digitalisation: e-commerce is growing and flourishing, while sales in physical stores are declining. A common trend generated by the coronavirus pandemic.
By reducing the size of the store network, parent holding company Ceconomy hopes to save “considerably” on rent. Other stores will probably also be downsized in the future. At the moment, Media Markt and Saturn still have 419 physical outlets in their German home market.
In August last year, the electronics retailer already announced a large-scale international reorganisation. CEO Düttmann wants to simplify the organisational structure and centralise more so that local branches have less independence. Loss-making branches all over Europe would also have to close. It is estimated that around 3,500 jobs were at risk. It is not yet clear whether the 1,000 German jobs are included in that number.
In Belgium also, some jobs will disappear. It concerns 9 jobs at the head office in Zellik and 18 jobs in the stores, told spokeswoman Janick De Saedeleer to Belga. However, no Belgian stores will be closing, and the retailer hopes to avoid redundancies.