Smaller store concept pushes Ceconomy profits higher

Ceconomy, the parent company of MediaMarkt and Saturn, is becoming more profitable as its focus on smaller shop formats, a modernised retail concept and its marketplace proves successful.

Xpress success

In the past financial year, which ended on 30 September, Ceconomy saw its comparable sales rise 4.1 % to 22.4 billion euros. The retailer has been growing for four consecutive financial years, albeit at rather modest rates. More importantly, the company has now improved its profitability for seven quarters in a row. CEO Karsten Wildberger expects profits to come in between 290 and 310 million euros, which is at the upper end of previous expectations.

Ceconomy attributes the good figures to its successful modernisation programme: the retailer has already renovated two-thirds of its shop fleet, and aims to reach 90 % by September 2026. Unprofitable shops will close, while more stores will be converted from Saturn to MediaMarkt. There will also be more small Xpress shops and the retailer will develop a shop-in-shop concept for in Galeria department stores. The online marketplace is also giving the group further growth.