E-commerce is growing and thriving, while sales in physical stores are declining.
German consumer electronics retailer Media Markt continues its program to streamline its business. The company is closing 13 large-format stores under the Media Markt and Saturn brands and cutting about a thousand jobs domestically. The retailer is also conducting a staff reduction program in Belgium, although all the country stores continue to operate.
According to Retail Detail magazine, retail chains Media Markt and Saturn informed their employees about closing thirteen stores by September 2021. The main reason that prompted the German giant to cut physical retail was the digitalization of the business - e-commerce is growing and thriving, while sales in physical stores are declining. The trend has developed all the more since the pandemic began around the world.
Media Markt and Saturn's parent holding company, Ceconomy, which owns the retail business, expect to cut spending on leased retail space. The company does not rule out further reductions in classic formats in the future. The company currently has 419 hypermarkets under management.
The first time a large-scale reorganization of business in Media Markt has been announced for August 2020. About 3,500 jobs across Europe were at risk amid reports of impending closures. In Belgium, the retailer is cutting jobs both in the head office and in retail stores. In the future, decisions on possible reductions will be made individually within each market.
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