Leading MediaMarktSaturn towards a customer-centred and service-driven future

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Dr Karsten Wildberger, CEO of CECONOMY AG and MediaMarktSaturn Retail Group, charts the course for the future

The Services & Solutions business segment generated sales of €302 million in the third quarter of 2022/2023 for MediaMarktSaturn, accounting for 6.5% of total sales. Can you explain the overall importance of this business segment for MediaMarktSaturn as well as your aims for the future?

We are transforming ourselves from a hardseller to a solution provider. Therefore, Services & Solutions is a key pillar in MediaMarktSaturn’s business model. We provide services spanning the entire product life cycle, forming a circular economy value chain. Growth and new capabilities of the Services & Solutions business are therefore central aims for the future.

How can Services & Solutions contribute to making retail more sustainable? How have consumers reacted to MediaMarktSaturn’s repair services and trade-in services for example?

Sustainability is a basic need that customers, and the younger target group in particular expects and demands from brands and companies. We see a clear shift in mentality towards sustainable and more conscious consumption. Sustainability is part of our company DNA and we support our customers in a sustainable lifestyle with energy efficient products and services to extend the lifecycle of a product. Our sustainable assortment, clearly marked with the Better Way logo, currently exceeds 4,000 products, already accounting for around 10% of our product sales. Our tradein service has been very well received: we have more than doubled the purchase of old appliances and exchanged 218,000 appliances for vouchers in the financial year 2022/23. We also carried out 3.2 million repairs in the last fiscal year.

THE SUBSCRIPTION SERVICE IS VERY IMPORTANT TO US, ENABLING US TO SECURE ATTRACTIVE RECURRING INCOME AND FOSTERING LONG-TERM RELATIONSHIPS WITH CUSTOMERS.

How is MediaMarktSaturn providing industry partners with new ways of presenting their products?

There’s more to us than simply displaying electronics online and offline. We want to create attractive experiences, showcase the products in a way that is true to life, and thus set ourselves apart from the competition. The best examples are our Experience Zones, which we are bringing to more and more stores across Europe. Here we invite customers to try out various innovative products. In addition, digital advertising formats are steadily gaining in importance and have already established themselves as the most relevant commercial B2C form of communication for addressing consumers. Retail media has therefore developed into one of the most successful and profitable digital advertising formats. With around 1,000 stores across Europe and our web stores, we are projected to build up a highperformance retail media business.

What can you tell us about the subscription service you’ve launched in Germany for repairs? Why is this a strategic area for growth?

We just launched a comprehensive and customer friendly proposition for domestic appliances, TV, audio and entertainment in Germany called myMediaMarkt Plus. This repair service is designed to provide customers with important extra value and “peace of mind” – all for a monthly fee in two variants: Limited or Unlimited. With the Limited variant, the customer can make use of two repairs in the current membership year, and with the Unlimited variant as many repairs as are required. In both cases, this is free of charge until the damage amount of 10,000 euros is reached, provided the devices were purchased from MediaMarktSaturn. We will also repair appliances that were not purchased from MediaMarktSaturn if they are already in the household at the time the membership is taken out – for an additional charge. This subscription service is very important to us, enabling us to secure attractive recurring income and fostering long-term relationships with customers.

What are MediaMarktSaturn’s future goals for Services & Solutions? What strategies will help you achieve them?

Services & Solutions has a high importance for our business model and future success. In June 2023 we presented our mid-term targets – also for Services and Solutions at the Capital Markets Day: by the financial year 2025/26 we aim to increase our operational Services & Solutions income to about €200M vs. FY 2021/22 representing about 5.5% of Group sales. The planned expansion of our offerings, which includes subscription services for extended warranties and software licenses, both online and in-store, will lead to dynamic income development. These initiatives will result in a higher profitability.

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