MediaMarkt plans expansion: New XPress branches for quick purchase in Austria

MediaMarkt plans expansion: New XPress branches for quick purchase in Austria

The well-known electronics retailer MediaMarkt plans to further expand his business in Austria and relies on innovative “XPress” branches. These smaller shop formats are already represented in cities such as Leibnitz, Gmunden and Fürstenfeld. "The growth happens in small shop formats," explained Jan Niclas Brandt, the managing director of MediaMarkt Austria, in an interview with the APA. The "XPress" locations act as an important interface between online trading and physical purchasing, since they are also intended for Click & Collect.

In the next five years, MediaMarkt intends to open up to ten more of these more compact technology “local suppliers”. Compared to the traditional branches, which usually have a sales area of ​​1,500 to 4,000 square meters, the express shops measure between 800 and 1,200 square meters. Brandt explained that sometimes larger businesses are to be converted into smaller “XPress” locations, which is dependent on the respective location.

competitive factors and online trading

MediaMarkt has established itself as the largest electronics retailer in Austria with an annual turnover of over 1 billion euros and employs around 2,800 people in 56 branches. A significant part, about a quarter, of the turnover comes from the online business, which is becoming increasingly important. After several bankruptcies in the inpatient electronics trade in the past ten years, there have been only a few competitors, with Hartlauer being the only noteworthy competitor. Online competes with MediaMarkt against sizes such as Amazon and a variety of other online retailers.

The market environment is characterized by economic uncertainties. Consumers hold back, which was shown in mixed sales figures in October. Brandt noticed that the mood of consumers increased in November. Smartphones and television are particularly in demand, while the demand for IT products remains reserved.

new concepts and expansion

MEDIAMARKT puts great hopes for the upcoming Christmas business and is already planning for Black Friday, which falls late this year. Brandt emphasizes that many customers would prefer to buy on site the week before Christmas instead of ordering online. In addition, he also sees future potential in the area of ​​health devices and hearing aids and plans to continuously expand the selection. For 2025, a first attempt by a shop-in-shop model could start with a provider of health equipment.

In addition, MediaMarkt wants to win market shares in the Gaming area. A free gaming experience called Xperion may be opened in Vienna next year, which can be realized 2025 or 2026. This step would expand the presence of MediaMarkt in the entertaining segment and address younger target groups.