MediaMarkt relies on small XPress markets: digitization in retail

MediaMarkt relies on small XPress markets: digitization in retail

The race in retail is becoming increasingly exciting, especially for the electronics retailers who have to increasingly face online competition. MediaMarkt, one of the largest electronics retailers in Austria, is forced to reform his business model in order to continue to remain relevant. Those responsible have recognized that the large sales area is no longer the measure of things and would like to rely on smaller sales formats in the future.

Jan Niclas Brandt, Managing Director of MediaMarkt Austria, emphasized that the future is located in compact “XPress” markets that are to be opened up to ten times in the next five years. There are currently three such locations in Leibnitz, Gmunden and Fürstenfeld, which are intended to offer a sales area of ​​only 800 to 1,200 square meters. In contrast to the average branches, which are between 1,500 and 4,000 square meters. This step seems to be necessary in order to meet the increased demands of customers who are increasingly prefering online orders.

competitive pressure and adaptation of the business model

The current market situation for retailers is rather tense, not least due to the continuing economic recession and the associated reluctance of consumers. MediaMarkt recorded mixed sales figures in October, while the mood in November took a positive turn. Smartphones and television devices in particular have recently been deployed, while other areas such as IT products received less demand. Brandt noticed that consumers prepared for more products to buy on site instead of ordering online before the holidays.

The decision for the smaller market formats could also be interpreted as an intelligent reaction to the growing online trade. With a turnover of over 1 billion euros a year, MediaMarkt is the largest retailer of its kind in Austria and achieves around 25 percent of its sales via online sales and the "Click & Collect" method, where customers can order online and collect their purchases in the shop.

outlook and future projects

Another exciting project that is supposed to contribute to strengthening your market position is the planned gaming experience world Xperion. Brandt announced that the opening of a new location in Vienna will be on the agenda next year. This free experience world is intended to attract customers and offer a mixture of entertainment and shopping experience. "If everything goes according to plan, it could be so far," he added.

With the changing market conditions, MediaMarkt also has changes in the product range. In the future, health and hearing aids in particular could focus on, while the overall range will be more broader. Brandt emphasized that although one wanted to break new ground, but nevertheless a clear demarcation to platforms such as Amazon should remain. "But we won't make an Amazon from MediaMarkt," he promised.