Ceconomy made one third of profits online
Ceconomy, the German mother company of electronic stores such as Mediamarkt, made one third of its profit from online sales in 2020. Their online revenue increased more than half in the last year. The numbers are clearly a result of coronavirus-related measures.
Ceconomy runs more than 1 thousand stores in consumer electronics in twelve countries in Europe, such as Germany, Austria, Switzerland, Hungary and the Netherlands. While a lot of their stores had to close due to lockdown measures in the pandemic, online sales soared.
Over 30 percent of profits online
The company’s total revenue increased in 2020, from 20,8 to 21,3 billion euros. This is in large thanks to online sales, which now account for over 30 percent of profits. In the year before, online sales made up just 20 percent of the company’s revenue. Moreover, online profits grew more than 60 percent to almost 7 billion euros.
Online sales now account for 30 percent of profits.
The company’s result, however, remains relatively unchanged. Their earnings before interest (ebitda) will probably land between 210 and 250 million euros.
Italy, Spain and Turkey outperformed other markets
There were large differences between European markets. Because of longer lockdowns, Germany and the Netherlands performed badly. In contrast, Italy, Spain and Turkey did well, compensating for the lesser performing markets.
Peak season and post-covid supply chain
In their press release, Ceconomy says it wants to further execute and accelerate its omnichannel strategy. Furthermore, the company wants to focus on the upcoming peak season, while taking into account possible supply chain problems in the wake of Covid-19.
Ceconomy wants to accelerate its omnichannel strategy.
“Looking ahead to Black Friday and the Christmas period, we recognize the existence of supply chain uncertainties currently affecting our industry. Nevertheless, we are well prepared to serve our customers in the best possible way – and are determined to do so”, says CEO Dr Karsten Wildberger.