Electrical Goods Retailing – Germany – February 2019
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“Online retailers continued to gain share and retailers such as Amazon have used promotional periods (Prime Day and Black Friday) to put increased pressure on the store-based retailers. MediaMarkt Saturn, the market leader, has seen its market share fall, but we think that the pressure is greatest on the voluntary groups and they have all seen outlet numbers decline. The pressure on all electrical retailers will not relax in the foreseeable future and further rationalisation of the sector is almost inevitable. We are not saying that store-based retailing will disappear in the face of competition from online pureplayers, but we do think that it is likely to contract further. At some stage store-based and online-only players will reach some sort of equilibrium, but we are some way from that as yet.”
– Richard Perks, Director of Retail Research
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