The German economy is stumbling: job cuts and bankruptcies are the order of the day. The head of Mediamarkt and Saturn, on the other hand, is confident. In the interview he explains why that is.
Berlin’s Alexanderplatz is a beautiful symbol of the problems of German retail: Galeria is trying to get by after its third bankruptcy, but all locations cannot be retained. The fashion chain Esprit has now closed all branches. In between there is also a Saturn branch and a media market in the adjacent shopping center.
In an interview with t-online, MediamarktSaturn boss Karsten Wildberger explains what makes him optimistic about the current economic situation, how he wants to continue to attract customers to his stores and why he believes collaboration with German automobile companies is possible.
t-online: Mr. Wildberger, do you see a future for your electronics stores in city centers?
Karsten Wildberger: Clearly: yes. Overall, I believe in the future of German city centers, but retail must develop with customers and offer them something. We see in many European countries that city centers function very well. We are well represented at Alexanderplatz, for example with our first MediaMarkt Lighthouse in the Alexa shopping center, a real technology experience. We recently renovated the space and are now seeing 25 percent more customer visits.
The Saturn directly at Alexanderplatz is also running excellently. There is also the Xperion – our gaming store – on 2,000 square meters. We also have some ideas about how we can make Alexanderplatz more attractive and lively again through investments.
Can you be a little more specific?
I could imagine a large 3D screen. Such displays are on the rise in other countries and are very well received by passers-by and residents. In German cities, however, we have so far encountered a lot of skepticism with this proposal. But the mayor of Berlin spontaneously showed great openness. That impressed me. I’m excited to see what we can achieve here.
You just spoke quite naturally about Mediamarkt and Saturn. However, many customers may not be aware that the two are not competitors, but have been part of the same group since 1990. Why are both brands continued?
Mediamarkt and Saturn are two strong brands. I see them as siblings in the same family, each with their strengths and their regular customers. This makes a lot of things more efficient in the background.
We have standardized our procedures and processes. For example, we organize the advertising campaigns for both brands together. This also improves inventory and availability.
After the many complaints from retailers in recent years, you sound unusually optimistic. How do you continue to attract customers to your stores?
We don’t just offer customers a shopping opportunity, we also offer experiences. Three weeks ago we opened our largest store to date in Hamburg with 15,000 square meters. This is a real technology experience center. There are 50 boutiques from partner brands. On the top of the four floors, 3,500 square meters of Xperion are set up just for gaming. The demand from our partners is huge and the feedback I receive from customers and partners is extremely positive. This shows that innovation in retail works.
Born in Gießen in 1969, Karsten Wildberger studied physics in Munich and Aachen and then received his doctorate in the field of solid state physics and computational physics. After working as a consultant at Boston Consulting Group, he held various management positions at T-Mobile, Vodafone and Telstra. From 2016 to 2021, Wildberger was a member of the board of the energy company E.On. Since August 2021 he has been Chairman of the Board of Ceconomy AG and Managing Director of Media-Saturn-Holding GmbH.
A classic argument for stationary retail is customer service. Does this still play a role in your experience markets?
That’s definitely part of it. It always starts with good advice. We have also improved significantly in recent years. We will continue to improve here.
It’s not just your own staff who work in your electronics stores. There are also a number of promoters of individual companies who sell products or contracts. Is this still independent advice?
Promoters are particularly knowledgeable about the products they specialize in and can provide expert advice. But we also make sure that they are part of the overall team. Our goal is to offer the customer what he needs and to help him in the best possible way. Because only a satisfied customer comes back.