German electronics giant Ceconomy is leaning heavily on digital technology as it looks to cut costs by up to €130 million per year within two years.
The company outlined an extensive plan to make cost savings on an investor call today (30 April), which aims to standardise processes across the group. The programme will cost approximately EUR 150-170 million in this financial year.
One initiative will see more marketing activities moved online. The plan also includes centralising certain functions in shared service centres, as well as moving to a common IT platform.
Operational teams for MediaMarkt and Saturn will be merged to lift in-house synergies, such as in the operation and development of webshops.
CFO Karen Sonnenmoser said some of the savings would be reinvested, with an investment in the low double-digit millions into new skills such as in supply chain and logistics.
The company said negotiations with employee representatives were starting and that they might result in lay-offs in the mid-three-digit range across the group.
However, it said store closures and exiting countries were not in the scope of the reorganisation.
