It's no secret that retail at the moment is excruciatingly hard, but why has Metro Group switched from up-beat to gloom after Q1/Q2? It's not all about Media-Saturn, that's for sure...
This text below is direct from Metro's own 2012 H1 business report and it suggests the Media-Saturn business was never easy this year. Media-Saturn were more than 100 million euro off EBIT from last year (and deep in the red) even as the global HQ was reporting a rosier outlook (presumably based on their other assets).
One significant point is that only 3.8% of total sales were generated online which does not compare well with other CE retailers today (In January 2012, Dixon's Group published its online sales as 19% of business; sure, the online sales can be affected by markets-served as some cultures are more pre-disposed to web buying but the trend line is clear.)
Follow the Metro Group 2012 H1 report on Media-Saturn (immediately below) and decide for yourself...
METRO GROUP FINANCIAL REPORT-- SECTION ON MEDIA-SATURN
"From January to June 2012, sales of Media-Saturn climbed by 2.3% to € 9.5 billion (in local currency: +2.5%) against the backdrop of a persistently difficult economic situation. The online business continued its dynamic growth owing to the acquisition of Redcoon and the successful launch of the German multichannel offerings. Online sales climbed to € 322 million (H1 2011: € 41 million). In the 2nd quarter, sales rose significantly by 4.5% to € 4.5 billion. Quarterly sales also benefitted from the successful marketing campaigns in the framework of the European Football Championship.
In Germany, H1 2012 sales rose by 5.5% to € 4.4 billion. Like for like, sales climbed by 1.1%. In the 2nd Quarter, Media-Saturn sales grew by 11.4%, also owing to the acquisition of Redcoon. Like for like, the sales growth came in at 6.8% - the highest value since the 1st quarter 2009. The European Football Championship led to a resurgence of sales, especially of large-format TVs. The product offering on the Internet was further extended and now comprises around 4000 articles at Mediamarkt.de and over 5500 at Saturn.de. At around 40%, the store pick-up rate remains at a high level. Aggregate online sales during the period from January to June 2012 came in at € 164 million. Thus, 3.8% of total sales were generated online.
In Western Europe, H1 2012 sales declined by 2.5% (in local currency: -3.0%), also due to the divestment of Saturn France. The challenging macroeconomic situation significantly weighed on demand for consumer electronics, especially in the Southern European countries. However, Media-Saturn succeeded in extending its market share in this environment. Online sales in Western Europe continued to develop dynamically and reached € 149 million.
In Eastern Europe, H1 2012 sales climbed significantly by 5.7% to € 1.2 billion (in local currency: +9.5%).
In Asia, sales rose significantly due to the opening of further test stores.
EBIT before special items dropped to € -79 million (H1 2011: € 22 million). In addition to the sales-related decline in earnings also the further sharpening of the price profile as well as lower advertising subsidies had a negative effect on earnings. Other factors contributing to this were higher expansion costs, higher start-up losses and costs for the further expansion of the multichannel business. In the Q2 2012, a significant improvement of operating earnings in Germany contrasted with a drop in earnings, especially in Southern Europe."