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 Media-Saturn, whose sprawling stores selling everything from washing
machines to laptops generate about a third of the revenues of retail
group Metro, has seen online competition from the likes of Amazon
steadily erode its business in recent years.
A dispute between majority owner Metro and Media-Saturn founder,
Erich Kellerhals, delayed the company's move online until 2010 and
it is now playing catch-up, trying to integrate its e-commerce
business with its stores.
"Big stores and low prices ...are no longer a guarantee of success,"
Wolfgang Kirsch, head of Media-Saturn in its home market Germany,
told a news conference on Thursday.
"Our new store is driven by the central principle of finding new
ways to combine the online and offline world in a new shopping
experience which really inspires the demanding customers of today."
The new Media Markt store due to open next week in the southern
German town of Ingolstadt is part of a broader trend among
traditional retailers to use technology to make better use of costly
store space to present a bigger range of goods.
British clothing retailer Marks & Spencer has developed a "virtual
rail" that allows shoppers in a small Amsterdam store to browse its
full catalogue on large screens, while German sportswear firm Adidas
uses digital "shoe walls" to present all its styles and colors.
The new Media Markt store features a huge video wall where customers
can navigate through all 60,000 products on offer online - compared
to the 45,000 available in the store - as well as a drive-in
facility behind the store where shoppers can collect orders made
online or by telephone.
It will offer shoppers free Wi-Fi and charging stations for
smartphones as well as digital navigation of the store.
Store staff will also demonstrate how gadgets can be used together,
for example how smartphones can work with baby monitors.
REASON TO VISIT STORE
Electronics firm Samsung has also recently launched a life-size,
touch-screen interface that allows customers to check out its full
range of fridges, washing machines and dishwashers.
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"Retailers will see multiple benefits," said Simon Hathaway from
Samsung marketing agency Cheil which developed the system.
"It allows them to show a full range in relatively small space and
creates a genuine reason to visit a store, something that many
struggle to deliver."
Media-Saturn, the world's second-biggest consumer electronics chain
after Best Buy with more than 950 Media Markt and Saturn stores in
17 countries, saw sales fall 1.3 percent to 16 billion euros ($20.6
billion) in the nine months to end June.
Online sales still only account for about 7 percent of sales, but
Kirsch said about 70 percent of customers already check out products
online before buying in the store, while almost half order online
and pick up in store.
Its main store rivals in Europe are Dixons Retail and Darty Plc, but
it also faces fierce competition from Amazon. British online
domestic appliances retailer AO World is also planning to launch in
Germany soon.
As it responds to that threat, Media-Saturn launched a new service
earlier this year to offer express home delivery of smaller items
like smartphones and laptops within 30 minutes, which it plans to
extend to large items in future.
(1 US dollar = 0.7762 euro)
(Editing by Elaine Hardcastle)
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