MediaMarkt has signed an agreement with Worten for the acquisition of 17 of its stores in Spain. The company will keep all the employees of the Worten stores (270 people), in addition to the subrogation of the premises where they are located.
With the signing of this agreement, MediaMarkt assures that “it enhances its commitment to make technology available to its customers, expanding the network of convenience stores to reach places where it was not present before.” The agreement will strengthen MediaMarkt’s presence in areas such as Catalonia (7 stores) and Andalusia (4 stores) and will allow it to debut in cities such as Melilla, Zamora and Marbella.
“The planned acquisition of 17 Worten stores in Spain fits perfectly with our strategic goals of being the first choice as a trusted retailer for bespoke solutions in a world driven by technology,” said Alberto Álvarez Ayuso, CEO of MediaMarkt Iberia. “The proposed agreement also reflects our clear commitment to the omnichannel model; and order picking on the web.” Worten will remain only in the Canary Islands, with 15 establishments, a store in Madrid, and will bet on online business.
After the closing of the operation, MediaMarkt will have 7,000 employees in Spain and 106 physical stores, increasing its commercial area by 8% and reinforcing its position as the leader in the Spanish market.
The closing of the operation is subject to the authorization of the National Commission of Markets and Competition and is expected to take place in the first quarter of 2021.
Worten, which has suffered heavy losses since its arrival in the Spanish market, has made the decision to “accelerate the digitization of its business in Spain and focus efforts on its online channel, to ensure positive profitability in 2021.” Sales of the online store, according to the company, have grown significantly in recent years, “as a result of the company’s strong commitment to this channel.”
ongoing losses
The Portuguese chain of the Sonae group has bled to death in Spain with continuous losses, which has forced it to close 17 establishments and keep only 47, of the 60 it once had, betting fundamentally on online sales. Of the total number of closed stores, eleven were closed last year, three in January and another three last June. The company has gone into dissolution on several occasions and, according to its auditor, PwC, has not provided all the information required to guarantee a viability plan.
Although the chain has existed for more than two decades, Worten did not arrive until 2008, however, when it bought the 9 stores that Boulanger had and took over his business. As a whole, in the last two decades the chain has lost 385 million euros.
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