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Spanish tech giant MediaMarkt purchases 17 failing Worten stores

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LEADING technology and electrical retailer MediaMarkt has signed an agreement to acquire 17 failing Worten stores as their Portuguese rival records another year of losses. The agreement will see MediaMarkt launch itself into the driving seat as industry leader in big brand electronics and appliances across Spain."The planned acquisition of 17 Worten stores in Spain fits perfectly with our strategic objectives of being the first choice as a trusted retailer for tailored solutions in a world driven by technology," says CEO of MediaMarkt, Alberto Alvarez Ayuso.The takeover will include the relocating and reemploying of 270 Worten staff and the rebranding of the old stores.This will mean that MediaMarkt will increase its presence in Spain by 8% with a total of 106 stores and employing 2,700 people. It will also mean the introduction of flagship stores in Marbella, Melilla and Zamora.Since its introduction into the Spanish market in 2008, the company, owned by Portuguese group Sonae, has experienced losses consecutively, resulting is its partial dissolution in 2018. The dissolution, caused by a net loss of over 385 million over the 10 years, led to nine of its stores closing and 80 workers laid off.Since then, a further eight stores closed their doors, leaving now just 49 in Spain prior to the take over. In an effort to boost its sales and business plan, Worten is focusing on its online presence with a new online store that opened in September 2018 but has received an increase budget going into 2021. The releasing of 17 of its physical stores by MediaMarkt will now give Worten space to concentrate its assets on its online infrastructure. "The deal will aim to accelerate the digitization of its business in Spain and to focus efforts on its online channel, to ensure positive profitability in 2021," said a spokesperson from Sonae.
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