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Our strategy – the path to our goal

CECONOMY is the leading European platform for companies, concepts and brands in the field of consumer electronics. Our purpose: we develop solutions that make everyday life in the digital world easier for consumers.

Our strategic approach has three pillars

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Consistent customer focus

We ‘think customer’ – customer needs and expectations form the starting point for all our strategic thinking. 

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Solutions expertise

We provide solutions – wherever our customers interact with us: in our stores, online, on the move or at home. We are everywhere with our services. 

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All-round digitisation

We drive digitisation. It is only by digitising our own business model convincingly that we can offer optimum models for retail in the digital world. 

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Our medium-term goals

We have defined clear growth targets expressed in terms of financial year 2015/16. They include: 

// Average sales growth of more than 3 per cent. Up to 15 per cent of sales revenue to come from online business and around 10 per cent from Services & Solutions in the medium term.
// An increase in the EBITDA margin to around 5 per cent, starting from an EBITDA of 3.3 per cent of sales in financial year 2015/16.
// Annual cash investments of around 1.5 per cent of sales. Resulting in a cash flow conversion rate of between 60 and 70 per cent.
// A reduction in the tax ratio to around 40 per cent, from 49 per cent in financial year 2015/16.
// A dividend payout rate of between 45 per cent and 55 per cent of the profit per share. 

The elements of our strategy

Five value drivers for further growth

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Online and mobile markets: We make it possible for customers to use the services available through our stores and our mobile and online channels in whatever combination suits them. 

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Services & Solutions: We are continuously developing our service portfolio. The expansion of SmartBars in our stores for service and repairs is a key driving factor here.

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Customer data/customer relationship management: The customer is at the centre of our business model. This ensures that our communications to our more than six million customer contacts are personalised and tailored to their interests.

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Selective expansion: Changes in market and customer needs require us to adapt our expansion strategy and our portfolio of locations. Formats like shop-in-shop solutions offer alternative ways of ensuring even better market coverage.

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Supply chain, category management, pricing: Changes in market conditions require us to rethink which processes are best suited to centralised management and which should be decentralised.

Five basic conditions for our success
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Portfolio: We actively address challenges and optimise our portfolio of countries and locations where necessary. 

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Competitive cost base: We constantly check our cost developments and always aim for a competitive cost position. 

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Net operating assets: We optimise our net operating assets by keeping tight control of stocks and continuously improving our category management system. 

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Cultural transformation: We provide continuing professional development for our approximately 65,000 employees so that we can offer our customers a unique buying and service experience at all times.

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Cultural transformation: We provide continuing professional development for our approximately 65,000 employees so that we can offer our customers a unique buying and service experience at all times.




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