Ceconomy’s decision to dispose of the Russian operations to Safmar and, simultaneously, acquire a 15% stake in its subsidiary M.Video is a good strategic step but at a very high cost. Management needs to solve the Kellerhals issue and improve the operating performance in order to regain investors’ confidence in the stock. Not forgetting, product pricing and customer convenience will remain vital to survive the likes of Amazon, especially on the home turf.
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Strategy switch in Russia
Ceconomy’s decision to dispose of the Russian operations to Safmar and, simultaneously, acquire a 15% stake in its subsidiary M.Video is a good strategic step but at a very high cost. Management needs to solve the Kellerhals issue and improve the operating performance in order to regain investors’ confidence in the stock. Not forgetting, product pricing and customer convenience will remain vital to survive the likes of Amazon, especially on the home turf.