Revenue Decline for the Expert - Anticipation for Fresh Opportunities - Decline in Expert's Revenue - Anticipation of Fresh Momentum
In a surprising turn of events, German electronic retailer Expert has reported a revenue loss of approximately 80 million euros in the fiscal year, bringing the total to 2.15 billion euros. This marks the first time Expert has performed worse in the market comparison than its competitors.
The group has identified areas for improvement, particularly in the online business, which has fallen short of expectations. Despite a lack of specific information regarding the causes of the revenue loss or Expert's new strategies for the current fiscal year, insights into broader market trends and consumer behavior can offer some context.
Recent data indicates a mixed consumer climate in Germany, with improved economic and income expectations but an increasing willingness among Germans to save rather than spend. This cautiousness, coupled with persistent economic uncertainty, can lead to reduced discretionary spending on electronics. According to McKinsey’s 2025 consumer report, consumer sentiment is no longer neatly aligned with spending, and many shoppers are prioritizing value, quality, and trust before making purchases.
Competition from online retailers and marketplaces, as well as price comparison tools, also puts pressure on margins and reduces footfall in traditional electronics stores. Consumers may be postponing purchases of big-ticket electronics due to economic concerns, or switching to online platforms for convenience and better deals.
In response to these challenges, best practices and trends suggest several potential directions for Expert. These include strengthening both online and in-store experiences, utilising data analytics and AI-powered tools for customer engagement and personalisation, offering compelling financing options, exclusive bundles, and trade-in programs, collaborating with manufacturers to bring innovative, high-demand products to market quickly, and emphasising eco-friendly products and services, which are increasingly important to German consumers.
While these strategies are not specific to Expert, they reflect current industry trends and likely strategies for retailers facing similar revenue headwinds in the German electronics sector. Expert, as the second-largest electronic specialist retailer in Germany, operates 65 stores under its own management, many of which are in the northwest. The company has also expanded its in-house brand Kendo to include monitors and accessories, which are expected to provide new impulses.
Despite the fiscal year's disappointing results, CEO Stefan Müller described it as "no cause for celebration." The group plans to invest in digital tools, data structures, and a new sales organization to address the challenges faced. The ongoing business is accompanied by a campaign featuring football legend Rudi Völler, who remains the brand ambassador and appears in TV spots and social media as the "technology neighbor."
As Expert continues to navigate the shifting landscape of the electronics retail sector, it will be interesting to see how these potential strategies are implemented and whether they lead to a turnaround in the company's fortunes.
- In the face of dwindling revenue, EC countries' retailers like Expert might consider incorporating vocational training programs for their employees, as this could improve online business performance by enhancing customer engagement and service, given the increasing preference for value, quality, and trust among consumers.
- As Expert strives to regain its competitive edge in the German electronics market, it might benefit from integrating technology in innovative ways, like using AI for customer personalization, or even partnering with sports personalities such as Rudi Völler, to appeal to a broader audience and foster brand loyalty.
