19 January 2010

Metro Group-owned consumer electronics retailer Media-Saturn is now preparing to launch its own private label range, The Financial Times Deutschland reported, quoting unnamed sources close to the retailer. This follows its recently failed attempt to acquire Privileg, Germany’s largest household goods private label from fellow retail group Otto. Media Markt is Europe’s largest EEO specialist retailer.

According to the report, some basic characteristics of the new range, which will put a number of small and medium-sized suppliers under pressure, have already been agreed on. These include the launch of both household goods and entertainment electronics lines; the use of one single brand for both the Media Markt and the Saturn banners; and the international roll-out of the label across all European operating markets.

However, the precise date of the launch and the targeted private label share of sales remain open at this date, according to the report. A key challenge for Media-Saturn will be developing consumer trust in its new range. This is likely to require considerable resources as it is a new label, making Media-Saturn’s move into private label more time-consuming than it would have been under the use of the well-established Privileg label.