Coolblue will not go public after all for the time being. The reason: the current uncertainty in the financial markets. Despite this setback, the web giant still expects to have the financial clout to conquer the German market.
Coolblue had planned to go public this month. The aim was to raise EUR 150 million by doing so. However, unrest in the financial markets made investors cautious and Coolblue called off the IPO. Earlier, the FD reported that Coolblue faced problems in the run-up to its IPO. Non-public reports by banking analysts showed that the company was struggling with a shortage of staff and delivery staff at its distribution centre in Tilburg.
Even without an IPO and the accompanying financial boost, the web giant still intends to expand further in Germany. It already delivers in North Rhine-Westphalia, but plans to deliver washing machines, televisions and other appliances in the rest of Germany in the near future.
'Building logistics network is challenge'
Experts tell the Financieel Dagblad that conquering the German market is an attractive but not easy idea. For instance, German consumers are very focused on the lowest price, which does not directly match Coolblue's proposition. Moreover, competition from Amazon and other large electronics retailers is fierce there.
Coolblue can win over customers by offering excellent service, such as delivery and installation within 24 hours, believes Ruurd van der Weide of FSG. His company helps Dutch players grow in Germany. To the FD, he says that that service level will be a challenge. "Germany is big and to deliver within 24 hours, Coolblue needs to build a strong logistics network and finding drivers is not easy in Germany at the moment. But if Coolblue does succeed, it will be a unique selling point."
