In a press conference earlier today, German retailer Metro has shared its vision for the future. The group is aiming for growth via wholesale and e-commerce, but denies any rumours about a certain exit from Belgium and India.
Wholesale as a growth strategy
During its Capital Markets Day, a large-scale hybrid event with seven speakers from the executive committee, the company said it saw major growth opportunities internationally. The group’s total turnover should rise to more than forty billion euros by 2030, its EBITDA to more than two billion. To increase profitability, the retailer is aiming for a larger share of private labels, a smaller choice per type of article and a simpler presentation in the stores. For example, more than half of the products are simply sold on pallets.
Online, Metro wants to grow by opening its e-commerce platform to third-party sellers and expanding it to two new countries per year. Metro’s online turnover has already quadrupled in the past year, thanks in part to the success of the external sellers in the two countries where the new online platform is already operational. After all, they already make up about half of the total sales.
“Satisfied with shops”
The German company says it is satisfied with its existing store network, calling its store portfolio attractive and well-balanced. By turning stores into multichannel hubs to supply local customers, COO Rafael Gasset. This could also be the future for the Belgian stores, which are often well located to serve as a fulfilment centre. After all, a decision to close the Belgian (and Indian) branch has certainly not yet been made, CEO Steffen Greubel says.
Metro also prides itself on some successful transformation processes. In Romania, the group achieved a turnaround by reducing complexity, improving pricing and increasing productivity. In Italy – more specifically in Milan – a stronger focus on delivery from separate hubs is bearing fruit. In Spain, the group launched a successful loyalty program, MakroPlus, which is now being rolled out to more countries.
