German Metro Group intends to continue its investments into Media Markt's and Saturn's expansion outside of Germany. The money from the Galeria Kaufhof sale will be used to this end.
Modernize older stores
In an interview, CEO Olaf Koch said the group is contemplating expansion for Media Markt and Saturn, but also Metro Cash & Carry will have new stores lined up. Expansion might also occur in new markets, while the group will also have additional investments for its online channels and for the modernisation of older stores.
Hudson's Bay, the new Canadian owner of Galeria Kaufhof, has also indicated it will aggressively expand the department store chain's online activities. It hopes it has an edge over the pure online players like Amazon through its physical stores. German eCommerce's growth is tremendous and the country is even Amazon's second largest market, behind the United States. However, local chains are still lagging behind on their online shopping integration inside their stores.