Metro reduces cash & carry activities | RetailDetail

Metro reduces cash & carry activities

Metro reduces cash & carry activities

German retail group Metro is to withdraw its cash & carry activities from a number of countries. The resources this frees up, will be invested in a reorganisation of the company in home country Germany. The chain also wants to focus more on e-commerce, a trend Metro has missed so far.

Withdrawal from multiple countries

According to Lebensmittel Zeitung, Metro is to withdraw from Bulgaria, Egypt, Kazakhstan and Japan, where Metro suffers from severe losses. Earlier the cash & carry activities in the United Kingdom were also sold. A retreat from China would not be up for discussion: Metro is planning further investments in that region in the future.

 

The decrease of the number of countries where Metro – an umbrella company for Makro, Saturn and Media Markt – is active is in part forced: the company has insufficient financial power to support the expansion in 28 countries at the same time.

 

The most work is to be done in Germany: in the first quarter of 2013 sales of cash & carry dropped by 4.0%. To see the company grow again, management has set sixteen priorities, such as simplifying processes to finding new synergies.

 

New reshuffle at top of Metro

The planned reorganisations go hand in hand with a shuffle of management: Antonio Baptista of Real gets transferred to the parent company to get the slacking non-food department in order. He will have to do this country by country and while reporting directly to CEO Olaf Koch, who has also taken control of cash & carry.

 

The company also wants to expand e-commerce as one of the pillars for future growth. That will not be an easy task, as it could cannibalise a part of the existing activities in the shops.

Questions or comments? Please feel free to contact the editors


Are Chinese prisoners working for H&M and C&A?

20/02/2018

British former journalist Peter Humphrey has accused C&A and H&M of using forced labour. He claims to have seen how Shanghai prisoners were forced to work for Western chains, something the retailers will now investigate.

Chanel acquires stake in online retailer Farfetch

19/02/2018

French fashion label Chanel obtained a minority stake in British Farfetch. It wants to use the online retailer’s expertise to create more digital innovations for its own customers.

Monoprix wants to acquire web shop Sarenza

19/02/2018

Store chain Monoprix, part of French Groupe Casino, entered negotiations to acquire online shoe seller Sarenza, one of France’s prime online brands.

Zalando expands collaboration with German retailers

16/02/2018

Zalando has further expanded its collaboration with physical retailers in Germany. Shoe stores were already able to ship through Zalando and now clothes stores can too.

Kiabi opens largest Belgian store in Westland Shopping Center

15/02/2018

French clothing chain Kiabi will open its fifth Belgian store in the Westland Shopping Center in Anderlecht. This will become its largest Belgian store to date, spread across 1,800 sqm.

H&M warns for difficult 2018

15/02/2018

Swedish fashion group H&M warns that 2018 could be yet another difficult year for the company. It is working to improve online sales, but store turnover will most likely continue to drop.

Back to top