Metro cash-carry

Metro Cash & Carry

Presented by:Áron Balázs Yiche Zhao

Metro Group history

• Established: 1964 in Mülheim• Founded by the two brothers Wilhelm Schmidt-Ruthenbeck

and Erwin Schmidt • International expansion: • 1968 - Netherlands • 1970 – Belgium • 1972 - Mediterranean countries • 1984 – Europe • 1991 – Africa • 1992 – Greece• 1994 - Poland and Hungary• 1996 – Shanghai• 2001 - Russia

Metro Group overview•Parts of Metro Group:

•Metro/Makro (Cash and Carry)•Media Markt (The German and European market leader in consumer electronics retailing)•Saturn (A huge selection of brand-name products at permanently low prices combined with competent customer advice and tailor-made service)•Redcoon.com (One of the largest specialist online discounters in Germany for consumer electronics)•Real (Real stands for a multifaceted range of food products offering a great price-performance ratio with a large share of fresh produce complemented by an attractive non-food assortment)•Galeria Kaufhof (Galeria Kaufhof GmbH is the management company of the department stores operated by METRO GROUP. These department stores are mostly located in city centres)

750 stores in 30 countries225.000 employees21 million customersCEO: Olaf Koch

Strategy

• Generating longrange, sustainable growth• Improve like-for-like sales and earnings• Optimising cost position and cash flow• Improving margins and reducing net debt• Creating value for the customers• Five focus points: • Transform• Grow• Improve• Expand• Innovate

SWOT Analysis

Strength

1. One of the top five largest retail chain in the world and largest in its home market, Germany2. Multi-store formats-convenience store, department stores, supermarkets, discount stores etc.3. Retail operations offered to commercial customers too in the format of cash and carry stores4. Huge brand equity and successful customer loyalty programmes

Weakness

1.Need of localisation of its stores across different cities and countries puts an additional pressure on operation costs2.Lower investments made by the retail chain in modernising its IT technology and systems for better automation of business

Opportunity

1.Seek growth through expansion into newer markets2.Emphaiss on private label growth3.Widescale advertising, promotions and customer loyalty programmes to increase business and loyal customers

Threats

1.Rising labour costs worldwide2.Threat from unionization of workforce in Germany3.Precarious economic condition in Euro zone and Americas

Competitors:

Metro in Hungary• 13 stores • Online shopping available• Club Cards• Service Points• Gastro academy• Corporate trainings • Bakery services• Catering

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Metro in China• 95 stores• Online shopping available• Club Cards• Service Points• Corporate trainings • Catering• Own brands

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Metro Cash & Carry• From the very beginning, the stores of METRO and MAKRO

Cash & Carry have focused on creating a tight bond between their local staff and the most important aspect of their business operations: our 21 million customers in 27 countries around the world.

ConceptSupplier / Manufacturer / Farmer

Metro Cash and Carry

Traders / Hotels / Cafes / Small businesses

Consumer / End user

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Metro Cash & Carry• professional customers such as hotel and restaurant

operators, catering and hospitality firms, independent small retailers, institutions and offices.

• 20,000 food items and up to 30,000 non-food articles provides customers with a unique one-stop shopping experience

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Metro Cash & Carry• The customer is the central focus of all products and services

provided by METRO Cash & Carry• For each of these customer groups, METRO Cash & Carry

offers customised assortments and services at an excellent value for money

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Metro Cash & Carry• METRO Cash & Carry’s flexible sales concept can be optimally

adapted to meet the specific conditions and needs of the respective countries

• Most of the stores have a selling space of between 6,500 to 8,500 square metres

• The key target group of hotels, restaurants and catering firms, and primarily offer fresh foods.

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Metro Own Brands• The six core own brands Aro, H-Line, Horeca Select, Fine Life,

Rioba and Sigma offer professional customers excellent value for money and thus real added value

• The own-brand ranges are developed in close collaboration with customers and suppliers and are the result of comprehensive market analyses as well as series of in-house and external laboratory tests

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Metro Own Brands• One successful example of METRO Cash & Carry’s own brands

is Rioba,which comprises tailor-made product solutions for cafés and bars.

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Thank you for your attention