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At the same time, the network of suppliers also<br />
in the cash-and-carry segment is growing increasingly<br />
dense. For example, the number of<br />
C&C outlets rose by almost 4 percent in 1996<br />
alone to about 400 stores throughout Germany.<br />
Despite this difficult environment, Metro C&C<br />
maintained its leading market position in Germany<br />
in this type of trading outlet. With the<br />
opening of two Eco stores in the fourth quarter<br />
of 1996, a new specialty wholesale concept<br />
operating on a cash-and-carry basis is being<br />
tested. If it proves successful, more stores based<br />
on this principle will be opened.<br />
Sigma Bürowelt added another two specialty<br />
stores to its existing network of seven.<br />
As part of continuing internationalization efforts,<br />
C&C outlets were opened in China (Shanghai)<br />
and in Romania (Bucharest). The selling space<br />
was expanded by 42,210 m² to 715,471 m².<br />
Further improved result from<br />
ordinary operations<br />
The division increased the 1996 result from<br />
ordinary operations by DM 30.0 million to DM<br />
420.0 million, up by 7.7 percent from the previous<br />
year.<br />
The fact that improved pretax profit was generated<br />
despite falling sales is the result of welldirected<br />
management of personnel expense<br />
and cost of materials. In addition, continuing<br />
synergy projects in the <strong>Group</strong> contributed another<br />
DM 26.6 million to pretax profit.<br />
30<br />
Strategic capital spending at home and abroad<br />
Compared with the previous year, capital<br />
expenditure rose by DM 72.7 million to DM<br />
134.0 million (up by 119 percent), of which<br />
expansion in China and Romania accounted<br />
for about DM 50 million. In addition, capital<br />
spending went into the fresh-food concept at<br />
C&C stores and into new outlets.<br />
Workforce rises thanks to expansion<br />
The number of employees within the whole<br />
division, translated into full-timers, averaged<br />
17,583, including 686 full-time staff engaged<br />
in new activities abroad.<br />
Concentration on core capabilities and<br />
international expansion<br />
Great importance is being attached to the expansion<br />
and further development of the freshfood<br />
concept, the aim being to improve efforts<br />
to meet the needs of the restaurant and catering<br />
trade, the hotel industry, and the food trade.<br />
Internationalization of the C&C concept is continuing<br />
through the opening-up of markets in<br />
the P.R. China and in Romania. Initial results<br />
are in line with targets, endorsing the decision<br />
to access markets in economic regions undergoing<br />
structural change.<br />
At the end of the fiscal year, the BLV wholesale<br />
delivery business was sold, consistent with the<br />
policy of concentrating the portfolio on the<br />
<strong>Group</strong>’s declared core specializations.
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