METRO AG - METRO Group

Roller achieves satisfactory result
Roller (shareholding: 49.9 percent) saw its sales
rise by 10 percent to DM 1.2 billion as it continued
to expand. Sales on comparable selling
space fell by 6.0 percent, however. The Roller
investee comprised 59 stores with 382,583 m².
Apart from outlets in Germany, Roller also operates
self-collection furniture stores in Austria
and the Netherlands. Against the background
of continuing expansion and general consumer
resistance, Roller achieved a net result which
fell short of the preceding year.
Earnings burdened by restructuring measures
The Furniture Centers division’s income was
greatly affected by measures to restructure and
refocus Möbel Unger, with the integration of
the former Massa furniture outlets having an
especially adverse effect on the income. In view
of the unsatisfactory sales trend, the decline in
gross profit largely overabsorbed the savings
in personnel and impersonal expenses achieved
in the fiscal year. At Divi, conversion-related expenditure
for the integration of Massa furniture
centers led to a worse annual result. The loss
from ordinary operations (including Roller’s prorated
contribution) deteriorated from DM 85
million to DM 124.9 million.
Despite far-reaching restructuring measures,
the Furniture Centers division’s result for 1997
will not improve greatly on the preceding year
either.
Computer Centers
METRO AG
Additional information
The sales network of the Vobis Group, in which
METRO AG holds a 90-percent stake, currently
comprises 1,105 stores (including franchisees)
in 11 European countries with franchisees accounting
for altogether 75 percent. Vobis sells
computers and related accessories, including
its own Highscreen private label as well as the
brand products of other PC manufacturers. The
sales outlet structure developed according to
plan in 1996, the proportion of sales through
franchisees (excluding Real, Kaufhof) rising from
9.7 to 17.2 percent. The Vobis Group’s non-German
sales reached 28 percent.
Vobis increases sales to DM 3.14 billion
In 1996 Vobis consistently expanded its leading
market position in Germany and continued its
successful course. The companies belonging to
the Vobis Group (including wholesale business
with franchisees and Maxdata sales) registered
sales of DM 3.14 billion at home and abroad
(up 1.6 percent). A comparison should take into
account that the preceding year’s sales included
goods supplied to Metro Group companies.
Sales growth adjusted for this effect amounted
to 5.3 percent. Turnover of PCs in Germany
soared to 521,000 (up 27 percent), the volume
sold in Europe climbing to 721,000 PCs (up 18
percent). With its BTC (built to customer) assembly
method, the company enjoys a clear
competitive advantage. The technique allows
the customers to have their PC configured to
meet their personal requirements at the local
branch or by phone/the Internet. The PC is then
delivered inside 48 hours.
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