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<strong>METRO</strong> GROUP : ANNUAL REPORT 2011 : STRATEGy<br />

→ sTRaTeGIC posITIonInG oF MeTRo GRoUp : Real<br />

Metro Cash & Carry continues to focus its expansion on the<br />

growth regions of eastern europe and asia.<br />

Real 422<br />

a comprehensive range of food including a large share of<br />

high-quality fresh items, a broad assortment of nonfood<br />

products and an attractive price-performance ratio: these<br />

are the strengths of our Real sales division. Real is among<br />

Germany’s leading hypermarket operators. It also has stores<br />

in poland, Romania, Russia, Turkey and Ukraine. The 426 hypermarkets<br />

have up to 15,000 square metres of selling space. In<br />

these stores, customers find all the products that cover their<br />

daily needs under a single roof – just as the advertising<br />

slogan says: “one store, you won’t need more!”.<br />

Real generates three-fourths of its sales with food items. The<br />

centrepieces of its product range are fresh foods, including<br />

fruit, vegetables, meat, sausage, fish and cheese. Real also<br />

offers a wide range of nonfood items, including electronic<br />

devices, household products and textiles. Customers can find<br />

up to 80,000 different items in every Real hypermarket. To<br />

increase profitability over the long term, Real has been<br />

pressing forward with its realignment since 2008. against<br />

this backdrop, it continued to adjust its costs and structures,<br />

optimise its sales network and further sharpen the profile of<br />

the Real brand in 2011.<br />

gaining an edge on competitors<br />

one of Real’s key long-term success factors is its high level of<br />

customer orientation. This involves the selection of products,<br />

as well as quality and freshness, prices, product displays and<br />

services. Because customers place a high priority on the<br />

product groups of meat, fish, sausage and cheese, the sales<br />

division is systematically expanding its fresh-food expertise.<br />

Real’s goal is to establish the best image in Germany. a<br />

number of awards presented to the sales division during the<br />

reporting year testify to its success. In June 2011, the trade<br />

publication lebensmittel Zeitung awarded Real the salescup<br />

in the category in-store promotion for its bakery concept, calling<br />

the hypermarket in Wiesbaden a pioneer in Germany’s<br />

food retail business. also in June 2011, the store located in<br />

the Rheinpark-Center in neuss won the so-called Cool-Cup<br />

for Germany’s best refrigerated foods section, an award<br />

that was presented by the trade publication Rundschau für den<br />

lebensmittelhandel. The hypermarket in Karlsruhe-Durlach<br />

was named “fish counter of the year 2011”, an award that is<br />

handed out each year by the trade publication lebensmittel<br />

praxis. Finally, the more than 70,000 readers of the magazine<br />

“Meine Familie & ich” nominated the Real store in passau as<br />

one of Germany’s ten best hypermarkets.<br />

In addition, the results of the customer barometer 2011 demonstrate<br />

that Real continued to improve in key aspects such as<br />

friendliness, competence and staff availability. The customer<br />

barometer is a telephone survey of about 34,000 German consumers<br />

which Real conducts once a year, most recently in<br />

January and February 2011. The survey questions address<br />

service aspects that are very important to Real, including the<br />

friendliness and competence of its staff, waiting times at<br />

checkouts, quality, cleanliness and product availability. These<br />

features provide the basis for the calculation of a performance<br />

index. In addition, Real has used additional indexes to measure<br />

the trust and loyalty of its customers since 2010.<br />

Own-brand products strengthened again<br />

With the three own brands “real,- QUalITY”, “real,- BIo”<br />

and “real,- seleCTIon”, the sales division offers its customers<br />

an alternative to traditional brand products priced in<br />

the medium to upper ranges that is both inexpensive and of<br />

equal quality. With “Tip”, Real also offers one of Germany’s<br />

most well-known private labels in the budget price segment.<br />

In 2011, Real offered about 4,000 own-brand products<br />

in its assortment – about one-third more than in the previous<br />

year. The products that Real sells under its own name<br />

help to sharpen the brand’s profile. In addition, Real further<br />

increases its gross earnings because the margins for ownbrand<br />

products are better than they are with traditional<br />

brand products. With a broad selection of own-brand products,<br />

complemented by many items made by well-known<br />

companies, Real optimally meets the diverse needs of<br />

its customers.<br />

Upgrading of stores moves forward<br />

→ p. 049<br />

To make its hypermarkets more attractive to customers, Real<br />

is systematically modernising its stores as part of the sales<br />

division’s new strategic focus on Germany. among the steps<br />

being taken as part of this effort, the sales division is integrating<br />

concept modules into its stores. These are product<br />

groups that are showcased together in a uniform manner. The

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