EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Profile: In the recent past, Metcash has experienced a rise and fall in its fortunes. The decline
began in 2004, when its debts grew and, despite continued growth up until 2008, its cash flow was
squeezed. In adopting a hybrid wholesaler/retailer strategy, however, its equity grew. But the
store count remained stagnant, prodding IGA of the US (also in this database) to end its
partnership with Metcash (acting as an IGA owning wholesaler). In 2011, looking for cash,
Metcash sold its franchise unit (some 265 stores involved) to Shoprite OK Franchise Division.
This involved store banners such as Friendly, Seven Eleven, Price Club Discount, etc. Also,
Metcash announced plans to close down 56 stores starting on April 9, 2011 and including Metro
Cash & Carry and Trade Centres as part of its restructuring and rationalization strategy, Its
strategy now calls for opening a new range of hybrid stores which are expected to bridge the gap
between retail and wholesale.
Procurement Contacts: N/A
METRO AG
Schlüterstrassel, 40235 Dusseldorf, GERMANY
Tel: +49 211-68860
Fax: N/A
www.metrogroup.de
Group 2011 Net Sales: $92.7 Billion (€ 66.7 Billion) -0.8%; Sales at Metro Cash & Carry: $43.4
Billion (€ 31.2 Billion) + 0.2%; Sales at Real Hypermarkets: $15.6 Billion (€ 11.2 Billion) -2.3%;
Sales at MediaMarkt/Saturn Electronic Chains: $28.6 Billion (€ 20.6 Billion) -0.9%; Sales at
Galeria Kaufhof Department Stores: $4.9 Billion (€ 3.5 Billion) -3.7%
Percentage of Sales in Exclusive Brands: 15% (E)
Principal Business: Metro Group, a retail and wholesale operation, oversees a total of 2,187 stores
in 33 countries in Europe, Asia, and Africa. Traded on the Frankfurt Stock Exchange, Metro
operates four divisions: 728 Metro Cash & Carry self-service warehouse stores in 30 countries,
426 Real hypermarkets in six countries, 893 MediaMart & Saturn electronic stores in 16 countries,
and 140 Galeria Kaufhof department stores in two countries. Metro/Makro Cash & Carry
warehouse stores cater to commercial and wholesale customers, stocking 50,000+ products per
store, about 20,000 in foods. C&C has three formats: Classic 10,000 to 16,000 square meters in
Western Europe; Junior 6,500 to 8,500 square meters—strongest in Eastern Europe and Asia; and
Eco 2,500 to 6,500 square meters (emphasizing fresh foods)—strongest in France, southern
Europe, and Japan. Real hypermarkets, stocking 75% food items, range from 4,000 to 15,000
square meters, located in Germany, Poland, Romania, Russia, Turkey, and the Ukraine. Media-
Saturn, which is the No. 1 consumer electronics chain in Europe, sells up to 100,000 ites in its
flagship stores; while stores range fro 2,500 to 10,000 square meters. Galeria Kaufhof department
stores, ranging fro 7,000 to 35,000 square meters (some 50% of sales in own brand) in Germany