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operate as Galeria Kaufhof and Kaufhof and in Belgium as Galeria Inno. The Real hypermarkets<br />

stock some 80,000 items. Franz Haniel & Cie, an international trading and services group, pushed<br />

ownership of Metro from 19% to 34% in 2007 and now controls an asset pool formed with another<br />

large shareholder, together overseeing 50.5% of Metro, including its group strategies. (Franz<br />

Haniel also owns Celesio, a drugs distributor, listed in this database.) Metro also has real estate<br />

interests.<br />

EB Identities: Six core brands at Metro C&C --Aero (foods), Fine Food, Horeca Select (article for<br />

professional kitchens,), Rioba, H-Line (items for hotel operations), and Sigma. At Real<br />

hyperarkets--real,-QUALITY, real,-BIO, real, -SELECTION (premium quality foods), and TIP<br />

(budget food and nonfood line). At Media-Saturn, two brands--’ok’ a budget range and KOENIC<br />

high quality small and large household appliances. At Galeria Kaufhof department stores there are<br />

24 brands, including manguum, Rover & Lakes men’s wear, Tarrington House (bedding), etc.<br />

EB skus: 5,000+ (E)<br />

Profile: After a strong performance in 2010, Metro has weakened since then. Its net profits for<br />

2011 were off by 20.9% to € 7441 million. The company has looked to its own brands,<br />

consolidating the number of brands and expanding the selections, while also sharpening its store<br />

operations and developing new store formats. In Poland, for example, there are now 9 satellite<br />

MAKRO Plunkt stores (each selling 2,000+ foods, beverages and non-food products in a 1,500<br />

square meters area) with plans to roll this concept out into Bulgaria, Croatia, Romania, Serbia, and<br />

the Ukraine. In 2011, Metro opened 37 wholesale and satellite outlets, while there were 57 new<br />

Media-Saturn openings. Some 45 Galeria Kaufhof stores were remodeled as well. Since 2009,<br />

Metro has focused on six core own brands in its Cash & Carry stores. During the year, those sales<br />

rose by 2.4% to take a 15.7% share of sales in that chain. The Media-Saturn chain has just<br />

introduced the PEAQ brand for consumer electronics sold in Austria, Belgium, Germany, Italy<br />

and the Netherlands; while a new ISY brand for accessories appears in stores in Austria and<br />

Germany. The Galeria Kaufhof merchandising strategy called for a complete overhaul of the<br />

manguum own brand, while integrating other brands such as Miss H into that collection. Plans call<br />

for this chain to reduce its own brand count fro 24 to 20 brands by the end of 2012.<br />

UPDATE: Results for 2012 showed total sales up by only 1.2%, keeping total net sales the same at<br />

€ 66.7 billion. When adjusted for divestments during 2012, net sales rose by 2.3%. Metro in May<br />

sold 30 MAKRO UK stores to Booker Group (also in this database) for £ 15.8 million cash. In<br />

November, Metro divested 91 Real hypermarkets in four eastern European countries (Poland,<br />

Romania, Russia and Ukraine) selling them to Auchan of France (also in this database). Auchan<br />

already operates 98 stores in these markets. In December, Metro’s 34 Saturn outlets in France<br />

were sold to HTM Group. Plans to sell Galeria Kaufhof were suspended in January 2012 because<br />

of market conditions. In January 2013, Metro disclosed plans to end its consumer electronic plans<br />

in China.<br />

Procurement Contacts: Heike Fastenrath, International Coordinator (Metro C&C International,<br />

Dusseldorf) Tel: +49-211-9690<br />

METRO INC.<br />

11011 Maurice-Duplessis Blvd., Montreal, Quebec H1C 1V6, CANADA

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