Metro Cash and Carry Business politics

1. Metro Cash & Carry
Presented by:
Áron Balázs
Yiche Zhao

2. Metro Group history
• Established: 1964 in Mülheim
• Founded by the two brothers Wilhelm Schmidt-Ruthenbeck
and Erwin Schmidt
• International expansion:
• 1968 - Netherlands
• 1970 – Belgium
• 1972 - Mediterranean countries
• 1984 – Europe
• 1991 – Africa
• 1992 – Greece
• 1994 - Poland and Hungary
• 1996 – Shanghai
• 2001 - Russia

3. Metro Group overview
• Parts of Metro Group:
• Metro/Makro (Cash and Carry)
• Media Markt (The German and European market leader in consumer electronics retailing)
• Saturn (A huge selection of brand-name products at permanently low prices combined with
competent customer advice and tailor-made service)
• Redcoon.com (One of the largest specialist online discounters in Germany for consumer
electronics)
• Real (Real stands for a multifaceted range of food products offering a great price-performance
ratio with a large share of fresh produce complemented by an attractive non-food
assortment)
• Galeria Kaufhof (Galeria Kaufhof GmbH is the management company of the department
stores operated by METRO GROUP. These department stores are mostly located in city
centres)
 750 stores in 30 countries
 225.000 employees
 21 million customers
 CEO: Olaf Koch

4. Strategy
• Generating longrange, sustainable growth
• Improve like-for-like sales and earnings
• Optimising cost position and cash flow
• Improving margins and reducing net debt
• Creating value for the customers
• Five focus points:
• Transform
• Grow
• Improve
• Expand
• Innovate

5. SWOT Analysis
Strength
1. One of the top five largest retail chain in the
world and largest in its home market, Germany
2. Multi-store formats-convenience store,
department stores, supermarkets, discount stores
etc.
3. Retail operations offered to commercial
customers too in the format of cash and carry
stores
4. Huge brand equity and successful customer
loyalty programmes
Weakness
1.Need of localisation of its stores across different
cities and countries puts an additional pressure on
operation costs
2.Lower investments made by the retail chain in
modernising its IT technology and systems for
better automation of business
Opportunity
1.Seek growth through expansion into newer
markets
2.Emphaiss on private label growth
3.Widescale advertising, promotions and customer
loyalty programmes to increase business and loyal
customers
Threats
1.Rising labour costs worldwide
2.Threat from unionization of workforce in
Germany
3.Precarious economic condition in Euro zone and
Americas
Competitors:

6. Concept
Supplier / Manufacturer / Farmer
Metro Cash and Carry
Traders / Hotels / Cafes / Small businesses
Consumer / End user

7. Metro in hungary
• 13 stores
• Online shopping available
• Club Cards
• Service Points
• Gastro academy
• Corporate trainings
• Bakery services
• Catering