METRO GROUP posts like-for-like sales growth of 1.5% in financial year 2014/15

  • Like-for-like sales growth of 1.5% in financial year 2014/15
  • Growth drivers online retail and delivery remain successful
  • METRO Cash & Carry and Media Saturn report like-for-like sales growth in both financial year 2014/15 and Q4 2014/15
  • Acquisitions Classic Fine Foods and RTS strengthen sales lines
  • Sale of Galeria Kaufhof successfully completed; net cash inflow of €1.75 billion, above original forecast
  • METRO GROUP anticipates good Christmas business

Düsseldorf, Germany, 2015-10-19 — /EPR Retail News/ — According to preliminary figures, METRO GROUP increased its like-for-like sales by 1.5% in financial year 2014/15. This means that the Düsseldorf-based retail and wholesale company has achieved its full-year sales target. Reported sales of €59.2 billion fell 1.2% short of the previous year’s figure due to negative currency and portfolio effects. However, sales in local currencies increased by 0.5%. “Financial year 2014/15 was a turning point for METRO GROUP,” said Olaf Koch, Chairman of the Management Board of METRO AG. “We managed to make our core business dynamic again and strengthened our balance sheet even further. We reached our full-year like-forlike sales target. We also confirm our guidance for EBIT before special items¹. Following the successful sale of Galeria Kaufhof, we also once again have the financial means to make further acquisitions to supplement and strengthen our sales lines, such as the recently acquired companies Classic Fine Foods and RTS.”

METRO GROUP’s like-for-like sales rose by 1.3% in Q4 2014/15. Both METRO Cash & Carry and Media-Saturn recorded increases in like-for-like sales in Q4 2014/15 and over financial year 2014/15 as a whole. Reported sales fell by 1.1% to €14.2 billion. However, this was due to currency and portfolio effects. Sales in local currencies increased by 1.9%.

METRO GROUP also significantly expanded its business in the strategic growth areas of online retail and delivery in Q4 2014/15 and, in doing so, reinforced its market position and customer relevance in many countries. METRO GROUP expects a positive Christmas business and has begun the current quarter with an optimistic outlook.

METRO GROUP has made further progress in optimising its portfolio: The most important event in Q4 was the completion of the sale of Galeria Kaufhof as announced on 30 September 2015. The value of the transaction stood at €2.825 billion, including various liabilities. METRO GROUP received the net cash payment of €1.75 billion, which was above the original forecast, in due time.

¹Adjusted for currency effects slightly above the €1,531 million achieved in financial year 2013/14, including typical levels of net income from real estate sales

FULL RESULTS

SOURCE: METRO GROUP

HBS Global Properties acquires 41 GALERIA Kaufhof properties from Simon Property Group Inc. for €2.6 billion

Portfolio totals 83 properties with an Asset Value of $4.8 billion(1)

NEW YORK, LOS ANGELES & COLOGNE, Germany, 2015-10-5 — /EPR Retail News/ — HBS Global Properties, the real estate joint venture between Hudson’s Bay Company (“HBC”) (TSX: HBC) and Simon Property Group Inc. (“Simon”) (NYSE: SPG), is pleased to announce the acquisition of 41 GALERIA Kaufhof properties (the “Acquisition”) in a transaction valued at €2.6 billion (US$3.0 billion)(1)(2). Unless otherwise indicated, all amounts are expressed in US dollars.

With the Acquisition, HBS Global Properties now owns an international property portfolio of 83 marquee retail locations across the United States and Germany, including flagship department stores in Berlin, Beverly Hills, Cologne, Dusseldorf, Frankfurt, the greater New York area, as well as properties in other metropolitan and suburban centers. These properties generate annual cash rents of $274 million(1), valuing the portfolio at approximately $4.8 billion based on a blended cap rate of 5.75%.

“With the close of the Acquisition, HBS Global Properties is taking an important step forward in its next chapter of growth,” stated Richard Baker, Chairman, of HBS Global Properties. “This joint venture will benefit from a strong foundation of HBC properties, now including GALERIA Kaufhof, whose tremendous value has been recognized by our best-in-class partner.”

“In HBC, we have found a unique partner with a proven track record of creating value from retail properties, as well as a strong portfolio of banners that serve as attractive tenants for a range of retail opportunities,” said David Simon, Chairman and Chief Executive Officer of Simon. “As the Acquisition demonstrates, we continue to leverage our combined expertise to significantly expand and diversify the joint venture assets and increase its value for the benefit of investors.”

HBS Global Properties has established a dedicated management team to focus on overseeing the properties and growing the portfolio, with support from HBC and Simon. This team is headed by Lee Neibart, who has more than 40 years of real estate experience. Lee will lead an executive team comprised of Patrick Walmsley, Chief Investment Officer – USA, and Lutz Rupprecht, Chief Financial Officer and Managing Director – Germany, with the support of additional team members in both Los Angeles and Cologne.

“In a relatively short period of time, we have built a fantastic portfolio of properties,” said Lee Neibart, Chief Executive Officer of HBS Global Properties, “I am excited to work with our team in North America and Europe to continue to grow our portfolio through accretive acquisitions.”

In addition to pursuing attractive credit tenant, net-leased and multi-tenanted retail buildings in the United States and Europe, HBS Global Properties will have a mandate to explore similar international opportunities. The entity is structured to facilitate an IPO or other monetization of the joint venture at a future date.

(1)    Assumes a EURUSD exchange rate of 1.13
(2)    Represents value of properties after all transactions are completed, including the post-closing acquisition of certain real estate properties and the minority interest, expected to occur within 6 months.

Media Contact

HBS Global Properties

Andrew Blecher
Phone: (212) 391 3179
Email: andrew.blecher@hbc.com

 

METRO GROUP sells Galeria Kaufhof including all locations in Germany and Belgium to the Canadian Hudson’s Bay Company for EUR 2.825 billion

  • Closing date of transaction 30 September 2015
  • Transaction value: €2.825 billion
  • Net cash inflow of €1.75 billion for (today’s) end of METRO AG’s financial year as at 30.09.2015
  • Rating-relevant net debt reduced by €2.85 billion

Düsseldorf, Germany, 2015-10-1 — /EPR Retail News/ — METRO GROUP successfully concludes the sale of Galeria Kaufhof including all locations in Germany and Belgium to the Canadian Hudson’s Bay Company as of 30 September 2015, as planned.

“With the disposal of Galeria Kaufhof, we are continuing with the transformation process and debt reduction at METRO GROUP and are able to focus on the METRO Cash & Carry, Media-Saturn and Real sales lines. We know that Galeria Kaufhof is in good hands and wish all employees the very best,” commented Olaf Koch, Chairman of the Management Board of METRO AG. “We will also use a part of the proceeds for acquisitions in order to strengthen and supplement our METRO Cash & Carry and Media-Saturn sales lines. The recently acquired companies Classic Fine Foods and RTS are prime examples.”

The agreed transaction value is €2.825 billion including various liabilities. In this context, METRO GROUP refers to the joint press release of the parties as of signing of the transaction as well as the latest quarterly earnings release of HBC (Second Quarter Events in the MD&A). The net cash inflow amounts to around €1.75 billion and is above previous forecasts. “With this agreement, we are on the right track to reducing our net debt to below €3.2 billion as of 30 September 2015 and to further improving our rating-relevant key figures”, added Mark Frese, CFO of METRO AG.

In the annual financial statements for 2014/15, which will be published on 15 December 2015, METRO GROUP forecasts a positive EBIT effect of some €750 million from the disposal of Galeria Kaufhof which will be reported as a special item. The divested operations of Galeria Kaufhof with around 17,000 employees and 134 locations generated sales of €3.1 billion in financial year 2013/14.

METRO GROUP is one of the largest and most important international retailing companies. In the financial year 2013/14 it generated sales of around €63 billion. The company operates around 2,200 stores in 30 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self-service wholesale – Media Markt and Saturn – the European market leader in consumer electronics retailing and Real hypermarkets.

SOURCE: METRO Group

Canada-based Hudson’s Bay Company to acquire Metro’s department store group GALERIA Kaufhof and its Belgian subsidiary Inno for €2.825 billion

  • Creates a Global Platform, Positioning HBC for Future Growth in Europe
  • Transaction Value of €2.825 Billion Agreed, Including the Assumption of Certain Liabilities
  • HBC Plans to Work with GALERIA Kaufhof’s Existing Management Team to Further Strengthen Offerings to Consumers
  • Agreement Includes Extensive Commitments to Maintain Employment Levels and Store Count, GALERIA Kaufhof to Remain Headquartered in Cologne
  • Transaction Expected to Deliver Immediate Value to HBC Shareholders
  • METRO GROUP Expects Positive EBIT Effect of Around €0.7 Billion from the Transaction
  • Transaction Should be Completed by the End of the Third Quarter of 2015
  • Joint Press Conference on Monday in Cologne at 11:15 AM

Düsseldorf, Germany, 2015-6-15 — /EPR Retail News/ — Canada-based Hudson’s Bay Company, one of the foremost retail operators in North America and its longest continually operated company, and Düsseldorf-based METRO GROUP today announced that they have entered into a definitive agreement under which HBC will acquire Metro’s department store group GALERIA Kaufhof and its Belgian subsidiary Inno for a transaction value of €2.825 billion, including the assumption of certain liabilities. The transaction has been approved by the Board of Directors of HBC as well as the Supervisory Board of METRO AG. It is expected to close by the end of the third quarter of 2015.

As a result of the acquisition, HBC will have:

  • 464 Locations Worldwide, 8 Leading Banners
  • C$13 (€9.0) Billion in Revenue(1)
  • Pro Forma Sales by Market: 44% US; 31% Germany 23% Canada, 2% Belgium
  • Strong Management Teams in North America and Europe

The transaction is a further extension of HBC’s proven strategy of growing through mergers and acquisitions, with GALERIA Kaufhof further diversifying HBC’s portfolio and positioning the Company as a premier international retailer. Specifically, HBC is taking over 103 GALERIA Kaufhof stores in Germany from METRO GROUP, including 59 properties in prime inner-city locations that are part of the GALERIA Real Estate portfolio. As part of the transaction, HBC is also acquiring 16 Sportarena stores, 16 GALERIA Inno department stores located in Belgium, as well as various logistics centres, warehouses and other properties, and the long-standing GALERIA Kaufhof head office in Cologne.

Richard Baker, HBC’s Governor and Executive Chairman, said, “This is an exciting transaction that demonstrates our proven growth formula in action, and it is the right investment and the right time. We have been carefully surveying the European retail landscape for many years for a potential expansion opportunity and have watched GALERIA Kaufhof build on its exceptional real estate to become the #1 department store in Germany. We are excited to work with the GALERIA Kaufhof management team to leverage our expertise, and we welcome GALERIA Kaufhof to our portfolio of dynamic brands.”

Olaf Koch, Chairman of METRO’S Management Board, said, “With Hudson’s Bay Company, we have found the ideal partner for a successful future of GALERIA Kaufhof. HBC pursues a strategy of international growth and GALERIA Kaufhof plays a central role in this expansion. Beyond the attractive financial and transactional aspects, a key factor for us was the fact that HBC has made binding guarantees to take on the approximately 21,500 GALERIA Kaufhof employees in Germany and Belgium. We also would like to thank all employees of GALERIA Kaufhof and its management for their outstanding contribution to the business and their great work. Without their dedication, the company would not have achieved, and maintained, its No 1 position.”

With this transaction METRO GROUP will achieve a positive cash inflow of around €1.6 billion and significantly reduce its rating-relevant net debt by around €2.7 billion. Moreover METRO GROUP expects a positive EBIT effect of around €0.7 billion from the transaction.

As part of the Agreement, HBC will continue to operate GALERIA Kaufhof, Inno and Sportarena under their current brand banners. No significant changes, beyond those already announced by GALERIA Kaufhof, are currently anticipated with respect to the store footprints or staffing levels at any of the brand banners, and GALERIA Kaufhof will remain headquartered in Cologne. When combined with HBC’s current portfolio of iconic store banners, including Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Saks OFF 5TH and Home Outfitters, HBC will operate 464 stores under 8 banners, with 44% of sales generated in the United States, 31% in Germany, 23% in Canada and 2% in Belgium.

GALERIA Kaufhof’s existing management team is expected to remain in place following the close of the transaction, and will work closely with HBC’s leadership to explore opportunities to further strengthen GALERIA Kaufhof’s offerings to consumers. These are expected to include: expanding the GALERIA Kaufhof brand matrix; aggressively growing GALERIA Kaufhof’s eCommerce; optimizing key merchandise categories; and pursuing the opportunity to introduce the Saks Fifth Avenue and the Saks OFF 5TH banners in Germany and Belgium, and the potential to build within the existing store network to improve productivity and optimize floor space.

Kaufhof Acquisition Strengthens HBC’s Position as a Premier International Retailer

Jerry Storch, CEO of HBC, said, “This transaction is a significant step forward in our plans to become a premier global retailer. We look forward to working with GALERIA Kaufhof’s management team as we bring together two geographically complementary businesses, diversifying HBC’s revenue base with leading banners in Canada, the United States, Germany and Belgium. This is a strong foundation to explore additional opportunities for growth throughout the Continent.”

Lovro Mandac, Chairman and CEO of Galeria Holding, said: “GALERIA Kaufhof has worked in the past years to achieve a good position in the German retailing market through a continual willingness to change and a high customer orientation. That is thanks to the performance of the Associates and the leadership team. As a result, our company is now well-armed for the future with Hudson’s Bay as our new owner. It is good and important for the company that there is now clarity about the ownership question. We thank METRO GROUP for their support in the past years and look forward to cooperating with Hudson’s Bay on the future positioning of the company.”

Building on GALERIA Kaufhof’s Leadership Position in the German Retail Marketplace

Don Watros, President of HBC International, commented, “With GALERIA Kaufhof, we gain a best-in-market, successful retailer with a network of very well-maintained stores, a beloved heritage and a brand that resonates strongly with German consumers. Based on our extensive experience in building outstanding department stores, we intend to leverage our expertise and proven strategies to further build GALERIA Kaufhof for a strong, all-channel future. We are looking forward to working with the 21,500 highly skilled and motivated employees and in close cooperation with GALERIA Kaufhof’s works councils and unions.”

HBC is structuring the transaction and financing similar to previous transactions in Canada and the United States. BofA Merrill Lynch is acting as exclusive financial advisor to HBC on the transaction. Willkie Farr & Gallagher LLP is acting as M&A legal counsel, and Stikeman Elliott LLP is acting as company legal counsel. METRO is being advised by JP Morgan and Deutsche Bank and Clifford Chance is serving as legal counsel.

METRO GROUP had decided to sell its department store subsidiary because the Düsseldorf-based group wishes to focus more strongly on its wholesale business METRO Cash & Carry, its consumer electronics division Media-Saturn and its hypermarket chain Real in the future. “Not only has HBC submitted the best offer in terms of a secure future for GALERIA Kaufhof, it has also made a valuable bid for our shareholders,” said Olaf Koch. “We will also use the proceeds from the sale of GALERIA Holding GmbH for greater investment in our other sales channels, thus ensuring the group’s future growth. In this way, we are strengthening METRO GROUP for our customers and in the interests of all our employees and shareholders.”

Both companies will hold a Press Conference this Monday at 11:15 h German time at the Cologne Marriott Hotel which will be broadcasted online. A dedicated invitation to the media will be sent out soon.

METRO GROUP will also invite to an analysts call, details will be sent out soon.

Prior to an HBC conference call for its investors and analysts later this morning, HBC intends to issue an additional press release providing further financial detail with respect to the transaction, structure and expected impact of the addition of GALERIA Kaufhof to HBC.

Note: Assumes € 1 = C$1.387
(1) 52 weeks ended May 2, 2015 for HBC and 12 months ended March 31, 2015 for Galeria.

About Galeria Kaufhof
GALERIA Holding GmbH is a group of companies with sales of EUR 3.1bn and 21,500 employees (2013/14 business year). It comprises the operating department store business of GALERIA Kaufhof GmbH in Germany (103 stores), Sportarena GmbH (16 stores) and GALERIA Inno in Belgium (16 stores). Galeria KAUFHOF and GALERIA Inno are market leaders in their respective countries and they interlink their online shops and their bricks-and-mortar business through a successful multi-channel strategy. GALERIA Real Estate Holding GmbH, as a subsidiary of GALERIA Holding GmbH, is responsible for the strategic development of the 59 inner-city retail properties under its management in Germany. GALERIA Real Estate Group contributes to maintaining and increasing the value of the real estate portfolio. GALERIA Immobilienservice GmbH is the subsidiary of GALERIA Holding GmbH that performs various services related to the department store properties.

About Hudson’s Bay Company
Hudson’s Bay Company, founded in 1670, is North America’s oldest company. Today, HBC offers customers a range of retailing categories and shopping experiences primarily in the United States and Canada. Our leading banners – Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks Fifth Avenue OFF 5TH – offer a compelling assortment of apparel, accessories, shoes, beauty and home merchandise. Hudson’s Bay is Canada’s most prominent department store with 90 full-line locations, two outlet stores and thebay.com. Lord & Taylor operates 50 full-line locations primarily in the northeastern and mid-Atlantic U.S., four Lord & Taylor outlet locations and lordandtaylor.com. Saks Fifth Avenue, one of the world’s pre-eminent luxury specialty retailers, comprises 39 U.S. stores, five international licensed stores and saks.com. OFF 5TH offers value-oriented merchandise through 83 U.S. stores and saksoff5th.com. The Company also operates Home Outfitters, Canada’s largest kitchen, bed and bath specialty superstore with 67 locations. Hudson’s Bay Company trades on the Toronto Stock Exchange under the symbol “HBC”.

About METRO GROUP
METRO GROUP is one of the most important international trading companies. In the financial year 2013/14, it generated sales of about €63 billion. The company operates around 2,200 stores in 30 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self-service wholesale –, Media Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

METRO GROUP achieves sales target for the entire financial year 2013/14

  • Sales at METRO GROUP climbed by 1.3% in financial year 2013/14 after adjustment for portfolio changes and currency effects
  • Like-for-like sales increased by 0.1% after totalling -1.3% in the previous year; sales guidance achieved
  • Q4 2013/14: all sales lines generated higher like-for-like sales; considerable trend improvement at Media-Saturn
  • Earnings outlook confirmed
  • METRO GROUP’s Christmas business gets off to a confident start

Düsseldorf, Germany, 2014-10-21— /EPR Retail News/ — According to preliminary and unaudited figures, METRO GROUP increased its sales by 1.3% in financial year 2013/14 adjusted for portfolio and currency effects. The company’s like-for-like sales also rose slightly by 0.1%, compared with -1.3% in the previous year. In generating this gain, the Düsseldorf-based retailing company achieved its sales target for the entire financial year. In Q4 2013/14, like-for-like sales even increased by 0.7%. “We succeeded in improving our like-for-like sales in recent quarters”, said Olaf Koch, Chairman of the Management Board of METRO AG.”During Q4 in particular, we saw a strong trend improvement and increased like-for-like sales in every sales line. This is a clear reflection of our successful strategic transformation, a process we continued to energetically implement during this quarter. On the basis of our performance, we also confirm our outlook for EBIT before special items1. In addition, with these positive results we have further strengthened our financial power.”

Reported sales of METRO GROUP totalled €63.0 billion in financial year 2013/14. Adjusted for the disposal of company operations – particularly Real’s complete Eastern European business – sales declined by 1.1% compared with last year. Furthermore, exchange rates moved in a particularly negative direction during financial year 2013/14. Added together, portfolio and currency effects caused sales to fall by 4.0%. But adjusted for the portfolio changes and exchange rate developments, sales of METRO GROUP rose sharply by 1.8% in Q4. Reported sales in Q4 totalled €15.1 billion (Q4 2012/13: €15.5 billion).

During Q4 2013/14, METRO GROUP extensively expanded its business operations in the strategic growth areas of multichannel retailing, delivery, franchise activities and own brands. In the process, it solidified its market position and raised its level of relevance to customers in many countries. With Christmas approaching,METRO GROUP is well prepared and optimistically entered the current quarter.

METRO GROUP also has made further progress in its work to optimise its portfolio: the company expects the agreement to sell its wholesale business in Vietnam to take effect during the first half of 2015. The company also generated a considerable profit when it sold its stake in the British wholesale company Booker. Both steps will serve to reduce the company’s net debt and also create additional flexibility for further expansion in Eastern Europe and Asia as well as for investments in the transformation of its sales lines. In addition, METRO GROUPannounced in October 2014 that METRO Cash & Carry would withdraw from Denmark.

METRO GROUP 2
2012/13
2013/14
Q4 2012/13
Q4 2013/14
Sales (€ billion)
65.7
63.0
15.5
15.1
Change (in €)
-1.4%
-4.0%
-2.2%
-2.6%
Change (in local currency) 3
-1.7%
-0.2%
-0.9%
Like-for-like 3
0.1%
-0.3%
0.7%

Sales development of the sales lines in financial year 2013/14

METRO Cash & Carry
Like-for-like sales of METRO Cash & Carry rose in Q4 2013/14 for the fifth consecutive time. During September, in particular, the activities related to the 50th anniversary of the wholesale subsidiary had a positive effect. The previous year’s high sales level was almost reached in Germany. While business development in Western Europe declined in Q4, like-for-like sales continued to rise in Eastern Europe and Asia. Sales development in Russia remained very positive. By contrast, sales in Ukraine fell sharply in the wake of the crisis. Within Asia, sales in India recorded a particularly strong increase. As a result of portfolio adjustments and negative currency effects, total sales at METRO Cash & Carry declined by 2.1% during financial year 2013/14.

METRO Cash & Carry
2012/13
2013/14
Q4 2012/13
Q4 2013/14
Sales (€ billion)
31.2
30.5
7.8
7.6
Change (in €)
-1.4%
-2.1%
-0.4%
-2.1%
Change (in local currency) 3
2.0%
2.7%
0.9%
Like-for-like 3
1.0%
0.9%
0.1%
Media-Saturn
Media-Saturn generated sales of €21.0 billion during financial year 2013/14(2012/13: €21.1 billion). In Q4 2013/14, Media-Saturn produced a strong trend improvement with like-for-like sales growth of 1.8%. Sales rose significantly both in Germany and internationally due to the successful development of the stationary retail business as well as the rise in Media-Saturn’s multichannel sales. Like-for-like sales in its home market of Germany increased by 1.4%, due in part to successful marketing campaigns. In Western Europe, sales developed also positive. In Eastern Europe, the sales line generated double-digit growth rates in local currency in nearly all countries. The highest sales growth was generated in Hungary and Russia.
Media-Saturn
2012/13
2013/14
Q4 2012/13
Q4 2013/14
Sales (€ billion)
21.1
21.0
4.8
4.9
Change (in €)
0.8%
-0.3%
-0.1
3.1%
Change (in local currency) 3
0.9%
1.0%
3.9%
Like-for-like 3
-0.9%
-1.9%
1.8%

Real
Real generated sales of €8.4 billion during financial year 2013/14(2012/13: €10.4 billion). The decrease of 18.7% primarily resulted from the disposal of Real in Eastern Europe. In Q4 2013/14, sales totalled €1.9 billion(Q4 2012/13: €2.3 billion). Like-for-like sales produced by Real in Germany rose slightly by 0.2% in Q4. Overall, the improved positioning and store modernisation of METRO GROUP’s hypermarket business was particularly noticeable in a sector known for its very aggressive pricing policies. In particular, the remodelled Real stores had a positive impact on sales trends. The attractive product range with a large share of fresh foods and the successful own brands sold in a modern shopping environment have created a much more pleasant customer shopping experience.

Real
2012/13
2013/14
Q4 2012/13
Q4 2013/14
Sales (€ billion)
10.4
8.4
2.3
1.9
Change (in €)
-5.8%
-18.7%
-12.4%
-17.3%
Change (in local currency) 3
-18.3%
-11.6%
-17.3%
Like-for-like 3
-0.8%
-1.9%
0.2%

Galeria Kaufhof
Galeria Kaufhof increased its quarterly sales once again. In financial year 2013/14,Galeria Kaufhof generated total sales of €3.1 billion, a slight increase above the previous year’s level. In Q4, sales (including like-for-like) rose by 1.2%. The sales line’s product range that is continuously refined to meet customers’ needs and increased online sales contributed to this growth.

Galeria Kaufhof
2012/13
2013/14
Q4 2012/13
Q4 2013/14
Sales (€ billion)
3.1
3.1
0.7
0.7
Change (in €)
-1.3%
0.5%
1.1%
1.2%
Like-for-like 3
0.5%
1.1%
1.2%

Store network development

30/09/2013
New openings
2013/14
Closures/
disposals
2013/14
30/09/2014
Change
(absolute)
METRO
Cash & Carry
752
+17
-3
766
+14
Media-Saturn
948
+50
-12
986
+38
Real
384
+1
-74
311
-73
Galeria Kaufhof
137
137
+0
Total
2,221
+68
-89
2,200
-21

1 €1,750 million provided that exchange rates remain constant.
2 To enable better comparability following the change of the financial year, Q3 2013 is referred to in this report as Q4 2012/13. The period 12M 2012/13 consists of the former quarters Q4 2012, Q1 2013, Q2 2013 and Q3 2013.
3 Comparable figures for 2012/13 are not available due to the change of financial year.

METRO GROUP is one of the largest and most important international retailing companies. During the financial year 2012/13 (pro forma), it generated sales of about €66 billion. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments:METRO/MAKRO Cash & Carry – the international leader in self-service wholesale – Media Marktand Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

METRO GROUP announces reorganisation at Galeria Kaufhof management structure

Initiated generational change creates foundations for continued economic success and personnel continuity

  • Olivier Van den Bossche new CEO of department store operations
  • Lovro Mandac new Chairman of the Supervisory Board of GALERIA Kaufhof GmbH
  • Edo Beukema and Volker Schlinge resume the Management Board positions for Procurement and HR – Thomas Storck and Ulrich Köster with new duties atMETRO GROUP

Düsseldorf, Germany, 2014-10-3— /EPR Retail News/ — METRO GROUP is further driving the future-oriented reorganisation of its successful department store business: according to a statement by METRO AG, Olivier Van den Bossche (38), former Spokesman of the Management Board of Kaufhof’s Belgian subsidiary Galeria INNO, has taken over from Lovro Mandac (64) as Chairman of the Management Board of the department store operations ofGALERIA Kaufhof GmbH effective 1 October 2014. Lovro Mandac will in addition to his function as Chairman of the Management Board of GALERIA Holding GmbH also assume the position of Chairman of the Supervisory Board ofGALERIA Kaufhof GmbH, so far held by Mark Frese, Chief Financial Officer ofMETRO AG. METRO AG plans to ensure the future management of theGaleria Kaufhof Group which, in addition to its operational business also includes the city-centre real estate portfolio, via the company’s Shareholders’ Meeting chaired by Mark Frese. At the same time, new Managing Directors for Procurement and Human Resources are rising to the management of the leading German department store operator.

“With these structural measures we are initiating the generational change atGaleria Kaufhof while at the same time securing management continuity to sustainably secure and continue the successful course of our department store business”, said Mark Frese. “With Olivier Van den Bossche, we have won a recognised top manager as new Chairman of the Management Board for the operational department store business who has already done excellent work at Inno in Belgium. In his new function, Lovro Mandac, who has been a significant contributor to the successful development of Galeria Kaufhof for more than 20 years now, will ensure a smooth leadership transition within the company”.

GALERIA Holding GmbH is the umbrella organisation that combines the retail business and the real estate activities of Galeria Kaufhof; in addition to Lovro Mandac (Chief Executive Officer), the Management Board also includes Dr Henning Klöppelt (Chief Real Estate Officer) and Thomas Fett (Chief Financial Officer).

Two more changes will take place on the Management Board ofGALERIA Kaufhof GmbH effective 1 October 2014: The new Head of Procurement will be Edo Beukema, who has so far very successfully served in the same position at the Dutch department store operator de Bijenkorf. Thomas Storck, the current Head of Procurement, will be appointed to the newly created position of Chief Solution Officer and CIO at METRO Cash & Carry where he will manage the digital transformation of the wholesale business. In this role he will also be responsible for the online business of METRO Cash & Carry. At the same time, Ulrich Köster, CHRO and Labour Relations Director, will assume new duties within METRO GROUPstarting form 1 January 2015 and therefore withdraw from the Management Board of GALERIA Kaufhof GmbH; he will be succeeded in this position by Volker Schlinge, former Head of Marketing at GALERIA Kaufhof GmbH. Rami Al Assouad, currently Chief Buying Officer at Galeria INNO, will rise to the position of Spokesman of the Management Board of the Belgian department store subsidiary.

“With the new structure and this powerful team we will be well positioned to successfully advance Galeria Kaufhof with regard to both, its operational department store business and its real estate business”, stressed Mark Frese. “This way we will be able to further expand our leading position in the German market”.

Lovro Mandac stated: “The new holding structure of the Galeria Kaufhof Group will allow for an efficient and performance-oriented development of the company as a whole. With Olivier Van den Bossche we will be excellently positioned in our operational business in the future. He is very familiar with our company and has already demonstrated in Belgium that he is capable of managing a department store highly successfully and with a strong customer focus. We thank Ulrich Köster and Thomas Storck for their valuable contributions to the advancement of Galeria Kaufhof over the past years. We are looking forward to the future collaboration with Olivier Van den Bossche, Volker Schlinge, Edo Beukema and Rami Al Assouad and wish all of them every success in their new tasks”.

Management structure of Galeria Kaufhof as from 1 October 2014

METRO

METRO GROUP is one of the largest and most important international retailing companies. During the financial year 2012/13 (pro forma), it generated sales of about €66 billion. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments:METRO/MAKRO Cash & Carry – the international leader in self-service wholesale – Media Marktand Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

The GALERIA Kaufhof GmbH with its headquarters in Cologne is part of the METRO GROUPand one of Europe’s leading department stores. The company presents modern shopping and experience worlds with its innovative and successful Galeria concept. With its total of around 21,500 employees, GALERIA Kaufhof GmbH operates 105 department stores and 17 sports stores in Germany alone and 15 department stores in Belgium.

METRO GROUP returns to the ranks of the world’s sustainability leaders in retailing with its inclusion in Dow Jones Sustainability World Index

Düsseldorf, Germany, 2014-9-23— /EPR Retail News/ — METRO GROUP is returning to the ranks of the world’s sustainability leaders in retailing. From today, the Düsseldorf-based company with its sales lines METRO Cash & Carry, Media-Saturn, Real and Galeria Kaufhof will be relisted on the leading international sustainability index Dow Jones Sustainability World, the rating agency RobecoSAM has announced. With a significantly higher score of 71 points in this year’s rating (previous year: 60), the METRO AG share will also be added to the Dow Jones Sustainability Europe Index.

“Our inclusion in two of the internationally important sustainability indices demonstrates that we are on the right track with our sustainable business practices,” said Heiko Hutmacher, responsible for Sustainability in METRO AG’s Management Board. “I am particularly pleased that we cleared the hurdles for inclusion in the Dow Jones index for Europe. This motivates us and serves as affirmation of our environmental and social commitment.”

The Dow Jones Sustainability Indices include those companies that represent the best environmental, social and economic performers in their particular industry. The DJSI World consists of about 10 per cent of the 2,500 largest companies for each industry listed in the S&P Global Broad Market Index. The DJSI Europe is made up about 20 per cent of the 600 largest companies for each industry in Europe. The basis for inclusion in these indices is an analysis of companies’ sustainability strategies and programmes that is conducted by the independent agency RobecoSAM.

In 2012, the METRO GROUP share was temporarily removed from the DJSI World after 12 consecutive years of membership of the well-known index. “Over the past two years, we deliberately took the time we needed to review and transform all of our sustainability-related activities,” Hutmacher said. “This hard work and our re-energised efforts have now paid off. I would like to thank all colleagues involved in the work. We also understand that sustainable actions are not a one-off event. Rather, they involve a process that must be constantly enhanced, improved and modified. This is the declared goal of METRO GROUP.”

The analysts highlighted the retail company’s commitment to the environmental and social aspects of sustainability. A positive assessment was made about trends in such key environmental performance indicators as greenhouse gases, energy and water consumption, and volume of waste, among other things. METRO GROUP was listed as the best company in its industry in the area of labour practice indicators, the observation of human rights and human-capital development.

In developing its sustainability strategy, METRO GROUP has used the company assessment related to the Dow Jones indices as its guide for many years. Most recently, the company announced at its Annual General Meeting in February 2014 that the issue of sustainability would play a key role in Management Board compensation beginning in financial year 2013/14. Under the Sustainable Performance Plan (SPP), 25 per cent of the long-term incentive component of Management Board remuneration will be tied to the achievement of sustainability targets alongside key performance indicators based on the company’s share price. The amount of the long-term incentive related to the sustainability components is linked to the ranking that METRO AG achieves in the RobecoSAM sustainability ranking in comparison with competitors in its industry. Compensation for the senior management of METRO GROUP around the world has also been modified in this manner.

METRO GROUP is one of the most important international retailing companies. During the financial year 2012/13 (pro forma), it generated sales of about €66 billion. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self-service wholesale – Media Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

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