Real and METRO Cash & Carry Germany sign service agreement with MARKANT Handels- und Industriewaren Vermittlungs AG

  • MARKANT takes over settlement of Real and METRO Cash & Carry Germany
  • Real, METRO Cash & Carry Germany and suppliers benefit by synergies and simplifications

Düsseldorf, Germany, 2015-4-27 — /EPR Retail News/ — Real and METRO Cash & Carry Germany signed a service agreement with MARKANT Handels- und Industriewaren Vermittlungs AG. MARKANT will in future be responsible for the complete settlement of the German merchandise business of both entities. The migration will be effected in several steps.

MARKANT AG is a service company with activities across Europe that, besides taking the role of a intermediary between trade and industry, offers a vast portfolio of services along the complete value creation chain and in the backup field. Effective now, the entire German merchandise business of Real and METRO Cash & Carry Germany will be handled through this company. With this move, METRO GROUP is strengthening the competitiveness of its sales lines on the domestic market. The migration will be effected in several steps and is expected to be completed by the end of 2015. This means that, in future, the participating suppliers will send their invoices directly to MARKANT. MARKANT will then settle them with due consideration of the agreed conditions and draw the funds directly from Real and METRO Cash & Carry Germany. Thanks to the high degree of harmonisation with MARKANT, this will also result in synergies and benefits on the suppliers’ side because they will in future benefit from standardised settlement processes. The existing collaboration between METRO GROUP and Groupe Auchan is not part of this cooperation.

“This cooperation will contribute to enhancing the competitiveness of Real”, says Patrick Müller-Sarmiento, Managing Director Purchasing at Real. “Real is focussing on its domestic market in Germany and adjusting its business processes accordingly. With its great experience in German food retailing, MARKANT is the ideal cooperation partner for us”. Real is successfully cooperating with MARKANT already today. This cooperation includes the bundling of non-food, the procurement of Spanish fruits and vegetables via Iberiana and the entry-level drugstore brand Laligne, for example.

Alain Cappannelli, Managing Director Purchasing at METRO Cash & Carry Germany, adds: “We are looking forward to a good cooperation with MARKANT and to thereby leverage additional potential for METRO Cash & Carry Germany. As a trading and services company with activities throughout Germany, MARKANT is highly specialised in the settlement and bundling of purchasing volumes. This way, we can collaborate even more efficiently with our suppliers in the future.”

“Both, Real and METRO Cash & Carry Germany, are an excellent match for us because, with a view to the orientation of their processes, both companies will find a lot of potential for a successful cooperation with MARKANT. The fact that we have been able to convince such partners of our services, and win them, attests not only to the quality of our services, but also to our philosophy according to which, as a rule, we do not meddle in the operational and trading competencies of our partners. Specifically, this means that we respect the different corporate cultures and distribution concepts”, says Franz-Friedrich-Müller, Managing Director of MARKANT AG.

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 – Real hypermarkets and Galeria Kaufhof department stores.

MARKANT AG, headquartered in Swiss Pfäfflikon, is the largest trading and service cooperation in Europe’s food industry and has more than six decades of market experience. Its main trading partners are independent companies.

Gross external sales of the over 100 affiliated trade partners is € 83 billion, of which nearly € 38.5 billion are being settled by MARKANT. The business of MARKANT range from goods brokerage business with around 11,000 industrial partners through information management of the European Central regulation to numerous product data-related services and extensive financial services.

METRO GROUP to adjust the goodwill resulting from companies acquired 17 years ago as part of sustainable repositioning of the hypermarket chain Real

  • Around €450 million impairment of goodwill from the takeover of Allkauf and Kriegbaum stores in 1998
  • No effect on Group guidance before special items
  • Major investments into stores and services intended

Düsseldorf, Germany, 2015-4-24 — /EPR Retail News/ — As part of a sustainable repositioning of the hypermarket chain Real, METRO GROUP will adjust the goodwill resulting from companies acquired 17 years ago. With this move, METRO GROUP creates a solid balance sheet foundation and more room to manoeuvre for the already successfully initiated repositioning of Real. Building on the success of the repositioning to date, METRO GROUP intends to invest extensively into the modernisation of Real’s stores and customer services in the next few years.

“During the past three years we have already significantly invested into the modernisation and realignment of Real and observe very positive developments at those hypermarkets that have already been converted to the new concept, especially in terms of sales”, said Olaf Koch, Chairman of the Management Board of METRO AG and also Chairman of the Supervisory Board of Real SB-Warenhaus GmbH. “Based on the positive insights that we have gained from the modernisation process so far, we will continue investing into the concept conversion of our stores. However, our earnings are already strongly affected by distortions in the German pay scale structure and increased investments into competitiveness. Against this backdrop and to maintain the leeway required to this effect, we have now impaired this goodwill and thereby taken out the pressure from the balance sheet. As we are targeting a sustainable repositioning of Real, we intend to continue investing into the Real business model also in the coming years.”

“Specifically, METRO AG is recognizing goodwill adjustments in the amount of some €450 million in its consolidated balance sheet”, explains Mark Frese, Chief Financial Officer of METRO AG. This book value resulted mostly from METRO GROUP’s takeover of the Allkauf hypermarket chain as well as of the stores from the retail group Kriegbaum and their merger with Real in 1998. “This impairment of goodwill represents a non-cash special item”, said Frese. METRO GROUP therefore continues to expect EBIT before special items adjusted for currency effects to rise slightly above the €1,727 million achieved in financial year 2013/14.

Real has invested heavily into various measures for more customer centricity, including in particular, into the store infrastructure, merchandise presentation and freshness assortments, own brands as well as into the multi-channel appearance during the past 18 months. As many as 82 of the total of more than 300 Real hypermarkets have already been modernised and report gratifying growth in sales and customer frequency.

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 – 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.

Hypermarket chain Real announces management board changes

  • General Manager Jörg Kramer to become Head of HR
    Frank Kretzschmar joins management board as Chief Operations Officer
  • Labour Director Andreas Schrödinger assumes new task within the METRO GROUP
  • Contracts of CEO Didier Fleury and CMO Patrick Müller-Sarmiento extended by three years

Düsseldorf, Germany, 2014-10-3— /EPR Retail News/ — Hypermarket chain Real reorganises responsibilities within its management board. As the Mönchengladbach-based company announced subsequently to a meeting of the supervisory board, the management board positions for HR and operations will be reassigned. At the same time, the employment contracts of Didier Fleury, Chairman of the Management Board, and Patrick Müller-Sarmiento, Chief Merchandise Officer, were extended for another three years until August 2018, respectively September 2018.

Former General Manager Jörg Kramer will lead the HR department of Real as new Labour Director as of 1st of January 2015, taking over the position from Andreas Schrödinger, who at his own request, will leave the Real management board in order to accept new responsibilities within the METRO GROUP. In addition, Frank Kretzschmar, former Chairman of the Management Board of Media Markt and Saturn Austria, will manage the sales activities as new Chief Operations Officer (COO) and will be at the same time responsible for the region north from the beginning of next year. Together with CFO Henning Gieseke, Real’s Management Board comprises five members as before.

“The realignment of Real initiated by Didier Fleury and his team is returning first successful results,” says Olaf Koch, Chairman of the Supervisory Board of Real and Chairman of the Management Board of METRO AG. “The early extension of the employment contracts ensures the required continuity during our transformation process. The reassignment of management responsibilities paves the way for the company’s future success. We would like to thank Andreas Schrödinger for many years of excellent work and also wish Jörg Kramer and Frank Kretzschmar all the best and success for their new tasks.”

As General Manager in the Real management board, Jörg Kramer currently is responsible for the sales region north, and furthermore coordinates all sales activities regarding national topics. He previously coordinated the non-food sector within the Real management board from 2004 to March 2013. Frank Kretzschmar joined the management board of Media Markt and Saturn Austria in 2005 and became Chairman of the Management Board in 2008. He also served as COO of Media-Saturn-Holding in Ingolstadt from 2011 to 2013. Andreas Schrödinger has been Labour Director and a member of the Real management board since 2003. He previously held various executive positions outside of the METRO GROUP, e.g. as HR Manager of the ABB AG.

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 Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

real,- SB-Warenhaus GmbH is a METRO GROUP company. real,- offers a comprehensive range of food and non-food products, high quality fresh items and attractive prices. All this makes Real one of the leading hypermarket companies in Germany. Under the umbrella of real,- Group, the company operates about 300 hypermarkets throughout Germany, as well as a 2 Drive-In-Food-Stores in Germany and the real,- Online-Shop. The company, employing about 40,000 employees, generated a sales volume of around €7.3 billion in the 2012/13 fiscal year (pro forma). Further information on www.real.info and www.metrogroup.de

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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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