Metro Group (Germany)
Metro is currently one of Germany's largest general retail groups, but like French counterpart Carrefour, it has struggled to find a path to strong growth in its domestic market as a result of fierce competition from cooperative groups and discount rivals Aldi and Lidl. The group was formed in 1996 from the merger of three separate companies - Metro Cash & Carry, Kaufhof Holding and Asko Deutsche Kaufhaus. It operates around 2,060 wholesale warehouses, hypermarkets and electronics stores in 30 countries. Key brands include Metro cash & carry warehouses, Media Markt and Saturn electronics and entertainment stores, and hyper/supermarket chain Real. It lost its lead in the grocery market with the sale in 2008 of struggling supermarket chain Extra to competitor Rewe, and was overtaken as Germany's biggest retailer in 2013 by Lidl parent Schwarz Gruppe. The group sold its Kaufhof department store business in 2015 to HBC of Canada. The following year, the group announced plans to split into two separate companies during 2017, one comprising the cash & carry business and supermarkets; the other housing the MediaMarkt and Saturn chains.
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Recent stories from Adbrands Weekly Update:
Adbrands Weekly Update 9th February 2017: Shareholders of German retail giant Metro approved its separation into two separate companies. The existing group's Metro cash and carry and Real hypermarket businesses will be spun off into a separate entity which will adopt the Metro name. The remaining company, consisting of the MediaMarkt and Saturn electronics retail chains, will be renamed Ceconomy. That process is expected to complete mid-year.
Adbrands Weekly Update 31st Mar 2016: German group Metro, currently the 5th largest retailer in Europe, is to split into two separate public companies. The group's core cash & carry business and what remains of its supermarket division will be spun off into a separate entity led by current group CEO Olaf Koch, leaving consumer electronics behemoth Media-Saturn as the core of the renamed group. This comprises the twin European chains MediaMarkt and Saturn. It already operates as a separate division within the current group under CEO Pieter Haas. Annual revenues for Media-Saturn were almost €22bn last year, while the cash & carry and food retail units generated a combined €37bn. However, combined growth has been more or less flat for several years, and Metro's share price has significantly underperformed the market. The new move is designed to free up both businesses to pursue their own separate paths.
Adbrands Weekly Update 17th Dec 2015: German retail giant Metro Group, owners of the huge Media Markt-Saturn consumer electronics business and Real supermarkets as well as the Metro cash & carry, reported another flat performance for the year to Sept. Reported sales slid 1% to €59.2bn, partly as a result of exchange rates and the sale of its Galeria Kaufhof department store to Canada's HBC. Like for like sales rose 1.5%. However losses from continuing operations rose dramatically from negative €3m to negative €221m. Bottom line was saved only by proceeds from the Kaufhof sale, resulting in a €714m surplus.
Adbrands Weekly Update 25th Jun 2015: Canadian retail group HBC took its first steps into Europe with a deal to acquire Germany's biggest department store chain Galeria Kaufhof from Metro Group for €2.42bn. The group, which owns Canadian store Hudson's Bay Company as well as US-based Saks 5th Avenue, plans to use some of Kaufhof's current retail estate as a platform to launch the Saks brand into Germany. The European company owns 103 Kaufhof department stores and 16 Sportarena sports equipment outlets in Germany, as well as the Inno department store chain in Belgium. HBC beat off a rival bid from the owner of Germany's other major department store business Karstadt.
The Adbrands Company Profile of Metro AG summarises the company's history and current operations. Subscribers may access the following website links:
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