HEAD QUARTERS OF METRO AG

DUSSELDORF,GERMANY
INTRODUCTION

• Thedriving force in International Trade

and Retail

• Founded in 1964; formed in 1996

• Operates 2,250 stores in 32 countries

C.E.O. of Metro Group C.F.O. of Metro Group
Mr. ECKHARD CORDES Mr. OLAF KOCH
POSITIONING

• 5th largest retailer in the world

 Largest market share in its home

market

 One of the most globalize retail and

wholesale corporation
REVENUES
• US$ 87.23billion

• Operating income: US$ 2.23billion

• Profit: US$ 509.98 million
• Employees: 286,090

• Extended its store portfolio by 40 to a total

of 655 wholesale stores
Strong Brands under the Umbrella of
the Metro Group
Cross divisional services
 Procurement
 Logistics
 Information technology
 Marketing
 Gastronomy
 Business solutions
 Real estate
 Advertising
 Catering
 Invoice settlement
Global locations of the METRO Group
IN EUROPE
 Austria  Netherlands
 Belgium  Poland
 Bulgaria  Portugal
 Croatia  Romania
 Denmark  Spain
 France  Sweden
 Germany  Switzerland
 Greece  Turkey
 Hungary  Ukraine
 Italy  United Kingdom
 Luxembourg  Russia
 Moldova  Serbia
 Slovakia
IN ASIA IN AFRICA
 China  Egypt
 India  Morocco
 Japan
 Pakistan
 Thailand
 Vietnam
global locations of Metro Group
CORE BUSINESSES
 Cash-and-carry wholesale outlets (metro cash
and carry,Makro).

 Retail food markets (Real, Extra).

 Consumer electronic stores and home-
improvement centers (Media Markt, Satrun).

 Department stores (Galeria Kaufhof).

 HISTORY
1996
Within a period of only ten months, METRO AG is formed through a
merger of the retail companies Asko Deutsche Kaufhaus AG, Kaufhof
Holding AG and Deutsche SB-Kauf AG., METRO AG shares are listed for
the first time on the DAX German Stock Index.

METRO AG ends the year 1996 as one of the 20 largest publicly listed
companies in Germany. It also advances its internationalization process: the
company expands into Romania and China.

• 1997
METRO AG further advances its expansion outside of Germany:
international moves include the opening of the first Makro Cash & Carry
wholesale outlet in the Czech Republic.
•1998
In the most successful year in company history.
At the year end, METRO AG has become a clearly
structured corporation, with four business areas and
several cross-divisional service companies. Media
Market expands into Poland.

• 1999
METRO AG accelerated its growth in wholesale
and retail. Introduced PAYBACK - the largest and
most important customer loyalty program in
Germany.
•2000
METRO AG has developed into an internationally oriented
company with decentralized management teams. The group employs
approx 220,000 people in 22 countries.

For the first time, the group releases its financial statement for
the year 2000 in accordance to the International Accounting Standards
(IAS), to achieve greater transparency in its accounting. In addition, the
control and management system EVA (Economic Value Added) is
introduced in order to strengthen entrepreneurial thinking throughout the

• 2001
group.

80 new locations are added in 2001, including the first Metro

Cash & Carry wholesale outlets in Russia. An additional key component in
the company‟s success is the development of its sales divisions into retail
brands.
•2002
The METRO GROUP enters the Japanese and Vietnamese markets.

• 2003
The METRO GROUP Future Store Initiative, the company tests
forward-looking technologies like Radio Frequency Identification - RFID
for short.
The innovative technology facilitates more efficient warehouse
management, while rendering shopping faster, more individual and
convenient. As of April 2003, consumers experienced the future of retail
firsthand at the METRO GROUP Future Store in the North Rhine-Westphalia
town of Sheinberg.
 2009
METRO GROUP came with an efficiency and value enhancement
programme. The aim of "Shape 2012" is to achieve maximum possible
growth and customer orientation.

In December the trading and retailing company announces its

collaboration with the United Nations Industrial Development Organization
(UNIDO). The joint programme aims to fight hunger in developing
countries.

• 2010
METRO GROUP meets its customers' expectations by introducing
new sales formats and concepts. Since May, Real has been selling a range
of nonfood products online.

In November, Real opens the first drive-in supermarket in Germany.

Customers can place their orders online and pick them up at the test store
near Handover.
2011
METRO GROUP launches a new umbrella brand
communication campaign featuring the slogan 'Made to trade'.
It is a combination of conventional print ads, novel online tools
and public dialogue forums.

The company, Germany's largest retailer, owns and

operates some 2,400 wholesale stores, supermarkets,
hypermarkets, department stores, and Media Markt and Saturn
consumer electronics shops.

Nearly two-thirds of its shops are in Germany but

METRO also has stores in 29 other countries. METRO also
runs restaurants in its department stores and hypermarkets and
offers advertising and insurance to its retail chains.
METRO CASH & CARRY

 An international self-service wholesale

retailer

Largest sales division of the German trade

and retail giant METRO AG

 Operates across Europe and in some

countries of Asia and Northern Africa
 METRO CASH & CARRY
Locations 666
Number of countries 30
Sales 30.6 bn €
Total selling space 5.3 mn sqm
Headcount (annual average of 106,876
full-time equivalents)
Articles, food assortment . 20,000
Articles, nonfood assortment. 30,000
TARGETS
 Its business concept is targeted towards professional
customers rather than end consumers.

 The cash-and-carry concept is based around self-

service and bulk buying.

 METRO Cash & Carry serves to registered customers

only.

 Core customer groups are hotels, restaurants, caterers,

traders and other business professionals.
Benefits
REAL: “one store, you won't need more”
 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 nonfood assortment. The selling space of
the Real stores ranges from 5,000 to 15,000 square
meters, with store assortments including up to 80,000
items.

Real operates 314 hypermarkets in Germany and

109 stores in Poland, Romania, Russia, Turkey and
Ukrainian.
REAL
Locations 423
Number of countries 6
Sales €11.2 bn
Total selling space 5.3 mn sqm

Real employees 52,214

Total number of articles in product up to 80,000

line
Focus on the customer
Real's self-image has traditionally emphasized a high
degree of innovative ability. The company highlights its
leadership position in this area by continually deploying new
technologies in its stores.

• Real focuses on innovation and quality

Real continues to be the only German retailer that offers
self-service check-outs - at more than 60 locations - in addition
to traditional check-out counters.

In addition, all stores are already equipped with "smart"

scales that automatically recognize different types of fruits and
vegetables, thereby simplifying price labeling.
PAY-BACK :
Germany's most successful loyalty card
system.
Real continues to use the Payback
programme to foster customer loyalty. The programme
offers customers preferred buying conditions at
numerous German payback partner companies as
well, including retailers, online platforms and
insurance providers.

Since the start of the programme in March

2000, Real has acquired 9 million of the total roughly
45 million Payback card holders. The Payback card is
used in more than half of all check-out processes.
 Media Markt is the German and European market leader
in consumer electronics retailing.

With permanently low prices, an extensive network of

consumer electronics stores and an assortment of the latest
brand products that is unique in this sector, Media Markt
succeeded in coming clear ahead of its competitors as the
market leader.

The customers can test the equipment at the store and

inform themselves about their use. The well-structured store
layout helps to quickly find one's way through the multitude of
products on offer.
 METRO MARKT
Locations 662
Number of countries 15
Sales Media Markt and Saturn €20.6 bn
EBIT Media Markt and Saturn €542 mn
Headcount (annual average of full- 58,660
time equivalents)

Articles, overall assortment up to around 100,000

 Today, Media Markt stores with a selling space ranging
between 2,500 and 8,000 sqm are found in 15 European
and Asian countries. The expansion advances quickly both
in Germany and abroad. In Germany, Media Markt and
Saturn offer their customers the densest sales network in
the consumer electronics sector.

This had a lasting positive effect with the customers.

 Founding of Media-Saturn group of companies

 Fast expansion at home and abroad
 Large and diverse offer
 Efficient advertising
 Wide range of services
 The first Saturn consumer electronics store opened its
gates on Hansaring in Cologne in 1961. In the early sixties, the
company took a pioneering role in the introduction of hi-fi stereo
systems.

At the beginning of the 70‟s, Saturn was the first retailer in

Germany to offer a large selection of records for self-service at
prices well below the market average. Still today, Saturn is
famous for its comprehensive assortment of consumer
electronics: With a range of over 100,000 tracks, the head
office in Cologne offers the biggest choice of CDs and DVDs in
the world.

The company is now represented in 12 countries with

240 stores. It provides Wide range of services Large
assortment, small prices Qualified advice to the customers.
 METRO SATRUN
Locations 240
Number of countries 12
Sales Media Markt and Saturn €20.6 bn
EBIT Media Markt and Saturn €542 mn
Headcount Media Markt and 58,660
Saturn
(full-time equivalents as of closing
date 31 December)
Articles, overall assortment 100,000
Galeria Kaufhof store in Frankfurt, Germany
 Galeria Kaufhof is the management company
of the department stores operated by METRO
GROUP. These department stores are mostly located
in city centers - above all in prime inner-city locations.

Galeria Kaufhof is a modern lifestyle

provider under the slogan "Ich freu' mich drauf" (I can't
wait). The top-quality, internationally orientated
assortments are presented in lavishly furnished,
clearly structured product worlds with numerous brand
shops.
 The focus is on trendy fashion and lifestyle
recommendations combining different assortments. The
emotional appeal and inspiring product presentation stress the
value and attractiveness of the goods.

Modern lifestyle and fashion trends are staged

effectively and highlighted by special events. The overall
appearance of Galeria Kaufhof imparts an impression of quality
and exceptional ideas.

PAYBACK - an effective tool for fostering customer loyalty

Galeria Kaufhof was the first German retail

company to receive the coveted industry-wide EDDI award for
its outstanding dialogue marketing strategy.
 GALERIA KAUFHOF
Locations 137
Number of countries 2
Sales €3.5 bn
Total selling space €121 mn
Headcount (annual average of 19,275
full-time equivalents)
STRATEGY
 METRO Group's strategy
is designed to create
economic, environmental
and social value: on
behalf of customers,
employees, investors and
society.
 This means that they
strive for a sustained
positive earnings
development.
 Customer Value:
Our behavior is guided by the maxim of offering
consumers and professional customers assortments and
services at competitive prices.

 Transform:
This includes adapting assortments to local needs,
expanding our own-brand assortment, intensifying our service
activities as well as opening and tapping new sales channels,
for example through multichannel concepts and delivery
services in the wholesale business.

 Grow:
They are prepared to make targeted investments in new
product and service offers as well as selective investments in
our sales divisions' price level.
 Improve:
Cash flow optimization is another top priority because this
is the key funding source of investments. As a retail and
wholesale group, Metro focus on all areas of cash flow
optimization and intend to markedly increase our cash flow in
the coming years.

 Expand:
They see excellent possibilities for expanding there
presence in many countries where METRO GROUP does
business. This applies above all to the regions of Eastern
Europe and Asia. They will continue for targeted expansion in
these regions while markedly increasing the efficiency of their
investments.
 Innovate:
selecting innovation networks to better influence and
exploit changes in their environment.

 Sustainability:
sustainability management involves the four areas of
activity of "supply chain and products", "energy and resource
management", "employees and social affairs" and "social
policies and stakeholder dialogue".
They exercise direct responsibility and can contribute
their expertise. As a result, they can optimally tackle global
challenges regarding food safety, conservation of resources,
demographic change and sustainable consumption.
SWOT Analysis of METRO GROUP
 STRENGHTS:
- Local and international good image
- First entry – 10 years ago
- Dynamic expansion
- Import increase
- Productivity increase
- Fidelity programs
- Top quality suppliers
Weakness :

Distribution-delay of deliveries
High personnel flow
Different purchasing terms
Cost increase
Decreased no of clients
Decrease of some suppliers„
production capacity
Opportunities:

Increase of retail market and population

consumption
Geographical position and locations
allover the country (23 sites)
Increase of IT quality (data base,
surveillance systems, etc)
Threats:
Aggressive competition of new entries
Market segmentation among other
competitors
Decrease of traditional suppliers„
production
Decrease of number of clients due to new
entries
Exchange fluctuation – inflation
Price increase
 Presentation by
P.Pratibha monalisa
Pushpa Latha
Ramesh

Under the guidance of Dr.D.Lalitha Rani.