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driving force in International Trade and Retail 1996

Founded in 1964; formed in

Operates 2,250 stores in 32 countries

C.E.O. of Metro Group Mr. ECKHARD CORDES

C.F.O. of Metro Group Mr. OLAF KOCH

5th largest retailer in the world Largest market share in its home market

One of the most globalize retail and wholesale corporation

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 Belgium Bulgaria Croatia Denmark France Germany Greece Hungary Italy Luxembourg Moldova

Netherlands Poland Portugal Romania Spain Sweden Switzerland Turkey Ukraine United Kingdom Russia Serbia Slovakia

China India Japan Pakistan Thailand Vietnam

Egypt Morocco

global locations of Metro Group


Cash-and-carry wholesale outlets (metro cash

and carry,Makro).

Retail food markets (Real, Extra). Consumer electronic stores and homeimprovement centers (Media Markt, Satrun).

Department stores (Galeria Kaufhof).

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.

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.

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.

METRO AG accelerated its growth in wholesale and retail. Introduced PAYBACK - the largest and most important customer loyalty program in Germany.

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 group.


80 new locations are added in 2001, including the first Metro Cash & Carry wholesale outlets in Russia. An additional key component in the companys success is the development of its sales divisions into retail brands.

The METRO GROUP enters the Japanese and Vietnamese markets.

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.

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.

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.

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.


An international self-service wholesale

Largest sales division of the German trade and retail giant METRO AG Operates across Europe and in some countries of Asia and Northern Africa


Locations Number of countries 666 30

Total selling space Headcount (annual average of full-time equivalents)

30.6 bn
5.3 mn sqm 106,876

Articles, food assortment .

Articles, nonfood assortment.


Its business concept is targeted towards professional customers rather than end consumers. The cash-and-carry concept is based around selfservice and bulk buying. METRO Cash & Carry serves to registered customers only.

Core customer groups are hotels, restaurants, caterers, traders and other business professionals.


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.

Locations Number of countries Sales Total selling space
Real employees Total number of articles in product line

423 6
11.2 bn

5.3 mn sqm
52,214 up to 80,000

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.

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.

Locations Number of countries Sales Media Markt and Saturn EBIT Media Markt and Saturn 662 15 20.6 bn 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 70s, 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.

Locations Number of countries
Sales Media Markt and Saturn
EBIT Media Markt and Saturn Headcount Media Markt and Saturn (full-time equivalents as of closing date 31 December) Articles, overall assortment 100,000

240 12
20.6 bn
542 mn 58,660

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.


Number of countries
Sales Total selling space Headcount (annual average of full-time equivalents)

3.5 bn
121 mn


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.

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.

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.

selecting innovation networks to better influence and exploit changes in their environment.

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.


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

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)

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.