Metro AG

Metro AG is a German multinational company based in Düsseldorf which operates business membership only cash and carry stores primarily under Metro brand.[4] Until 2020 it was also active in general retail business through Real division, which was sold to an investor consortium.

Metro AG
TypeAktiengesellschaft
FWBB4B
ISINDE000BFB0019
IndustryWholesale
Founded
  • 1964 as Metro-SB-Großmarkt GmbH & Co. KG
  • 1996 as Metro AG
  • 2017 as Metro AG (new company)
Headquarters,
Area served
Europe, India, Japan, Kazahstan, Myanmar and Pakistan
Key people
  • Christian Baier (Co-Chairman and CFO)
  • Rafael Gasset (Co-Chairman and COO—Convenience Cluster)
  • Andrea Euenheim (CHRO and Labour Director)
  • Eric Poirier (COO—Hospitality Cluster)
  • Jürgen Steinemann (Chairman of supervisory board)[1]
Productsfood and non-food assortments
RevenueDecrease 25.632 billion (2019/20)[2]
Decrease €257 million (2019/20)[2]
Decrease −€146 million (2019/20)[2]
Total assetsDecrease €13.2 billion (2019/20)[3]
Total equityDecrease €2.1 billion (2019/20)[3]
Number of employees
97,639 (2019/20)[2]
Websitewww.metroag.de
Metro logo from 2010 until 2016
Metro head office in Düsseldorf

Unlike American warehouse clubs such as Costco or Sam's Club, it is not possible for private customers to acquire a membership for most Metro locations. As of 2020 it operates around 680 stores in 24 countries in Europe and Asia.[5]

The company was established in 1964 by Ernst Schmidt and Wilhelm Schmidt-Ruthenbeck. In 2010, it was the fourth-largest retailer in the world measured by revenues, after Wal-Mart, Carrefour and Tesco.[6] Its current incarnation was launched in 2017 as a spun-off of old Metro AG, which continued to be a consumer electronics retailer and renamed itself Ceconomy.

HistoryEdit

The history of the Metro began on 8 November 1963 in Essen with the opening of the first wholesale center under the name Metro by the brothers Ernst Schmidt and Wilhelm Schmidt-Ruthenbeck. Planning and opening of the first hypermarket under the name Metro in Essen was the responsibility of Walter Vieth, who was managing director there from 1963 to 1970.

In 1964, a year after the opening of the first Metro store, the Stöcker & Reinshagen company (the Schell family) planned a cash and carry store in Mülheim an der Ruhr. During the construction phase, the businessmens Schmidt-Ruthenbeck, Schmidt and Schell met and decided to merge their cash and carry activities. So they founded Metro-SB-Großmarkt GmbH & Co. KG with headquarters in Mülheim, later in Düsseldorf. In 1966, the third Metro was opened in West Berlin. In 1967, through a partnership with the Dutch company SHV Holdings (Steenkolen Handels-Vereeniging), a wholesale center opened in Utrecht, Netherlands under the name makro.

In 1980, Metro took over 24.9 percent of Kaufhof.

In March 1996, Metro AG was formed by the merger of Metro Cash & Carry with Kaufhof Holding AG, Deutsche SB-Kauf AG (of the insolvent company co op AG), and Asko Deutsche Kaufhaus AG (emerged from Allgemeine Saar Konsum, in which a Metro investment company had previously held shares). The group also included the Huma shopping centers, the sports retail stores Primus Sportwelt, MHB Handel AG and the office supplies and stationery manufacturer Pelikan, as well as Media-Saturn, the consumer electronics business of Media Markt and Saturn. The share of Metro AG was founded retrospectively on January 1 and listed on 22 July 1996 on the Frankfurt Stock Exchange and was part of the DAX until 2012.

In 1998, the computer retailers Vobis and Maxdata, the Adler fashion stores and Reno's shoe retailers, the discounter TiP, Möbel Roller and unprofitable Kaufhof branches were brought into the subsidiary Divaco, which was founded together with Deutsche Bank and the Gerling Group, in order to attract new buyers. In December 2003, Metro separated from its stake in Divaco KG and sold its shares to the sole shareholder and CEO, Siegfried Kaske, for 1 euro. In 2004, Metro bought Adler fashion stores back from Divaco.

Also in 1998, the 94 Allkauf -S department stores were bought, as was Allkauf Touristik Vertriebs GmbH with 160 travel agencies, which were sold again by Metro.

In 2005, Metro split off the Praktiker home improvement division, which went public as an independent company.[7]

In July 2006 Metro bought the 85 German stores of Wal-Mart, which gave up its loss-making Germany business. The Wal-Mart stores were largely integrated into the Real sales brand.[8]

In July 2008, the Extra supermarket chain with around 250 locations and sales of around 1.6 billion euro, was sold to the Rewe Group. Metro sold the Adler fashion stores to the associated company BluO in February 2009.[9]

In October 2012, Makro-Habib in Pakistan became Metro-Habib.[10]

In November 2012, Metro sold its 91 Real hypermarkets in Poland, Romania, Russia and Ukraine to Auchan for 1.1 billion euro.[11]

In 2014 Metro sold the 12 hypermarkets in Turkey.[12]

In 2017 Metro sold the last remaining four hypermarkets in Romania.[13]

On 15 June 2015, Metro AG agreed to sell Galeria Kaufhof to Canadian retail conglomerate Hudson's Bay Company for $3.2 billion.[14]

On 30 March 2016, Metro Group announced that it will be splitting into two independent companies:[15] A spin-off of the wholesale and food sector of Metro AG will be responsible for the group divisions into two independent and publicly listed companies. Both will have their own management, supervisory board and independent company profiles. Metro AG was renamed Ceconomy, comprising Media Markt and Saturn electronics stores, while a new company with the name Metro AG was formed, comprising Metro Cash & Carry and Real.

In September 2018, Metro announced that it wanted to sell the Real hypermarket subsidiary in Germany to focus entirely on wholesale business.[16] In February 2020, Real was sold to the German-Russian consortium of X-Bricks and SCP Group.[17] The deal was completed in June 2020.[18]

Wholesale OperationsEdit

 
Metro Cash and Carry logo
 
Metro store in Moscow, Russia

The company operates wholesale stores, primarily under the Metro brand, in Europe, India, Japan, Kazahstan, Myanmar and Pakistan. In Belgium, Netherlands, Poland, Portugal, Spain, and Czech Republic, it operates stores under the Makro brand, which were acquired entirely from SHV Holdings in 1998.

Belgium is the only country where non-business membership stores are operated, with 6 branches under the Metro brand. There are also 10 Metro stores for business members.

As of June 2019, Metro is operating around 769 wholesale stores in 26 countries.[19]

 
METRO in Saint Petersburg, Russia
Country Opened Wholesale
centres
Germany 1964 107
France 1971 98
China 1996 94
Russia 2001 93
Italy 1972 49
Spain* 1972 37
Turkey 1990 33
Ukraine 2003 31
Romania 1996 30
Poland* 1994 29
India 2003 28
Netherlands* 1968 17
Belgium* 1970 17
Czech Republic* 1997 13
Hungary 1994 13
Austria 1971 12
Bulgaria 1999 11
Portugal* 1990 10
Japan 2002 10
Serbia 2005 9
Croatia 2001 9
Pakistan 2007 9
Kazakhstan 2009 6
Slovakia 2000 6
Moldova 2004 3

* Operating under Makro brand.

Former Wholesale OperationsEdit

DenmarkEdit

Metro opened the first store in 1971 in the Copenhagen suburb of Glostrup. Since then stores have been opened in Aarhus, Kolding, Sydhavnen in Copenhagen and Aalborg in chronological order. Denmark was one of the first countries to begin operating delivery services out of the stores and had its own truck fleet that covered all of Denmark. Metro left Denmark in December 2014.[20]

United KingdomEdit

In 2012, Metro sold its 30 Makro stores in United Kingdom to Booker Group.[21]

GreeceEdit

In 2014, Metro sold the Makro Greek business, composed of 9 stores, to Sklavenitis.[22]

EgyptEdit

The first store opened in June 2010 and the second in October 2010.[23] Both stores were closed some time within 2013-2015, as the company started withdrawing from loss-making markets.

MoroccoEdit

In 2010, Metro sold the Makro subsidiary in Morocco.[24]

VietnamEdit

In 2014, Metro Group signed an agreement to sell its subsidiary in Vietnam, consisting of 19 stores, to the Thai group Berli Jucker worth €665 million.[25][26]

ChinaEdit

The first store in China was opened in 1996 in Shanghai in a joint-venture with the Jinjiang Group. On 23 April 2020, Metro completed the sale of the majority stake in Metro China, who operates 97 wholesale centers, to Wumei Technology Group for more than €1.5 billion. Metro’s 20% stake in the joint venture allows it to explore various strategic partnership opportunities with Wumei and its technology partner Dmall.[27]

Metro nameEdit

Metro had the naming rights for brand name Metro protected at an early stage, including an agreement with the Hollywood giant Metro-Goldwyn-Mayer, which was possible at the time without remuneration.

Metro tried to secure its usage rights for the term "Metro" in various proceedings. The Lower Saxony railway company MetroRail had to change its name to Metronom Eisenbahngesellschaft mbH, but can still call its trains Metro. Also the Metro Rapid Successors Metro Express was renamed after being threatened with legal action. In Nabburg (Upper Palatinate), the Metro discotheque was sued and had to change its name. Lawsuits against public transport companies Berliner Verkehrsbetriebe (BVG), Hamburger Hochbahn (HHA), Hamburger Verkehrsverbund (HVV) and Munich Transport Company (MVG) because of the name Metro-Bus for some main bus routes were rejected in the first instance. The second instance confirmed the judgments, but significantly restricted the use of the public transport companies of the name Metro. In the Ruhr area, the bike rental system Metrorad ruhr had to be renamed Metropolradruhr.

In 2012, in the face of an impending brand conflict, Microsoft renamed its Metro user interface of the Microsoft Windows 8 computer operating system.[28]

See alsoEdit

ReferencesEdit

  1. ^ "Metro AG Management Board". Retrieved 22 January 2021.
  2. ^ a b c d "Metro AG Annual Report 2019/20". Retrieved 22 January 2021.
  3. ^ a b "Metro AG Annual Report 2019/20 - Balance Sheet". Retrieved 22 January 2021.
  4. ^ "Contact & Directions". Metro AG. Retrieved 15 June 2014. Metro-Straße 1, 40235 Düsseldorf
  5. ^ "Metro AG Annual Report 2019/20, Goals and Strategy". Retrieved 22 January 2021.
  6. ^ Switching Channels: Global Powers of Retailing 2012 (Report). Delotte. January 2012. p. G11. Archived from the original on 26 June 2015. Retrieved 15 June 2015.
  7. ^ "METRO AG prepares for Praktiker's IPO". Metro AG. 27 October 2005.
  8. ^ "Metro übernimmt deutsche Filialen von Wal-Mart". faz.net. 28 July 2006. Archived from the original on 12 March 2007.
  9. ^ "Metro verkauft Adler-Märkte". manager-magazin.de. 13 February 2009.
  10. ^ "Administrative control: Metro Cash and Carry to take over Makro in January". The Express Tribune. 24 October 2011. Retrieved 22 January 2021.
  11. ^ "Metro sells some hypermarket operations to Auchan". Reuters. November 2012.
  12. ^ "Metro Sells Real stores in Turkey". Hurriyet Daily News. 30 June 2014.
  13. ^ "Încă o tranzacție în retail: Grupul german Metro a vândut cele patru hipermarketuri Real pe care le mai deținea în România". Ziarul Financiar. 22 January 2017.
  14. ^ "Canada's Hudson's Bay Company and Metro Group Reach Agreement over Sale of Galeria Kaufhof". hbc.com.
  15. ^ "Metro Group prepares demerger into two independent, strong wholesale and retail groups". metrogroup.de/en.
  16. ^ "Metro starts sales process for Real and focusses on wholesale business". Metro AG. 13 August 2018.
  17. ^ "Real geht an deutsch-russisches Konsortium: In einer Filiale erleben wir eine Überraschung". chip.de. 18 February 2020.
  18. ^ https://www.delimarketnews.com/buyside-news/metro-completes-sale-real-moves-toward-becoming-purely-wholesale-company-Olaf-Koch/kayla-webb/tue-06302020-0851/9967
  19. ^ "METRO". Metrog-cc.de. Retrieved 8 June 2019.
  20. ^ "METRO Cash & Carry sells parts of the Danish business to Euro Cater". Metrogroup.de. 10 October 2014. Retrieved 24 September 2015.
  21. ^ "The Grocer - Booker swoops to buy up beleaguered Makro". Retrieved 25 May 2015.
  22. ^ "Germany's Metro sells nine Greek cash-and-carry stores". Reuters. 25 November 2014. Retrieved 9 June 2019.
  23. ^ "مترو | TOP-LEVEL". Archived from the original on 16 February 2013. Retrieved 24 September 2015.
  24. ^ "METRO Cash & Carry divests business in Morocco". Metro AG. 22 November 2010. Retrieved 9 June 2019.
  25. ^ "METRO GROUP signs agreement to divest its wholesale activities in Vietnam". 7 August 2014. Retrieved 1 March 2015.
  26. ^ "Metro Vietnam acquisition by Thai retail giant under scrutiny". vnexpress.net. 4 May 2016.
  27. ^ "Majority stake in Metro sold to Wumei Technology Group in 1.5b euro deal". chinadaily.com.cn. 23 April 2020.
  28. ^ Bright, Peter (2 August 2012). "Sources claim that German retailer Metro AG is unhappy with Redmond". Ars Technica.

External linksEdit