Macroeconomic and sector-specific parameters¹

Global economy

The global economy delivered a better and more harmonious performance in financial year 2016/17 than in the previous year. The economic upswing continued in virtually all Western European countries, with the national economies continuing to benefit from the ongoing low interest rate environment and a moderate inflation rate. The development in Eastern Europe also presented a more harmonious picture: The countries in Central Europe continued their steady growth path. In the Eastern European countries, in particular the Russian economy, signs are pointing to an economic recovery. Turning to Asia, the growth in China continued, albeit at a slightly slower pace than in the previous years. The greater region of Asia nevertheless delivered the strongest growth rate, which was accompanied by abating economic risks. The overall global economic dynamics of the past financial year were more favourable than in the previous year.

Germany

Germany continued its stable growth across all industry sectors in financial year 2016/17. The sustained positive development on the country’s labour market bolstered Germany’s consumption and trade economy, albeit to a slightly lesser extent than in the previous year. The reinvigorated global trade further bolstered the export economy, which reverberated across the entire national economy.

Western Europe

The growth in Western Europe accelerated in 2016/17, which is in particular attributable to an improved situation within the labour market and a stimulated export activity. Some countries also scaled back their efforts to consolidate their national budgets by way of austerity programmes, which also had a positive flow-on effect on the economy. The retail and wholesale sector benefited of invigorated private consumption at a very moderate inflation rate during the past financial year. The year 2016/17 saw Spain once again spearheading the economic upswing in Western Europe.

Eastern Europe

The performance of the economies in Eastern Europe in financial year 2016/17 was distinguished by solid growth, which gained track towards the end of the financial year. The Central European countries showed an overall stable development with economic growth particularly in the Eastern European countries. When adjusting the growth rate for inflation, the Russian economy appears to also have returned to at least measured growth. This was made possible by the significant stabilisation of the Russian currency and the resultant lower inflation rate. Retail and wholesale revenues were among the sectors benefiting from the lower inflation rate and stabilisation of the labour market and returned a slight price-adjusted growth in the second half of financial year 2016/17.

Asia

The Asian economy continued to deliver strong growth rates in financial year 2016/17. The economic development in China and India was slightly weaker than in the previous year, but both countries remained on a stable growth trajectory of around 6.5% Japan’s economy has recently picked up pace, but growth continues to be subdued. Domestic revenues and growing trade of the Asian countries followed the positive economic output and were assessed as uniformly positive.

Sector development self-service wholesale

The revenues generated in the self-service wholesale trade segment have taken a positive overall development, but with differing results across the METRO regions.

Sales revenues in the German self-service wholesale trade business were regressing slightly in financial year 2016/17; the development fell marginally short of matching the overall development in the food retail industry, which once again reported a moderate growth. Revenues in the reporting year were bolstered by growing sales to commercial customers from the HoReCa sector (hospitality operators).

The self-service wholesale trade business in Western Europe mirrored the moderate overall economic growth in these countries. This growth was underpinned by the HoReCa sector, especially in Portugal and Spain.

The overall development in the Central and Eastern European countries was also characterised by moderate growth. The Turkish market has delivered an inflation-adjusted growth in revenues despite being faced with difficulties in the hotel and restaurant industry. Turning to Russia, the industry sector has recovered on the back of a falling interest rate and a general economic upswing. Growth in the Central European countries is characterised by a differentiated economic development.

The economic development in the METRO markets in Asia remained stable, with an especially positive trend in India. Growth in China experienced some moderation in comparison to the growth rates experienced in previous years. The delivery business remains a growth driver.

Real: development in the modern food retail sector

The food retailing business (excl. discounters) was stagnant and reported a slight nominal decline in sales of −0.4% in financial year 2016/17. The last 5 years’ biggest winners were supermarkets and consumer outlets with a broad product range followed by organic food outlets. The discounter business model was able to overcome a brief period of weakness, with revenues now back on a growth trajectory. With regards to hypermarkets, the operators of nationwide store networks are continuing the already commenced restructuring process. The small grocery stores are continually losing significance in the overall market.

The online food business continues to only play a minor, yet rapidly growing, role. Online sales accounted for around 1% of total food sales in the year 2016 and delivered an impressive growth of 11% in the previous year.