Investments / Divestments

In financial year 2016/17, METRO invested €827 million, considerably less than in the previous year. As part of our expansion strategy and concept and modernisation measures, our ongoing capital efficiency programme has saved us investments. At the same time, the acquisition of Pro à Pro has advanced the expansion of our delivery business. Overall, the increased focus of our expansion activities is reflected in a smaller number of 13 store openings in financial year 2016/17 (compared with 22 store openings in financial year 2015/16).

In the METRO Wholesale segment, we invested €547 million in financial year 2016/17, €66 million less than in the previous year’s period. Following our acquisition of the delivery specialists Classic Fine Foods (2014/15) and Rungis Express (2015/16) in the previous years, we have once again expanded our delivery network by acquiring Pro à Pro (2016/17). This move strengthens our competencies in the field of food service distribution in the French wholesale industry. Even including the investments for this acquisition, we have been able to optimise our investment processes in the METRO Wholesale segment. Overall, our investment volume has decreased. Our international priorities and the increased efficiency resulting from our ongoing capital efficiency programme, which comprises new, smaller and leaner formats, have made this possible. In financial year 2016/17, our expansion efforts focused on China and France. We added 5 and 3 new METRO Cash & Carry stores, respectively, to the existing store network in these countries. At the same time, we continued our expansion in India by opening 2 new METRO Cash & Carry stores in that country. Our store network in Turkey, Italy and Japan gained 1 new METRO Cash & Carry Markt store each. In Germany, 2 stores closed down; 1 store each closed down in China, India, Serbia and Ukraine.

Real invested €131 million in financial year 2016/17, €129 million less than in the previous year’s period. This decline in the investment volume is mainly due to the extension of 4 Real store lease financings during the previous year. As part of a concept conversion/modernisation project, Real opened its Markthalle Krefeld, the first store featuring the new Food Lover concept. Real closed 3 stores in Germany during financial year 2016/17.

Investments in the Others segment totalled €149 million in financial year 2016/17 (2015/16: €133 million). They related mostly to modernisation measures and intangible assets. This primarily refers to investments in digitisation/IT and the modernisation of our German logistics network. It further includes investments in start-ups such as Planday.

Divestments (including disposals of subsidiaries but excluding financial investments) generated cash for METRO in the amount of €221 million (2015/16: €642 million), mainly resulting from the sale of real estate. In the previous year, the sale of the Vietnamese wholesale activities in particular had an effect here.