2.1 Group business model

METRO is a leading international specialist in food . The group is headed by METRO AG, which acts as the central management holding company. It performs group management functions, particularly in the areas of finance, controlling, legal and . Central management and administrative functions for METRO Wholesale are anchored within METRO AG.

In its core wholesale business, is globally represented with 678 stores in 24 countries. In addition, METRO Wholesale is active with the delivery business (Food Service Distribution, FSD) in another 10 countries. The delivery business includes the METRO delivery service as well as the delivery specialists Classic Fine Foods, Pro à Pro and Rungis Express. So far, the retail company Real constituted the 2nd of the group with 276 hypermarkets across Germany. Real forms the principal element of the discontinued business segment due to the decision of the Management Board of METRO AG to dispose of the hypermarket business.

678

stores in 24 countries

The group’s digitalisation activities are bundled under Others. These initiatives primarily refer to the activities of the Hospitality Digital business unit, which was established in 2015. The unit develops digital solutions for customers from the and creates interfaces for the digital products conventionally used by wholesale .

The Others segment also includes the service companies METRO PROPERTIES, METRO LOGISTICS, METRO-NOM, METRO ADVERTISING and METRO SOURCING. These companies provide real estate, logistics, IT, advertising and procurement services within the group.

Overview of METRO

34

countries

16 million

commercial customers

METRO Wholesale

As an , METRO Wholesale combines a wide network of modern wholesale stores with a wide-ranging delivery service (FSD). It is an internationally leading player in this field. With its segments METRO Wholesale Germany, METRO Western Europe (excluding Germany), METRO Russia, METRO Eastern Europe (excluding Russia) and METRO Asia, METRO is active in 34 countries. The sales line METRO Wholesale operates 678 wholesale stores in Europe and Asia under its brands METRO and MAKRO. Its more than 16 million commercial customers worldwide are mainly hotels, restaurants, catering companies, independent retailers, as well as service providers and authorities, to which METRO Wholesale offers a portfolio of products and solutions that has been tailored to their specific requirements. In the area of Food Service Distribution (FSD), METRO Wholesale maintains a strong presence with its METRO Service and the delivery companies Classic Fine Foods, Pro à Pro and Rungis Express. Classic Fine Foods is an Asian delivery company for a wide range of deli food. The company’s customers include premium customers such as 5-star hotels and upmarket restaurants in Asia and the Middle East. Pro à Pro delivers products to commercial customers across France, in particular in the fields of corporate catering, canteens and system catering. Rungis Express is an important upmarket food delivery company in Germany that mainly caters to customers.

Others

The Others segment includes the Hospitality Digital business unit and the METRO PROPERTIES service company among others. Hospitality Digital pools the group’s digitalisation activities for customers from the hospitality sector. These activities include the development of digital solutions, which are created to meet the needs of the HoReCa customers, and the promotion of innovative, progressive food solutions. With its real estate expertise, METRO PROPERTIES has established itself on the market as a reputable real estate company. It develops, operates and markets an international portfolio. METRO benefits from opportunities for adjacent businesses, such as sub-licensing of its comprehensive market expertise and the reputation of METRO PROPERTIES. The real estate segment makes a long-term and significant contribution to the overall business success of METRO.

Store network by country and segments as of the closing date of 30/9

 

METRO1

New store openings

Closures

METRO

 

2018

 

 

2019

1

The locations and countries of Classic Fine Foods and those of Pro à Pro and Rungis Express are not shown in the table as they relate to distribution centres and warehouses whereas this table only covers sales locations.

METRO Germany

103

0

0

103

Austria

12

0

0

12

Belgium

17

0

0

17

France

98

0

0

98

Italy

49

0

0

49

Netherlands

17

0

0

17

Portugal

10

0

0

10

Spain

37

0

0

37

METRO Western Europe (excl. Germany)

240

0

0

240

METRO Russia

93

1

0

94

Bulgaria

11

0

0

11

Croatia

9

1

0

10

Czech Republic

13

0

0

13

Hungary

13

0

0

13

Kazakhstan

6

0

0

6

Moldova

3

0

0

3

Poland

29

0

0

29

Romania

30

0

0

30

Serbia

9

0

0

9

Slovakia

6

0

0

6

Turkey

33

1

0

34

Ukraine

31

0

0

31

METRO Eastern Europe (excl. Russia)

193

2

0

195

India

27

0

0

27

Japan

10

0

0

10

Pakistan

9

0

0

9

METRO Asia

46

0

0

46

Total

675

3

0

678

Wholesale, METRO Wholesale
The METRO Wholesale segment comprises the METRO Wholesale sales line of METRO AG with 678 wholesale stores across 34 countries worldwide. This also includes the delivery business (Food Service Distribution) with the METRO delivery service and companies like the delivery specialists Classic Fine Foods, Pro à Pro and Rungis Express.
Glossary
Compliance
All measures specifying a company’s and its employees’ behaviour in accordance with legislation, established social guidelines and values.
Glossary
Wholesale, METRO Wholesale
The METRO Wholesale segment comprises the METRO Wholesale sales line of METRO AG with 678 wholesale stores across 34 countries worldwide. This also includes the delivery business (Food Service Distribution) with the METRO delivery service and companies like the delivery specialists Classic Fine Foods, Pro à Pro and Rungis Express.
Glossary
Sales line
Part of a retail company that operates outlets or stores with a specific merchandising concept.
Glossary
Hospitality industry sector
Summary term for hotels, restaurants and catering companies, often referred to as HoReCa industry sector.
Glossary
Traders
The term ‘Traders’ at METRO Wholesale refers to the customer group of independent resellers such as operators of small grocery stores and kiosks, street food vendors, gas stations and wholesalers.
Glossary
Omnichannel retail, omnichannel distribution
A development in multichannel marketing. Combination of traditional store-based retail with e-commerce, social media and applications for smartphones and tablets. Integrating all channels offers consumers a flexible and seamless shopping experience as the channels are holistically linked in all purchasing phases.
Glossary
Delivery
The delivery segment includes sales from transactions without customer contact with a METRO store. This definition also forms the basis for the operational management of the delivery business. The previous annual reports included additional revenues from transactions with delivery-related services of the METRO stores. It includes commissioning products for later pick-up or delivery of the commissioned products to the customer’s location.
Glossary
HoReCa
Short for hotel, restaurant and catering businesses. The HoReCa segment is an important customer group for METRO Wholesale.
Glossary