Metro in Germany: Local Profile
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Description
Product Synopsis This is a detailed report covering Metro’s store formats, private labels, history, key employees, and key financial and operational metrics in Germany. Introduction and Landscape Why was the report written? This is a comprehensive report covering Metro’s operations in Germany. It offers insightful analysis of the company and details of its store formats, private labels, history, news, key employees, and key financial and operational metrics.The report also presents market shares and investment strategies of the company’s key local competitors. What is the current market landscape and what is changing? The retail industry in Germany has been affected by the Eurozone crisis and high inflation, which have resulted in restricted consumer spending. However, the economy is relatively more stable than many other European economies. What makes this report unique and essential to read? The report provides detailed information on Metro Germany’s operations and strategy. Additionally, it presents market shares and investment strategies of the company’s key competitors in the country. Key Features and Benefits The report provides comprehensive analysis of Metro’s operations in Germany and is an essential tool to gain a detailed understanding of the company’s local operations. The report presents Metro’s Germany strategy, which is essential in understanding the direction of the company in the coming years. A unique table presenting the information of major retailers in Germany. It provides information on the retailers’ store banners, country of origin, store count and year of inception in Germany. An insightful analysis of Metro Germany providing details of its store formats, private labels, history, news, key employee biographies, and key financial and operational metrics. The report provides market share data of Metro and its key competitors in Germany. Additionally, it presents investment strategies of the company’s key competi
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Retail
Company Profile
Metro in Germany: Local Profile
Reference code: RT0179LP
Published: May 2012
www.canadean.com
TABLE OF CONTENTS
TABLE OF CONTENTS
1 Introduction ........................................................................................................................... 6
1.1 What is this Report About? ............................................................................................................... 6
1.2 Scope............................................................................................................................................... 6
2 Metro Germany – Company Profile ...................................................................................... 7
2.1 Company Overview .......................................................................................................................... 7
2.2 Business Description ........................................................................................................................ 7
2.2.1 Store formats .............................................................................................................................................. 7
2.2.2 Private labels ............................................................................................................................................ 10
2.3 Events and History ..........................................................................................................................11
2.4 Awards and Recognitions................................................................................................................12
2.4.1 Awards ...................................................................................................................................................... 12
2.4.2 Recognition ............................................................................................................................................... 12
3 Metro Germany – Key Information ..................................................................................... 13
3.1 Financial Performance ....................................................................................................................13
3.2 Operational Performance ................................................................................................................14
3.2.1 Store count ............................................................................................................................................... 14
3.2.2 Sales per store .......................................................................................................................................... 15
3.2.3 Sales per square meter ............................................................................................................................ 16
3.2.4 Revenue per employee............................................................................................................................. 17
3.2.5 Employees per thousand square meters .................................................................................................. 18
3.3 Key Employees ...............................................................................................................................19
4 Metro Germany – Corporate Strategy................................................................................ 20
4.1 Expanding Product Portfolio and Managing Multichannel Operations..............................................20
4.1.1 Metro Cash & Carry .................................................................................................................................. 20
4.1.2 Real........................................................................................................................................................... 20
4.1.3 Media Markt and Saturn ........................................................................................................................... 20
4.1.4 Galeria Kaufhof ......................................................................................................................................... 20
5 Metro Germany – News....................................................................................................... 21
6 Competitive Environment ................................................................................................... 22
6.1 Main Food Retailers in Germany .....................................................................................................22
6.2 Market Share of Main Food Retailers in Germany ...........................................................................23
6.3 Investment Plans of Competitors .....................................................................................................25
6.3.1 Edeka ........................................................................................................................................................ 25
6.3.2 REWE ....................................................................................................................................................... 25
6.3.3 Aldi ............................................................................................................................................................ 25
7 Appendix .............................................................................................................................. 26
Metro in Germany: Local Profile Page 2
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TABLE OF CONTENTS
7.1 About Canadean .............................................................................................................................26
7.2 Disclaimer .......................................................................................................................................26
Metro in Germany: Local Profile Page 3
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TABLE OF CONTENTS
LIST OF TABLES
Table 1: Metro Germany, Key Facts ..................................................................................................................................................................... 7
Table 2: Metro Private Labels ............................................................................................................................................................................. 10
Table 3: Metro Germany, Key Employees .......................................................................................................................................................... 19
Table 4: Metro Germany, Key Employee Biographies ......................................................................................................................................... 19
Table 5: Main Food Retailers in Germany........................................................................................................................................................... 22
Table 6: Market Share of Main Food Retailers in Germany (%), 2010 ................................................................................................................ 23
Metro in Germany: Local Profile Page 4
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TABLE OF CONTENTS
LIST OF FIGURES
Figure 1: Metro Germany – Revenues (US$ Million), 2007–2011 ....................................................................................................................... 13
Figure 2: Metro Germany – Store Count, 2007–2011 ......................................................................................................................................... 14
Figure 3: Metro Germany – Sales per Store (US$ Million), 2007–2011 ............................................................................................................... 15
Figure 4: Metro Germany – Sales per Square Meter (US$), 2007–2011 ............................................................................................................. 16
Figure 5: Metro Germany – Revenue per Employee („000 US$), 2007–2011 ...................................................................................................... 17
Figure 6: Metro Germany – Employees per Thousand Square Meters, 2007–2011 ............................................................................................ 18
Figure 7: Market Share of Main Food Retailers in Germany (%), 2010 ............................................................................................................... 24
Metro in Germany: Local Profile Page 5
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INTRODUCTION
1 Introduction
1.1 What is this Report About?
„Metro in Germany: Local Profile‟ is a comprehensive report covering the company‟s local operations. It has
an insightful strategic analysis of the company and details of its history, news, and events.
The report is an essential tool to gain a detailed understanding of the company, obtain analysis of the market
and competitors, as well as internal and external factors which could impact the industry.
1.2 Scope
The report identifies and presents key information about Metro in Germany. In addition, it describes its local
operations and features company news and events.
Key points covered in the reports are:
Store formats
Products and services
Financial performance
Key employee biographies
The market share of key competitors
Investment plan of key competitors
Metro in Germany: Local Profile Page 6
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Metro Germany
2 Metro Germany – Company Profile
Table 1: Metro Germany, Key Facts
Headquarters Schlüterstraße 1, 40235 Düsseldorf, Germany
Employees (FY2011) 91,189
Founded 1964
Total Sales (FY2011) EUR31.0 billion (US$43.7 billion)
Number of Outlets (FY2011) 937
Channel Hypermarkets, department stores, specialty stores, and cash and
carry
Source: company website and secondary sources © Canadean
2.1 Company Overview
Metro is a diversified retailer, which started its operations in Germany in 1964 through its first cash and carry
store in Dusseldorf. The retailer expanded its presence in the country to operate 107 Metro Cash & Carry
stores, 316 Real stores, 389 Media Saturn stores, and 125 Galeria Kaufhof stores as of December 31, 2011
(FY2011). The company‟s stores offer a wide range of food and non-food categories including fresh produce,
dairy products, frozen food, alcoholic drinks and non-alcoholic beverages, DIY products, toys, sporting
goods, consumer electronics, and jewelry among others. As of FY2011, the retailer employed 91,189
employees and is based in Dusseldorf, Germany.
2.2 Business Description
Metro is a multinational retailer, which established its first store in Germany in 1964. The retailer has since
expanded its presence in the country by opening stores under different banners, primarily Metro Cash &
Carry, Real, Media Markt and Saturn, and Galeria Kaufhof. As of FY2011, the company operated 937 stores
and had a total floor area of 5.7 million square meters.
Through its various store banners in the country, Metro offers a wide range of food and non-food products, in
addition to offering products online.
2.2.1 Store formats
Metro operates Metro Cash & Carry, Real, Media-Saturn, and Galeria Kaufhof banners in the country.
Metro Cash and Carry stores
In the wholesale segment, the company operates Metro and Makro Cash & Carry, and C+C Schaper
banners in the country. The cash and carry stores offer approximately 20,000 food and 30,000 non-food
product SKU‟s to business customers, which are primarily hotel and restaurant owners, catering firms, and
independent retailers. These stores are largely self-service stores with limited on-floor assistance. Metro
Group primarily operates its Classic format stores in the country, which typically have selling space in the
range of 10,000 square meters to 16,000 square meters.
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Metro Germany
Metro Cash & Carry in Germany expanded its online operations in November 2011 by launching an online
venue for professional customers. Being at the initial phase of launch, the online store offered limited
products, however, the company plans to extend its online product portfolio to complement its in-store
offerings.
Real (Hypermarket)
Real hypermarkets offer food and non-food products and operate from a floor space of approximately 15,000
square meters. These stores accommodate up to 80,000 products which include fresh foods, vegetables,
meat, cheese, electronic products, textiles, and many more. In an effort to provide an enhanced shopping
experience to its customers, the Real hypermarkets in Germany have launched store modernizing programs,
including “Der Meistermetzger” (The Master Butcher), under which the products are sourced from local or
regional suppliers and displayed in specific patterns. In October 2011, Real hypermarkets opened a new
drive-in store in Cologne-Porz to further enhance its customers‟ shopping experience.
In May 2010, Real hypermarket marked its online presence in the country with the launch of its online store -
at www.real-onlineshop.de. The online store offers approximately 10,000 products under multimedia, sports
& leisure, home & garden, toys, baby world, health & wellness, and other categories. The company also has
an active presence on Facebook, enabling it to be in constant contact with its customers.
Real hypermarket services:
PAYBACK cards – enables customers to gain reward points, which can be redeemed at a later stage.
Insurance services – provides customers with the option to opt for a suitable insurance, which includes
health insurance, personal liability, household, accident, travel, and others.
Customer service – includes “Your Opinion” service to collect customers‟ feedback, and “Finance
purchase” services to facilitate easy buying.
In addition, the stores organize various events to engage with their customers on a regular basis and also
extends these services further with activities such as bike finder, recipes, and newsletters.
Media–Saturn (Media Markt and Saturn specialty Stores)
Media Markt and Saturn are consumer electronics stores, which operate independent of each other and
have their own separate management team. These stores typically offer approximately 10,000 products in
the consumer electronics and entertainment media categories and operate from a sales area of 2,500
square meters to 10,000 square meters.
In addition to operating physical stores in the country, Media Markt and Saturn engage customers‟ online.
While Saturn stores started their online operations in October 2011, Media Markt launched its online store in
January 2012. The two online stores offer digital products, including films and video games, e-books, and
others. The online presence is further strengthened through the Redcoon online store, an acquired banner,
to serve price-sensitive customers. The online discounter primarily offers television sets, digital cameras,
notebooks, household appliances, and other similar products.
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Metro Germany
Media-Saturn services:
Financing – facilitates the buying decision of customers.
Delivery services – helps in delivering purchased products to customers.
Set-up and installation service – provides customers with the facility of initial product set-up and
installation.
In addition, the Media-Saturn stores offer services, such as data recovery, maintenance, and other similar
services.
Galeria Kaufhof (Department stores)
In Germany, the Galeria Kaufhof department stores operate through Galeria Kaufhof and Kaufhof store
banners. These stores offer both manufacturer brands and private labels under fashion, shoes, bags,
accessories, jewelry, and other categories, and operate from a selling space of 7,000 square meters to
35,000 square meters, primarily located in city centre locations.
Galeria Kaufhof includes the sales formats “Sports Arena (Sports Arena GmbH),” sports apparel and
accessories outlets which operate from a floor area of approximately 400 square meters to 500 square
meters and “Dinea (Dinea Gastronomie GmbH),” a service company, which operates restaurants in Galleria
Kaufhof warehouses. Dinea offers breakfast, evening snacks, fresh juices, coffee specialties, and other
items.
Galeria Kaufhof also has significant online presence in the country through its online store www.galeria-
kaufhof.de. The online store was launched in 2000 and over the years has expanded its online product
portfolio.
Galeria Kaufhof services:
Multimedia services – help customers in making informed buying decisions through multimedia options,
such as coupon printers, interactive sports simulators, and information terminals among others.
Wedding – enables customers to have tailored gifts and contents for their family and friends through the
company‟s physical stores or online store (www.galeria-hochzeit.de).
In addition, the company offers gift cards and online ordering facilities.
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Metro Germany
2.2.2 Private labels
In addition to manufacturer brands, Metro Group offers the following private labels through its various
banners:
Table 2: Metro Private Labels
Private Label Collection
Real private labels
real,- bio Mainly includes organic products
real,- Quality Mainly includes grocery items
real,- SELECTION Includes dairy, chocolates, and meat products
TiP Includes budget-price products (real,- discount range with 800 products)
Media-Saturn private labels
ok. Includes household appliances, telephones and personal care appliances, and LCD TVs
KOENIC Includes products, such as hand-held mixers, vacuum cleaners and others
PEAQ Includes products, such as headphones, televisions, notebooks, and others
ISY Includes products, such as USB sticks and cables, batteries, HDMI cables, and others.
Metro Cash & Carry private labels
Aro Low involvement products mainly sold at the entrance of the stores
H-Line Detergents and personal hygiene products catering to hotel industry
Products catering to the needs of coffee and cocktail bar, communities, hotels, corporate
Rioba offices, and others
Sigma Includes office essentials
HoReCa Select Includes kitchen essentials
Fine Food Food product for nutritionists and authorized service stations
Source: Annual Reports and secondary sources © Canadean
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Metro Germany
2.3 Events and History
1964
Metro Cash & Carry was founded in Germany.
1996
Metro AG was founded as a merged entity of Asko Deutsche Kaufhaus AG, Kaufhof Holding AG, and
Deutsche SB–Kauf AG. During the year, the company was listed on the German Stock Index, DAX
(Deutscher Aktien IndeX).
1997
Metro Group was structured into a network of 13 divisions with operations ranging from wholesale to fashion
retailing.
1998
Metro Group continued its corporate structuring process resulting in four representative business divisions
and multiple cross-divisional service companies.
1999
Metro AG started focusing on its retail and wholesale operations and expanded the scope of its Payback
loyalty cards to include Real and Kaufhof banners.
2000
Metro AG launched multiple systems, including qualification assessment and remuneration, and
development and training programs to help its staff grow. In addition, the company adopted the economic
value added (EVA) system and published its FY2000 statement in accordance with the IAS (International
Accounting Standards).
2002
Metro AG brought all its operations across the world under the Metro Group, as a single largest entity.
2003
Under its Future Store Initiative, Metro Group adopted new technologies, such as the RFID (radio frequency
identification) to enhance consumers‟ shopping experience. In April 2003, the technology was implemented
in a Metro Group store in the North Rhine–Westphalian town of Rheinberg.
2005
Metro Group launched its bilingual kindergarten “Metro Sternchen” at its headquarters in Dusseldorf,
Germany.
2006
Metro Group acquired 85 hypermarkets of Walmart, the US retail giant, in Germany.
2007
Metro Group implemented RFID technology to 180 stores in the country, including the warehouses of MGL
Metro Group Logistics. The company started providing the nutritional information of its private labels and
opened its second bilingual kindergarten “Metro Sternchen” in Germany.
2008
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Metro Germany
Metro Group increased the count of its cash and carry stores in Germany by four, resulting in 126 stores,
and increased its Media Markt and Saturn stores by 14, resulting in 367 stores. During the year, the
company published its carbon footprint report for the first time and stated the objective of reducing its carbon
footprint by 2015.
2009
Metro Group launched its “Shape 2012,” initiative to attain efficiency and become consumer centric,
appropriately altering its tag line to “Made to Trade.” During the year, the company opened eight new Media
Markt and Saturn stores in Germany, taking the total number to 375.
2010
Metro Group opened its first drive-in supermarket in the country as well as an online ordering facility. The
company increased its Media Markt and Saturn store count by 7 stores, taking the total count to 382.
2.4 Awards and Recognitions
2.4.1 Awards
2011
In June 2011, Real store in Wiesbaden was awarded Salescup by Lebensmittel Zeitung, a trade publication,
for the banners in-store bakery concept. During the same month, Real store in Rheinpark-Center in Neuss
received Cool-Cup awards from Rundschau für den Lebensmittelhandel acknowledging the store‟s
refrigerated food section. During the year, the Real store in Karlsruhe-Durlach received the “fish counter of
the year 2011” award by Lebensmittel Praxis, a trade publication.
2.4.2 Recognition
2011
The Real store in Passau was included in the top ten best hypermarkets in the country by the readers of
“Meine Familie & ich” magazine.
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Metro Germany
3 Metro Germany – Key Information
3.1 Financial Performance
In FY2011, the company recorded revenues of US$43.7 billion, an increase of 1.9% over the previous year.
During 2007–2011, the company‟s revenue increased at a CAGR of 5.5%.
Figure 1: Metro Germany – Revenues (US$ Million), 2007–2011
Source: Annual reports, company website and Canadean © Canadean
Metro in Germany: Local Profile Page 13
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Metro Germany
3.2 Operational Performance
3.2.1 Store count
Metro Germany operated 937 stores at the end of FY2011, registering a decline of 0.5% over the previous
year. This was primarily due to the decrease in the Metro Cash & Carry and Real store banners. During
2007–2011, the store count in the country registered a CAGR of -7.1%.
Figure 2: Metro Germany – Store Count, 2007–2011
Source: Annual reports, company website and Canadean © Canadean
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Metro Germany
3.2.2 Sales per store
In FY2011, Metro Germany recorded sales per store of US$46.6 million compared to US$45.5 million in the
previous year. During 2007–2011, the company‟s sales per store increased at a CAGR of 13.6%.
Figure 3: Metro Germany – Sales per Store (US$ Million), 2007–2011
Source: Annual reports, company website and Canadean © Canadean
Metro in Germany: Local Profile Page 15
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Metro Germany
3.2.3 Sales per square meter
In FY2011, Metro Germany recorded sales per square meter of US$7,545.9, an increase of 2.0% over the
previous year. During 2007–2011, sales per square meter increased at a CAGR of 7.9%.
Figure 4: Metro Germany – Sales per Square Meter (US$), 2007–2011
Source: Annual reports, company website and Canadean © Canadean
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Metro Germany
3.2.4 Revenue per employee
In FY2011, Metro Germany recorded revenue per employee of US$479,286.2, an increase of 5.3%
compared to the previous year. During 2007–2011, revenue per employee increased at a CAGR of 8.7%.
Figure 5: Metro Germany – Revenue per Employee (‘000 US$), 2007–2011
Source: Annual reports, company website and Canadean © Canadean
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Metro Germany
3.2.5 Employees per thousand square meters
In FY2011, Metro Germany had 15.7 employees per thousand square meters compared to 16.2 employees
per thousand meters in the previous year. During 2007–2011, employees per thousand square meters
registered a CAGR of -0.8%.
Figure 6: Metro Germany – Employees per Thousand Square Meters, 2007–2011
Source: Annual reports, company website and Canadean © Canadean
Metro in Germany: Local Profile Page 18
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Metro Germany
3.3 Key Employees
Table 3: Metro Germany, Key Employees
Name Job Title Board Level
Olaf Koch Chairman of the Management Board of Metro AG Senior Management
Frans W. H. Muller Chief Executive Officer (CEO) Metro Cash & Carry Senior Management (Board Member)
Mark Frese Chief Financial Officer (CFO) of Metro AG Senior Management (Board Member)
Source: Annual report, company website, secondary research © Canadean
Table 4: Metro Germany, Key Employee Biographies
Mr. Koch was appointed as the Chairman of the Management
Board of METRO AG on January 1, 2012. Prior to being
appointed as the Chairman of the board, he was included in the
Olaf Koch board as the Chief Financial Officer (CFO) since September
2009. Prior to joining the company, he has worked at various
Designation: Chairman of the Management Board of Metro AG capabilities in multiple companies, which include Permira
Beteiligungsberatung GmbH, Mercedes Car Group,
DaimlerChrysler AG, and Daimler Benz AG. He is also the
founder of IT-Networks GmbH.
Mr. Muller was appointed the Chief Executive Officer (CEO) of
Metro Cash & Carry in 2008 and ever since has been looking
after Asia, CIS and New Markets business units. He was
assigned the added responsibility of Europe and MENA
business unit in January 2012. He joined the Management
Frans W. H. Muller
Board in August 2006, prior to which for one year period 2005–
Designation: Chief Executive Officer (CEO) Metro Cash & Carry 2006, he was working as General Manager in Metro AG and
CEO of MGB METRO Group Buying GmbH. Mr. Fuller has also
been associated with Metro Cash & Carry International GmbH,
Makro Cash & Carry Nederland B.V., and KLM Cargo.
Mr. Frese is serving as the Chief Financial Officer (CFO) of
Metro AG since January 1, 2012. Prior to his appointment as
the CFO he worked as the CFO of Metro Cash & Carry
Europe/MENA until December 2011. He has also worked as
Mark Frese divisional head of Planning and Controlling at METRO AG for
the period April 2009–August 2010. In the past, Mr. Frese has
Designation: Chief Financial Officer (CFO) of Metro AG
also been associated with Kaufhof Warenhaus AG, Gemini
Medienvertriebsgesellschaft, Kaufhof Holding AG, and Merck
Finck & Co Privatbankiers.
Source: Annual report, company website, secondary research © Canadean
Metro in Germany: Local Profile Page 19
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Metro Germany
4 Metro Germany – Corporate Strategy
4.1 Expanding Product Portfolio and Managing Multichannel Operations
4.1.1 Metro Cash & Carry
Metro Cash & Carry plans to continue its focus on providing extended product offerings to its business
customers. To this end, the stores have expanded their wine assortment to offer a comprehensive range of
wines from ten different countries.
4.1.2 Real
In an effort to establish itself as a multichannel operator, Real plans to strengthen its online presence. The
company plans to increase its online product catalogue, such as the newly added pet products range.
Additionally, the company plans to continue its focus on fresh food items, which contribute significantly to
generated revenue from store operations. Real will also continue to modernize its retail stores, which
includes grouping similar product groups together and optimizing its product assortment to enhance
customers‟ shopping experience. Furthermore, as part of its initiatives to provide easy and effective service
to its customers‟, Real plans to increase the number of its drive-in stores in the country. To this end, Real
opened its second drive-in store in Cologne-Porz in October 2011.
4.1.3 Media Markt and Saturn
Media Markt plans to penetrate deeper into the country by establishing new smaller stores compared to its
traditional stores. These will primarily be located in smaller cities of the country and will offer products in
accordance with local demand. To this end, Media Markt opened two such small stores in Neutraubling and
Schleswigwere in 2011.
Saturn stores plan to continue its effort to provide efficient service to its customers. To this end, the company
will continue to integrate its online operations (started in October 2011) with physical stores, thereby
enabling customers to buy products online and collect them from nearby Saturn stores.
4.1.4 Galeria Kaufhof
Galeria Kaufhof plans to continue its efforts towards integrating its online presence with its offline store
services to efficiently serve its customers. The sales division of Metro will also continue to launch its
Wanderzeit format in the country to offer functional clothing to customers.
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Metro Germany
5 Metro Germany – News
Metro AG executes changes in the management board – December 16, 2011
Metro AG undertook management changes in its board. The new team has Mark Frese as the Chief
Financial Officer (CFO), Frans Muller to look after Metro Cash & Carry Worldwide, and Joel Saveuse to
concentrate on the Real banner.
Chairman of Metro AG’s Supervisory Board, Prof Dr Jürgen Kluge resigned from the board – October
17, 2011
Metro AG‟s Chairman of Supervisory Board, Prof Dr Jürgen Kluge resigned from the board and was
succeeded by Mr. Franz Markus Haniel. Since his appointment, Mr. Haniel has become involved with various
committees, including Presidential Committee, Personnel Committee and Mediation Committee, and
Accounting and Audit Committee.
Metro Group admitted to the Sustainability Index of Dow Jones – September 8, 2011
Recognizing the company‟s effort towards economic sustainability in areas such as integrating sustainability
with corporate management, effective ecological management, risk management, and others relating to
socio-economic performance, Metro Group has been re-admitted to the Dow Jones Sustainability Index
(DJSI). The DJSI World primarily recognizes companies with effective ecological, social, and economic
performance in their respective industries.
Metro Group extends its agreement with United Nations Industrial Development Organization
(UNIDO) to ensure effective supply chain – September 2, 2011
Furthering its effort to ensure effective food supplies and supply chain, Metro Group has extended its
agreement with UNIDO to extend its training services for producers and suppliers to larger economies, such
as Kazakhstan, China, and Indonesia, where the company has its presence. The company also plans to
extend the scope of the services sourced from UNIDO to include social, environmental, and ethical
standards.
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Metro Germany
6 Competitive Environment
A major share of the retail industry is commanded by the leading retailers in the country such as Edeka,
REWE, Aldi, and others. While the industry in general was stable, the Eurozone debt crisis affected
consumer confidence and eventually the performance of the industry. In 2011, the German economy posted
GDP (gross domestic product) growth of 3.0%, however, significant inflationary pressure resulted in real
GDP growth of 1.5%, resulting in reduced consumption in the country.
6.1 Main Food Retailers in Germany
Among the food retailers in Germany, Edeka was the leading operator in 2010 with 11,730 stores, followed
by REWE, which operated 10,583 stores. Other prominent food retailers in the country included Aldi,
Schwarz Gruppe, which operated Lidl and Kaufland; and Metro with 4,310, 3,849, and 937 stores,
respectively.
Table 5: Main Food Retailers in Germany
Store Store Banners Country of Origin 2010 Store count First Store
Chain Opened/Acquired in
Germany
Netto, E Aktiv Markt, and E
Edeka Center Germany 11,730 1898
REWE, REWE CENTER,
REWE REWE CITY, PENNY, Germany 10,583 1927
Aldi Aldi Nord, Aldi Sud Germany 4,310 1948
Schwarz
Gruppe Kaufland, Lidl Germany 3,849 1930
Metro Cash & Carry, Galeria
Metro Kaufhof, Real, Media-Saturn Germany 937 1964
Source: Annual report, company website, secondary research © Canadean
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Metro Germany
6.2 Market Share of Main Food Retailers in Germany
In 2010, Edeka was the leading food retailer in the country, with a market share of 19.3%, followed by
REWE, with 15.4%. Other prominent food retailers, included Metro, Schwarz Gruppe, and Aldi which
commanded market shares of 15.3%, 13.5%, and 12.6%, respectively.
Table 6: Market Share of Main Food Retailers in Germany (%), 2010
Store Chain Website Parent 2010 Market Share
Edeka www.edeka.de Edeka Group 19.3%
REWE www.rewe.de REWE Group 15.4%
www.metrogroup.de,
www.real.de,
www.mediamarkt.de,
www.saturn.de, and
Metro www.galeria-kaufhof.de Metro AG 15.3%
www.lidl.de,
Schwarz Gruppe www.kaufland.de Schwarz Gruppe 13.5%
www.aldi-nord.de, www.aldi-
Aldi sued.de Aldi 12.6%
Others - Others 24.1%
Source: Canadean © Canadean
Metro in Germany: Local Profile Page 23
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Metro Germany
Figure 7: Market Share of Main Food Retailers in Germany (%), 2010
Source: Canadean © Canadean
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Metro Germany
6.3 Investment Plans of Competitors
Metro Germany primarily competes with multiple food retailers in the country. The following section provides
the investment and expansion plans of Metro‟s prime competitors in Germany.
6.3.1 Edeka
Edeka plans to expand its presence in the country in 2012 by opening 200 supermarkets with an investment
of approximately EUR1.0 billion. The new stores will open primarily in local markets and will accommodate
products tailored to the needs of the local market. Moreover, the company plans to close its small and
outmoded outlets with the view on increasing efficiency and streamlining operations.
In conjunction with the Marine Stewardship Council, Edeka runs an in-store campaign to educate customers
about sustainable fisheries and offers MSC certified seafood.
6.3.2 REWE
REWE plans to penetrate deeper in the country by combining its physical store presence with online
operations. The new initiative has been launched in Hamburg and provides customers with the flexibility to
place orders and pay later as well as collecting their order at their convenience. The company is also utilizing
its online presence to efficiently engage more customers and will continue to introduce new tools, such as
the launch of personalization options in its online store www.rewe.de, enabling customers‟ to define their
priorities and receive relevant offers.
The company will also continue its initiatives on the sustainability front and cater towards customers‟
demand, as it started offering ethical coffee capsules and biodegradable coffee capsules, in its stores
through its partnership with the Ethical Coffee Company in Germany. The company also started offering
biological agricultural products under REWE Bio Natural mark.
6.3.3 Aldi
Aldi Nord plans to open new concept stores in the country with the objective of providing an enhanced
shopping experience to customers. The new stores will include a wider product range, including fresh baked
goods and will boast an innovative interior, which includes more natural light in stores and broad aisles. Aldi
has already opened one store in Castrop-Rauxel and plans to open a new store in Lübeck. The company
also plans to replicate the new store concept into all of the stores it operates in the country.
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APPENDIX
7 Appendix
7.1 About Canadean
Canadean is a full-service business information provider with in-house market research capabilities. We
specialize in analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution
and consumers.
Canadean‟s dedicated research and analysis teams consist of experienced professionals with an industry
background in marketing, market research, consulting and advanced statistical expertise. We offer value-
added market research, insight and strategic analysis and our products help companies to make better,
more informed, strategic and tactical sales and marketing decisions.
Canadean‟s areas of expertise include online research, qualitative and quantitative research, industry
analysis, custom approaches, and actionable insights. In addition Canadean has built a network of
consultants and specialist researchers across more than 60 countries, each with in-depth industry
experience and expertise enabling us to conduct unique and insightful research via our trusted business
communities.
7.2 Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any
means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
publisher, Canadean.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please
note that the findings, conclusions and recommendations that Canadean delivers will be based on
information gathered in good faith from both primary and secondary sources, whose accuracy we are not
always in a position to guarantee. As such, Canadean can accept no liability whatsoever for actions taken
based on any information that may subsequently prove to be incorrect.
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Canadean
About
Canadean has long held a reputation with FMCG markets for providing specialist business information by conducting detailed industry and consumer research, supported by insightful value-added analysis. We cover the entire spectrum
(More...)of the consumer value chain from suppliers, brand owners, distribution channels and consumer insight.
By researching markets in a holistic way, Canadean’s research methodology enables clients to make informed strategical decisions that are founded on robust and reliable data and market insights. We specialise in online survey panels, qualitative and quantitative in-country research, industry analysis and consultancy.
Canadean’s dedicated in-country researchers and analysts have an industry background in marketing, market research, consulting and advanced statistical expertise. They are well positioned in the industries themselves and therefore, best placed to ask the right questions of the right people. This network of professional researchers stretches across more than 80 countries, enabling Canadean to conduct unique research via our trusted business communities.
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