METRO Wholesale

In financial year 2016/17, our METRO Wholesale segment had more than 100,000 employees. As a multi-channel supplier, we combine a wide network of modern wholesale stores with extensive food service distribution (FSD). Our customers can choose between shopping in-store, having their purchases delivered or, in France, shopping online via click-and-collect services and picking up the goods at the market. Our wholesale business is also characterised by a strong international presence: we are active in 35 countries in Western Europe, Eastern Europe and Asia. Under the METRO and MAKRO brands, we operate a total of 759 wholesale stores in 25 countries, whereas we only offer delivery services in the remaining 10 countries. The FSD area is reinforced by dedicated delivery specialists whom we acquired in recent years, including Classic Fine Foods, Pro à Pro and Rungis Express.

Focus on customer benefits

Our goal is to improve our customers’ competitive advantage to make them more successful. Most of our wholesale customers are small and medium-sized companies and sole traders. We want to help them better master their business challenges by supplying long-term solutions with superior added economic value. To achieve this, we leverage our knowledge, our resources and our global presence. We consistently align our business model with customer value and strengthen our local organisations to establish a closer relationship with our B2B customers.

We summarise our B2B customers in 3 groups: HoReCa, Trader and Service Companies and Offices (SCO). HoReCa includes hotels and hospitality businesses, restaurants, bars and cafés as well as catering companies and canteen operators. The Trader section includes small grocery stores, kiosks, street food retailers, petrol stations and wholesalers. SCO are professional service companies and organisations, such as offices and institutions.

Our markets are divided into core customer groups and regions. Depending on our primary customer focus in each country, we endeavour to offer a customised experience to suit the specific behaviour and needs of our clients. By tailoring our products, services and sales channels to local needs, we ensure that our customers enjoy coming back. This allows us to exploit the local market opportunities as much as possible.

Our METRO Own Business Day exemplifies our idea and implementation of our customer orientation. We have established it to support our HoReCa customers in their most important task: marketing their own services. Our digital platform allows business owners to publish their campaign offers to acquire new customers and advance their business.

Value leverage for the business

Based on our business model, our local companies develop and implement their individual Value Creation Plans that enable transformation and growth according to local conditions. The central organisation supports local value creation and actively manages the portfolio. Based on the country-specific and locally generated Value Creation Plans, we have identified 5 major strategic value enhancers for our wholesale business (see also wholesale strategy chart):

• We exploit the full potential of our markets across all customer groups. We accomplish this by distinguishing the wholesale stores, for example, by designing stores that are specifically tailored to the different customer groups and their respective needs. Moreover, we are replacing our centrally managed, unified growth model, which is based on the opening of new wholesale stores, with a distinguished, sustainable model focused on like-for-like sales growth.
• We continue to expand our food service distribution and the delivery business because they represent an attractive addition to our core business in the wholesale stores. In many of our markets, delivery is an important procurement channel for HoReCa customers. By expanding our delivery services, we strengthen relationships with these customers and their commitment to us.
• We are expanding the trader franchising model in countries such as Poland, Romania and especially Russia. METRO Cash & Carry operates in a similar way as a franchisor with its own brand identity. It provides products and offers additional services to the participating independent grocery stores, such as training courses and assortment consultancy. The expansion of the model helps open up new growth opportunities in relevant markets.
• We are increasing operational capacity to reduce our cost base and focus on managing liquidity in our local companies.
• We pass on our know-how to our customers by offering training programmes, further education, professional advice and more. We also develop digital solutions and tools for our customers, such as the creation of a free website or efficient personnel management. This is how we improve our business processes and make the relationship between us and our customers more efficient.

Wholesale strategy