Metro Group has seen its Q1 sales for 2016/2017 increase by 0.1% on a like-for-like basis.
Cash & Carry business
The Cash & Carry business saw sales decline by 0.3% to €8.02bn, which was influenced by currency fluctuations. On a constant currency basis, sales were up 0.7% like-for-like. Positive sales growth was driven by Spain, Turkey and China. Delivery sales rose by 16.5% and now account for 12.7% of total sales.
The acquisition of France-based distribution company Pro ȃ Pro, from Belgium-based Colruyt, was completed during the quarter, strengthening Metro's French wholesale business. For the full year, Metro remains confident it will achieve its forecast, expecting to see sales and like-for-like sales increase slightly.
Real continues to struggle
Real saw sales decrease by 4% to €2.06bn, which was a 1.7% decrease on a like-for-like basis, due to challenging market conditions. However, the new Krefeld concept store continues to perform strongly and the retailer is positive about the future, currently developing a roll out strategy. Online sales continue to grow and the integration of Hitmeister marketplace is helping drive further growth.
The proposed demerger of the Metro Group into two independent companies has been approved by the shareholders of Metro Group. The split will see the wholesale and food business separate from the electronics business, with each being run individually. This should allow both companies to focus more on their individual areas.