Germany: latest multichannel developments and results

Date : 30 October 2014

As Metro Group launches a new concept store with eBay, discounters in Germany improve their mobile transaction processes, while both dm and Globus announce annual results.

Metro concept store with eBay

Metro Group, eBay and Paypal have been testing a new concept “The inspiration store”, which combines a physical store with online and mobile facilities aiming to create an omnichannel experience for shoppers. The store is located in Bremen’s Weserpark shopping centre and allows customers to purchase products through digital displays inside and outside of the store as well as online via mobile or tablets. The assortment which changes every fortnight includes products from eBay traders and Metro brands - Media Markt, Real and Galeria Kaufhof.

Metro chairman, Olaf Koch, believes customers are constantly looking for a seamless shopping experience. This store is Metro’s way of trialling its omnichannel proposition with its shoppers.

Metro has also been looking at different shopping channels outside its grocery business. Its electronics division Saturn, has launched a click and collect locker service, offering same or next day delivery at remote locations.

Discounters integrate mobile transactions

Netto Marken-Discount has expanded its mobile payment service. Shoppers can pay by fingerprint with the touch ID for iPhone. Customers can use the finger tap rather than typing in their four digit pin making the payment process quicker. This comes as Alain Caparros, CEO of Rewe, announced the launch of its ‘Storekick’ app in November for Penny, its discount banner, which will offer shoppers exclusive promotions. German retailers have lagged in terms of online and digital in the past few years however, the major players are beginning to test new ideas in order to explore the opportunities.

dm reveals results which initiate expansion plans

In the year ending 30 September 2014, dm Germany announced its sales increased by €588m to €6.4bn, 9.6% up on last year. In its 12 other European markets, sales increased by €632mn, up 8.2% to €8.32bn. In Germany, dm opened 174 new stores with a net increase of 142, to take the total of 1,622 stores. During 2014/2015, dm plans to invest €190m in Germany, with plans to open 174 new stores.

Globus still winning with hypermarkets

During its financial year 2013/14, Globus Group saw its sales increase by 3.1%, up €205m to €6.39bn. Its German hypermarkets delivered sales of €3.31bn, rising by 1.5%. Hypermarkets located in Russia and Czech Republic delivered €2.09bn, up 3.1% on the previous year. In Russia, sales grew by €117.3m to €1.13bn, an increase of 27.2% before currency effects. Globus believes through further investment it will continue to expand its market position in Russia.

In fiscal 2013/14, the group invested approximately €405m, twice as much as the previous year. Globus attributes its success to how it customises hypermarkets to specific regions. In 2015, it will continue to invest in its core operations with particular focus on fresh foods, said Christian Heins, CEO of Globus Holdings.

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