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After the successful launch of Metro Wholesale Myanmar’s online store in March, the retailer plans to open in more locations.

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Germany-based Metro said like-for-like sales rose by 1.2% in its second quarter, with total sales rising by 0.2% in the same period, at constant exchange rates, to €6.75bn. The company said the results were driven by a positive performance in Eastern Europe, excluding Russia, and Asia. Metro noted the impact of ‘the shift of the Easter business to April and thus to Q3’.

Delivery business increases share of total sales

Metro said in Germany like-for-like sales contracted by 3.1% in Q2, while total sales fell by 4.1%, due to the shift of Easter into Q3. Excluding the effect of Easter being later in the year, Metro said like-for-like sales would have been ‘almost flat’, with a contraction of only 0.1%. It highlighted the positive effect it was seeing amongst HoReCa customers in a pilot region, where sales have risen by 5% since the beginning of the 2018/19 financial year.

Metro said that sales through its delivery operations rose ‘by around’ 9%. The pace of development means that the delivery business accounts for 20% of Metro’s total sales. It highlighted how the ‘digitalisation of the core business is… progressing’, with a digital ordering process available in 17 countries. Metro said 40% of all orders are done online.

Performance differing by region

Metro reported that in Q2, by reporting segment, that:

  • Western Europe (excluding Germany): total sales fell by 0.3%, while like-for-like sales decreased by 0.3%, affected by Easter’s shift
  • Russia: total sales fell by 2.3%, in local currency terms, while like-for-like sales decreased by 4.0%. It said the initiatives it had implemented, including investment in price, were taking effect, but more slowly than expected
  • Eastern Europe (excluding Russia): total sales increased by 6.8%, in local currency terms, while like-for-like sales also rose by 6.8%
  • Asia: total sales rose by 4.7%, in local currency terms, while like-for-like sales grew by 3.6%

Metro entering exclusive talks on disposal of Real

In the results announcement Metro said like-for-like sales fell by 5.1% at its Real hypermarket division. Total sales contracted by 6.2% due to the closure of three stores and the temporary shutting of one more, while the overall performance was affected by the shift of Easter into Q3. Metro said the gross merchandise value of its online business rose 53% to €130m.

Separately Metro is entering exclusive negotiations that could lead to Real’s sale to a consortium lead by redos. It said the exclusivity would run until the end of July, with negotiations expected to be completed in the summer. The sale will see Metro retain a 24.9% stake in Real’s operating business, but its ‘liabilities will be assumed by the new owner’. Real’s sale will enable Metro to focus entirely on its wholesale operations.

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German wholesaler Metro Group will be focusing on online sales for corporate customers and building a fresh food supply chain in Myanmar.

First new market entry since 2010

The wholesaler has partnered with Yoma Strategic Holdings Ltd, a Singapore-listed company to launch the service. Myanmar is the 36th country in the group’s network. 75% of the products will be locally sourced through partnership with farmers and food suppliers. The group employs about 150 people and will help to train and improve the skills of suppliers.

Warehouse with cold facility

The group has built a 5,800 sq m warehouse in Thilawa Special Economic Zone outside Yangon. It distributes more than 2,000 food and non-food products, with plans to increase this to 2,400 by June. About 300 customers had already accessed the website and placed orders before its official launch last Friday.  

Philippe Palazzi, COO of Metro, said, “the food wholesale industry in Myanmar offers big potentials for Metro and we believe our engagement in the trade sector will contribute to the local economic growth including the agriculture, tourism and hospitality sectors, and help upgrade the food wholesale infrastructure sustainably for the local community”.

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As Auchan looks to drive its Vision 2025 strategy faster it has announced operational changes in France and the launch of Horizon International Services. Meanwhile, at a local level it continues to evolve its channel presence, driving growth in its small store estate and with its online fulfilment.

Horizon International Services is officially launched

Following approval from the relevant competition authorities, Auchan, Casino, Metro and DIA have officially announced the launch of Horizon International Services. First announced in July 2018 the alliance will cover 47 countries across Europe, Asia and Latin America where the four companies operate.

Announcing the launch, a press release from Metro said: “Horizon International Services will enable Auchan Retail, Casino Group, METRO and DIA to pool their resources to forge balanced and innovative relationships based on a catalogue of common, scalable services, in the best interests of all actors in the supply chain, from the manufacturer through to the consumer.

Auchan Retail France appoints new management committee

Lineaires has reported that Auchan Retail France has established a new management committee. The new structure will see the retailer move away from organising itself by channel, choosing instead to group itself into eight multi-format geographical regions and one that covers franchising and partnerships.

The new management committee, with someone to be appointed to the Grand-Est region in the future, will be made up of:

  • Serge Lalleman, Nord-Pas-de-Calais
  • Olivier Barbry, Normandie / Picardie / Littoral
  • Christophe Carreyre, Centre / Loire-Atlantique
  • Frédéric Davignon, Île-de-France / Paris intra-muros
  • Olivier Louis, Île-de-France / Paris grande couronne
  • Béatrice Felter, Auvergne / Rhône-Alpes
  • Anthony Nobis, Occitanie / Méditerranée
  • Emmanuel Zeller, franchising and partnerships

Auchan reopens Pedestrian Drive in Paris…

Adding further to the competitive environment in Paris, Auchan has reopened its Drive site in rue Saint-Charles in Paris under the Auchan Drive banner. First opened in April 2014 the store enables shoppers to collect orders made on auchandrive.fr, auchan.fr and through its app between two to four hours of making the purchase.

…Expands partnership with OMV for MyAuchan banner in Romania

Auchan and OMV have signed a Memorandum of Understanding (MoU) that could lead to the expansion of their partnership. If carried through the MoU could lead to the addition of further MyAuchan stores on the latter’s forecourts. The two companies have been working together since 2017, when the trial of 15 MyAuchan stores on OMV’s forecourts began. The stores were opened in both urban and rural areas to enable the two to test the effectiveness of the business model.

Commenting on the results, OMV’s directorate for downstream oil, Radu-Sorin Caprau, said: “The results so far are encouraging, and we are happy to negotiate the expansion of the partnership and have more MyAuchan proximity stores on our Petrom stations. This association aims to add more substance to the promise of the Petrom brand, with MyAuchan stores perfectly complementing Petrom’s classic benefits: affordable, efficient fuels and stations anytime…

For subscribers wanting more on Auchan’s outlook, read our strategic outlook for the retailer.

Presentations

03/06/2019
An essential summary of trading priorities, latest developments, and other key commercial insights for Metro Group.
10/04/2019
This guide to Germany includes a summary of the country’s economic outlook, an overview of the grocery retail market, insight on the country’s leading retailers and the short-term developments that will drive the market.
18/07/2018
We look at how leading retailers in Hamburg are adapting their store formats to meet changing shopper preferences.
View all presentations

Key presentations

We identify how Metro Group plans to win over the next five years, the strategies it is putting in place to do so and where its looking to invest.

This in-depth guide to Germany explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

An essential summary of trading priorities, latest developments, and other key commercial insights for Metro Group.
 

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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