metro retail compendium 2015/2016

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metro retail compendium 2015/2016
METRO
RETAIL COMPENDIUM
2015/2016
NOW WITH A NEW RECIPE:
DATA, FACTS AND INFORMATION ABOUT THE RETAIL INDUSTRY IN GERMANY, EUROPE AND THE WORLD
THE SAME THOROUGH CONTENTS,
EVEN MORE DIGITAL FRESHNESS!
In order to make it even more useful to our readers, we have digitally
improved the METRO Retail Compendium – the reference work has now
become a multichannel knowledge trove. All of the compendium’s contents
are available in an online version enriched by the interactive possibilities
of modern technology. Always up to date and easy to use.
WWW.METRO-RETAILCOMPENDIUM.DE
FOREWORD
3
Dear Readers,
Smartphones, social networks, multichannel marketing – digital
technologies have long since become integral parts of our lives. They’re fundament­ally changing the way we communicate, work and live. This issue of the
METRO Retail Compendium addresses that – it features an even more userfriendly connection between the print and web issues and offers additional
benefits online at www.metro-retailcompendium.de. These include, for instance,
regularly updated data as well as an intelligent search function. As usual, the
Retail Compendium will still be released as a print publication, but now in a
more compact format and with a new design.
Our special topics illuminate trends in retail. The first dossier deals with the
generation known as the “millennials”. Through their digitally oriented lifestyle,
they influence society and the economy alike. We show you what makes millennials tick and what potential they hold. Our second focus is the hotel and food
service sector, where creativity and clever ideas are essential and business
founders must constantly reinvent themselves to keep drawing in guests. This
is anything but easy. Nonetheless, Germans are launching new enterprises in
great numbers, and we’ve taken a close look at their entrepreneurial motivation
and challenges. In our third special topic, we probe the state of service in the
retail sector. Here, we present interesting and entertaining facts in diagrams
that are both original and informative. Finally, this METRO Retail Compendium
contains comprehensive data and facts about all aspects of our industry as well
as an extensive glossary.
Regardless of whether you use our informative reference work in analogue or
digital format: We hope you enjoy your reading and that the Compendium proves
useful in your everyday work.
Best wishes from METRO GROUP
© METRO AG 2015
4
8
CONTENT
SPECIAL TOPICS
10
MILLENNIALS
32
START-UP TIME
58
SERVICE
82
DATA, FIGURES AND FACTS
84
GERMANY
86
OVERVIEW OF RETAIL AND WHOLESALE
86
Retail and wholesale in general
87
Importance of the retail and wholesale industry as an economic sector, 2014
88
The structure of wholesale in Germany, 2012
89
Distribution channels of the wholesale industry
90
The structure of retail in Germany
92
Food supply alternatives for private households
94
PRIVATE CONSUMPTION
94
Development of the financial situation of the German population, 2011–2013
95
Breakdown of private household consumption expenses in Germany, 2004–2014
96
Development of demand for consumer goods and the share of private consumption, 2004–2014
97
Development of private demand for food and non-food consumer goods, 2004–2014
98
Private demand by consumer goods group, 2014
100
Trends in private demand for consumer goods, 2011–2014 (food/FMCG and non-food)
102
PRICE DEVELOPMENT
102
Development of consumer and retail prices, 2009–2014
103
Development of consumer prices, 2014
104
ORGANISATIONAL FORMS
104
Development in the number of food retail outlets by retail format, 2009–2014
105
Market share and sales trends for food retail formats, 2008–2013
106
Sales and companies in retail and wholesale
107
Wholesale: Sales development
108
Development in online retail sales in Germany
109
THE LEADING RETAIL COMPANIES
109
The 10 largest food retailers in Germany by total sales, 2013
110
The 10 largest hypermarket and superstore operators in Germany, 2014
111
The largest discounters in Germany, 2014
METRO RETAIL COMPENDIUM 2015/2016
CONTENT
112
Drugstores in Germany, 2014
113
The 10 largest consumer electronics stores in Germany, 2014
114
The 10 largest cash-and-carry wholesalers in Germany, 2014
115
Who belongs to who? Food retail in Germany
120
EUROPE
122
CONSUMER GOODS TRADE
122
Consumer goods trade in Western Europe, 2014
124
Consumer goods trade in Eastern Europe, 2014
126
GROSS DOMESTIC PRODUCT AND CONSUMER SPENDING
126
Gross domestic product EU-15 countries vs new EU-13 countries, 2004–2014
127
Gross value added 2014 by economic sector EMU countries vs EU countries
128
Breakdown of consumer spending in private households in Europe, 2013
130
Value added tax rates in Europe, 2015
132
RETAIL
132
Development of retail sales in Western and Eastern Europe, 2011–2014
133
Number of outlets in modern general food retail (> 400 m 2), 2014
134
Consumer prices and retail prices in Europe, 2011–2014
135
Share of sales accounted for by private labels in the European food retail sector, 2014
136
Food retail space density in Western and Eastern Europe
138
THE LEADING RETAIL COMPANIES
138
Concentration of companies in European food retail, 2013
139
The 10 largest food retailers in Europe, 2013
140
The 10 largest consumer electronics stores in Europe, 2014
141
The 10 largest department stores in Europe, 2013
142
Who belongs to who? Food retail in Europe
152
WORLD
154
CONSUMER GOODS TRADE
154
Consumer goods world trade, 2014
156
THE LEADING RETAIL COMPANIES
156
The 10 largest food retailers worldwide, 2013
157
The 10 largest consumer electronics stores worldwide, 2014
158
The 20 largest food retailers according to food sales, 2013
160
International presence of selected retail and wholesale companies, 2014
162
Who belongs to who? Food retail worldwide
5
© METRO AG 2015
6
CONTENT
172
GLOSSARY – ALL ABOUT RETAIL
174
SPECIAL TOPICS
180
A–Z
242
RETAIL COMPANIES AS EMPLOYERS
244
EMPLOYEES IN RETAIL
244
GERMANY
245
EUROPE (EU-27)
246
OCCUPATIONS IN RETAIL
246
1. GERMANY‘S DUAL VOCATIONAL TRAINING SYSTEM
246
2. ALLIANCE FOR INITIAL AND FURTHER TRAINING
247
3. C ONTINUING PROFESSIONAL DEVELOPMENT (CPD) AND
ADVANCED QUALIFICATIONS IN RETAIL
METRO RETAIL COMPENDIUM 2015/2016
CONTENT
248
ADDRESSES
250
CALENDAR OF EVENTS
252
MEDIA AND LITERATURE
254
INFORMATION ABOUT METRO GROUP
256
METRO GROUP AT A GLANCE
256
1. WHO WE ARE
257
2. GROUP STRUCTURE
258
3. METRO GROUP’S SALES LINES
259
4. STRATEGY FOR CUSTOMER VALUE
260
5. METRO GROUP IN FIGURES
262
6. COUNTRY OVERVIEW
264
7. CORPORATE RESPONSIBILITY
266
8. CORPORATE BOARDS OF METRO GROUP
266
METRO GROUP CONTACT DATA
267
7
IMPRINT
© METRO AG 2015
8
SPECIAL TOPICS
SPECIAL TOPICS
M E T R O R E T A I L C O M P E N D I U M 2 0 1 5/2 0 16
SPECIAL TOPICS
P. 10
P. 32
P. 58
MILLENNIALS
START-UP TIME
SERVICE
CONNECTED,
DIGITAL &
DIFFERENT
FOOD SERVICE
ENTREPRENEURS
SERVICE
IN RETAIL
9
© METRO AG 2015
10
SPECIAL TOPICS / MILLENNIALS
MILLENNIALS
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
11
THE MAJORITY OF MILLENNIALS
ARE ALMOST ALWAYS OR
MOSTLY ONLINE.
How much time do you spend online and how much offline?
2%
Almost always offline
8%
Mostly offline
23%
Almost always online and connected
28%
Mostly online and connected
39%
A mix of both
© METRO AG 2015
12
SPECIAL TOPICS / MILLENNIALS
CONNECTED,
DIGITAL &
DIFFERENT
They’re constantly checking their smartphones, are permanently online and
have hundreds of friends on the web: the young people of today are just wired
differently. They’re turning our communication habits upside down, and are
posing new challenges to society. Only those who truly understand this age
group can fully tap its potential.
01
SPECIAL TOPIC ONLINE
Links on page 31
W
FURTHER TOPICS
Links on page 31
G
GLOSSARY LINK
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
13
© METRO AG 2015
14
SPECIAL TOPICS / MILLENNIALS
Today’s generation of 18- to 34-year-olds grew up in an era
marked by major changes, including globalisation, climate change and
the advancement of digitisation. New technologies are opening up various
opportunities and influencing the way we live, work and communicate.
They are swiftly taking foot in our everyday lives, especially the lives of
those born between 1980 and the mid-1990s. Today’s young adults, also
known as millennials, will account for roughly half of the world’s
workforce by 2020. For this reason alone, they are one of the main target
groups for businesses. How do millennials communicate and consume?
What expectations do they have for their work and their employers? And
what’s the best way to tap this potential to the fullest?
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
15
By
2020,
millennials will
account for roughly
half of the world’s
workforce.
© METRO AG 2015
16
SPECIAL TOPICS / MILLENNIALS
57 per cent of millennials visit
Facebook at least once a day.
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
17
A NEW
COMMUNICATION
PATTERN
02
The vast majority of young adults today
are optimists: according to a study conducted by
Telefónica, 81 per cent of German millennials
identify themselves as rather or very optimistic.
They care about others and are ambitious. What
makes them special is that they grew up in a
world in which new technologies are taken for
granted. For millennials, smartphones, the
mobile internet and social networks are an
essential part of everyday life. Not only do the
technical capabilities of devices continue to
evolve, but user behaviour does so as well.
­A lthough millennials do use their smartphones
to make phone calls, they mainly use them to read
and send text messages and communicate on
social networks.
Millennials are content snackers. G p. 174 Information must be short and sweet so they can
consume it in small bites – regardless of whether
they are on the go or at home watching TV. This
is also reflected in the variety of platforms used
by millennials to access news and information
– and millennials are most active in social networks. A study conducted as part of The Media
Insight Project identified seven social networks
that are particularly popular. 57 per cent of
millennials visit Facebook at least once a day
to catch up on the latest information. Millen­
nials also often use networks such as YouTube,
Instagram, Twitter, Pinterest, Reddit and Tumblr
to look for news or information.
For businesses, this form of communication
poses a new challenge. Information is avail­
able everywhere, and millennials consume
it constantly. This, in turn, means that it is increasingly difficult to reach this target group.
© METRO AG 2015
18
SPECIAL TOPICS / MILLENNIALS
03
PRACTICAL
EXAMPLES
Given the communication and networking
preferences of the young target group, many companies now specifically use social media channels
to promote products or push product development.
One example of such a social media strategy can
be seen with the cosmetics manufacturer L’Oréal.
The company’s profile on Facebook alone has
nearly 19 million fans. L’Oréal’s strategy is to be
present at every step in the customer’s decisionmaking process. Above all, social media channels
should accomplish one thing: generate attention.
Through tutorials and product videos, prospective
customers are encouraged to choose a L’Oréal
product. After the purchase is made, the company
re-establishes contact with the consumer on
Facebook, YouTube or Twitter in order to secure
long-term customer loyalty.
Many companies are now focusing on their own
blogs for external communication. The corporate
blog of the automaker Audi, for example, gives
journalists, bloggers and other influential web
users a look behind the scenes. Audi uses this
platform to present its products, technology and
design, but also to provide information on career
opportunities, sustainability and sports. The company relies mainly on the provision of background
information and less on interaction with readers.
The METRO GROUP sales lines can also be found
on relevant platforms such as Facebook, Twitter
or YouTube. Real’s official Facebook profile, for
example, has more than 420,000 fans. This new
form of customer communication is supplemented
by a Twitter account and a YouTube channel that
informs customers about loyalty campaigns,
among other things. METRO Cash & Carry
Germany provides information on discount
offers and events on a daily basis to its more than
130,000 Facebook fans and shares posts from
other social media channels. In addition, METRO
Cash & Carry’s “Genussblog” regularly publishes
recipes and cooking ideas.
01www.metro-genussblog.de
METRO RETAIL COMPENDIUM 2015/2016
W
SPECIAL TOPICS / MILLENNIALS
19
The “Genussblog”, a digital pool f illed
with countless recipes and interesting
posts about the latest food trends,
is prepared with love and passion by
employees of METRO Cash & Carr y
lik e Anna Friedhof.
© METRO AG 2015
20
SPECIAL TOPICS / MILLENNIALS
NEW
CHALLENGES
FOR EMPLOYERS
32%
of German millennials
wish for an
open and caring
work environment.
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
04
21
Finding new employees is a strategic
task for any company. Fully understanding and
specifically addressing prospective employees is
all the more important. Many of the millennials
are still in their studies or vocational training and
will surge onto the labour market in the coming
years. According to a global study conducted by
Telefónica, 49 per cent of German millennials
hope to find a well-paid, stable job in the next
ten years. Having children (16 per cent), owning
a home (13 per cent) and getting married (12 per
cent) are secondary objectives. 51 per cent of
respondents are also professionally mobile and
would like to work abroad. Income only plays a
minor role for this target group. For 47 per cent,
the key goal is to find a working environment that
they can enjoy. Their second objective is to achieve
a good work-life balance. Millennials therefore
place great emphasis on flexible working hours.
An adequate work-life balance and the oppor­
tunity to grow in their jobs are factors that are
some­times more important to them than financial
compensation: earning a reasonable salary ranks
in third place, but also their wish for an open and
caring work environment.
Many millennials are looking for opportunities
to make the world a better place. To pique their
interest, companies are also showing social
commitment and offering their employees the
opportunity to do community and environmental
work. Henkel, for example, is very active in the
field of corporate citizenship. Employees can
take part in donation drives or development
projects, or work alongside the company on
educational and equal opportunity initiatives.
02www.universumglobal.com
W
© METRO AG 2015
22
SPECIAL TOPICS / MILLENNIALS
E N J OY M E N T
For 47 per cent, the key goal
is to find a working environment
that they can enjoy.
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
23
MOBILITY
51 per cent of respondents
are also professionally
mobile and would like to
work abroad.
DEMANDS
An adequate work-life balance
and the opportunity to grow in
their jobs are often more import ant
to this generation than f inancial
compensation.
© METRO AG 2015
24
SPECIAL TOPICS / MILLENNIALS
Enterprise
2.0:
A highly networked
company,
both internally
and externally
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
25
DIGITAL TECHNOLOGY
IN THE
WORKPLACE
05
With their specific ideas and desires,
millennials are not only influencing recruitment
strategies – they are also bringing changes to the
work environment. As employees, they are
driving digital technology. This also changes how
employees communicate and work together.
According to a study by PwC International,
millennials expect to be able to use online tools
and smartphone apps to perform their jobs. Consequently, digital technologies and social networks are increasingly making their way into the
workplace. It’s a win-win situation for employers
and employees, both of whom are now using the
power of networks to their benefit.
Examples of this include the initiatives undertaken by companies such as the Bosch Group or
METRO GROUP. In order to facilitate global networking and drive innovation processes, Bosch
has introduced the social business network
Bosch Connect. The idea is to enable faster, more
flexible and more efficient communication
between employees, customers and other stakeholders. In this way, Bosch is promoting the
development to a highly networked company,
both internally and externally – a so-called
Enterprise 2.0 business. Bosch Connect has
helped the company speed up many processes.
For example, an extensive decision-making
process for production involving nine of Bosch’s
stakeholder groups was shortened from an
average of four weeks to six working days.
CLOUD
METRO GROUP is also focusing on a modern
work environment: with the introduction of an
internal social network, the company has created
a platform where all of the group’s employees
around the world can exchange information and
work together on projects. The design of the
network is similar to social networks that are
already well known; this offers employees a
familiar interface and a tool that they can easily
integrate into their daily work.
© METRO AG 2015
26
SPECIAL TOPICS / MILLENNIALS
POTENTIAL FOR
RETAIL
06
As customers, millennials pose add­
itional challenges for industries such as retail.
Ongoing digitisation, which characterises the
lives of millennials and is playing a growing role
in daily work, is transforming the retail sector.
The question of whether stationary retail will
soon become obsolete is an area of debate
among experts. Stores that operate through
stationary retail alone are no longer attract­
ing millennials; instead, it is the combination
of online and offline channels that promises
the greatest success. Millennials are constantly connected, and this is reflected in their pur
chasing behaviour: when entering a store to buy
a product, they have often already researched
products, prices and other offers online. This
phenomenon is called the ROPO effect G p. 174
– research online, purchase offline. Mobile
internet has only reinforced this effect. Thanks
to the smartphone, shopping can now even
take place online and offline at the same time.
According to a study by the German market
research institute GfK, around 40 per cent of
20- to 29-year-olds use their mobile phone while
they are in a store. 42 per cent of them grab their
mobile phones to compare prices.
METRO RETAIL COMPENDIUM 2015/2016
SHOP FINDER
SPECIAL TOPICS / MILLENNIALS
27
A D D TO CA R T
© METRO AG 2015
28
SPECIAL TOPICS / MILLENNIALS
CREATING SYNERGIES
BETWEEN SALES CHANNELS
07
To meet this challenge, retail is moving
towards multichannel and omnichannel strategies.
The line between these channels is becoming increasingly blurry. Many millennials, however –
especially the older members of this age group
– continue to shop in stores. A study by the
BearingPoint Institute refers to a subset of
millennials born between 1980 and 1990 as
swing shoppers G p. 175 in this context. It doesn’t
matter to them whether they shop online or offline,
because they grew up with stationary retail but
also understand the benefits of shopping online
and are exploiting these. However, swing shoppers
have no preference on where to shop, making them
a target group that continues to strengthen station­
ary retail.
The sporting goods manufacturer Nike, on the
other hand, is focusing on cooperating with
bloggers. The company offers fashion and fitness
bloggers free products, which they present to
millennials on their blogs. The Ultra City collection
of women’s shoes, for example, sold out within just
a few hours after a series of influential bloggers
showcased the shoes on Instagram and Facebook.
Combining the different sales channels is impor­
tant to maintain customer loyalty among millennials in the long term. The British fashion house
Burberry launched a pilot project to attract this
target group to their flagship store in London.
The shop is set up as a digital showroom: the
walls of the store feature large screens showing
videos and livestreams. In addition, the Burberry
garments are equipped with RFID chips so that
they can interact with the digital elements in
the store. When a customer picks up an item of
clothing and approaches one of the screens in the
store – for example, in the dressing room – he or
she receives relevant information, for instance,
about the production process, but also inspiration
from the catwalk.
Communication, shopping and work – each of these
areas has been set in motion by the millennials.
Numerous examples already show the effects of
their reasoning and behaviour, and how industry
and society can and must react. One thing is clear:
processes are speeding up, as rapid change is
what young adults understand and experience.
Millennials expect companies to communicate
in real time and directly with them – whether in
stores, in social networks or on blogs. This means
that companies have to reposition themselves and,
for example, populate their social media channels
with target group-oriented content on a daily basis.
Attracting millennials as future employees and
idea generators also takes a targeted approach.
Corporate blogs and authentic employee videos are
METRO RETAIL COMPENDIUM 2015/2016
S TO R E
SPECIAL TOPICS / MILLENNIALS
the latest trend in this area. Such approaches are
no longer optional or only designed for a specific
target group, but have instead become a strategic
necessity. Millennials will account for roughly
half of the working population worldwide by 2020.
Only those companies who are well prepared will
29
succeed in the global race to attract these young
minds, and will push their own business to be
connected, digital and different.
03 uk.burberry.com
W
© METRO AG 2015
30
SPECIAL TOPICS / MILLENNIALS
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / MILLENNIALS
S P E C I A L TO P I C O N L I N E
31
WEBLINKS
W
01
CONNECTED, DIGITAL & DIFFERENT
www.metro-retailcompendium.de/en-millennials-1/
02
A NEW COMMUNICATION PATTERN
www.metro-retailcompendium.de/en-millennials-2/
03
PRACTICAL EXAMPLES
www.metro-retailcompendium.de/en-millennials-3/
04
NEW CHALLENGES FOR EMPLOYERS
www.metro-retailcompendium.de/en-millennials-4/
05
DIGITAL TECHNOLOGY IN THE WORKPLACE
01
www.metro-genussblog.de
Food trends, recipes, interesting finds and discussions
around the topic of food (in German).
02
www.universumglobal.com/de/2014/11/
erste-weltweite-millennial-studie
The goal of the study was to better understand the
millennials and to gain insight into this important
demographic group.
03
uk.burberry.com/store-locator/
regent-street-store
The Burberry Flagship Store located in London
connects the physical and digital world via
interactive elements.
www.metro-retailcompendium.de/en-millennials-5/
06
POTENTIAL FOR RETAIL
www.metro-retailcompendium.de/en-millennials-6/
07
CREATING SYNERGIES
BETWEEN SALES CHANNELS
www.metro-retailcompendium.de/en-millennials-7/
SOURCES
PwC International,
Millennials at work, 2012
Telefónica,
Global Millennial Survey, 2014
The Media Insight Project,
How Millennials Get News, 2015
www.gfk.com
© METRO AG 2015
32
SPECIAL TOPICS / START-UP TIME
START-UP TIME
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
33
THE
ENTREPRENEURIAL
SPIRIT
What motivates people to become self-employed in the
hotel and food service sector?
87%
want most of all to realise their
own ideas and to be independent.
88%
want to be
professionally successful.
89%
have a strong passion
for business.
© METRO AG 2015
34
SPECIAL TOPICS / START-UP TIME
FOOD SERVICE
ENTREPRENEURS:
FACING
CHALLENGES
HEAD-ON
01
SPECIAL TOPIC ONLINE
Links on page 55
W
FURTHER TOPICS
Links on page 55
G
GLOSSARY LINK
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
35
Stress, worries, a lack of customers? Contrary to popular belief,
entrepreneurs and self-employed individuals in the hotel and food service
industry are often happy and have a sense of fulfilment. But there are also
difficulties and challenges, such as shortages of skilled workers, financial
uncertainty and the need to constantly reinvent oneself. How does one
overcome these obstacles? What services and possibilities are there to
support entrepreneurs and business owners in the food service sector?
And how can one continue to excite customers in the long run?
© METRO AG 2015
36
SPECIAL TOPICS / START-UP TIME
A stylish cupcake café opens up on the corner; one street away,
a new craft microbrewery is advertising their home-brewed beer and a
start-up is attracting customers online with the promise of “online delivery
of freshly prepared organic meals”. Whether hotels, restaurants, cafés or
snack bars, the hospitality industry is multifaceted and, along with skilled
crafts and retail/wholesale, is one of the three most popular sectors for
entrepreneurs in Germany. This is one finding of the METRO Start-up Study
published in 2014, a representative survey conducted by METRO Cash & Carry
and the German market research company GfK. Perhaps surprisingly, more
than three quarters (77 per cent) of food service providers are satisfied
or very satisfied with owning their own business. “Being independent
and directly experiencing customers’ reactions are key factors in feeling
satisfied with self-employment,” explains Dr Dietmar Grichnik, Professor of
Entrepreneurship at the University of St. Gallen. “Seeing that their actions
are effective is often more important to entrepreneurs than the prospect of
making lots of money fast.” This high level of satisfaction in the food service
industry was confirmed by another statistic in the study: nearly two thirds
(65 per cent) of study participants would opt for self-employment in the
industry again.
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
37
The hospitality
industry is one of the
TOP 3
most popular
sectors for
entrepreneurs
in Germany.
© METRO AG 2015
38
SPECIAL TOPICS / START-UP TIME
FIRST INGREDIENTS
FOR ENTREPRENEURS
02
So is Germany an entrepreneurial paradise for the hospitality sector? The answer isn’t
quite that simple. While entrepreneurs may be
willing to take on responsibility for a business
and be eager to create something on their own,
they are still faced with challenges and risks.
“Particularly in Germany, the fear of failure is a
significant hurdle,” explains Grichnik. “In the US,
failure is often viewed in a positive light – after all,
you gain experience from a failed business. But
here in Germany, it continues to carry a stigma.”
Hamburg-based start-up coach Manfred Troike,
who specialises in the food service industry, is familiar with this problem: “It’s not easy to keep a
business going. Things often run smoothly in the
first year, because people are curious about the
new offer. After that, success depends on whether
regular customers can be secured over the long
term.”
The f irst ingredient for
business success is clearly
good preparation.
Often, newcomers lack the necessary know-how.
The German Chambers of Commerce and Industry
(DIHK) noted that, while the number of wellprepared and qualified entrepreneurs is on the
rise, there are still areas of weakness. Many
aspiring entrepreneurs still lack business knowhow or sufficient industry knowledge. The first
ingredient for business success is clearly good
preparation. It requires a great deal of knowledge
to get a business off the ground. How do I develop
a sustainable business concept? What should I
consider when choosing a location? What types of
METRO RETAIL COMPENDIUM 2015/2016
financial solutions are available? The spectrum of
competent business contacts is broad, ranging
from employment agencies to the chambers of
commerce and industry. The database of the online
portal www.existenzgruender.de alone contains
around 25,000 addresses of public institutions that
provide entrepreneurs with practical help and
advice. There are also numerous other support
services available, from workshops and online
training sessions to competitions that promote
outstanding business ideas. One example is the
“Gastro-Gründerpreis” (Gastronomy Start-up
Award), which honours the top five start-up
concepts from Germany, Austria and Switzerland
each year.
SPECIAL TOPICS / START-UP TIME
39
marketing
funding
choice of
location
industr y
knowledge
business concept
promotion
© METRO AG 2015
40
SPECIAL TOPICS / START-UP TIME
B A R R I E R S T H AT
S E L F - E M P LO Y E D FA C E
82
78
79
74
70
LACK OF QUALIFIED STAFF
51
42
49
50
50
NEED FOR
CONSTANT INNOVATION
47
40
42
50
50
FINANCIAL
UNCERTAINTY
Numbers in %
Restaurant/tavern/pub
Hotel/bed and breakfast/inn
Café/bar/ice cream parlour
Takeaway
Catering company
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
41
The main obstacles for entrepreneurs in this sector include a lack of
qualified staff, financial uncertainty and the need to constantly reinvent
and develop oneself. This is one finding of the METRO Start-up Study:
www.metro-startupstudy.com
01PLAN AND PREPARE
W
© METRO AG 2015
42
SPECIAL TOPICS / START-UP TIME
SEEKING, FINDING
AND RETAINING
QUALIFIED STAFF
03
If you ask self-employed professionals
what the greatest challenge in the hotel and
food service industry is, you’ll usually receive the
same answer: “Good staff are hard to find.” The
lack of qualified staff is the biggest drawback
for roughly 80 per cent of those surveyed in the
METRO Start-up Study. Existing businesses and
those seeking to start their own business are
equally affected. The reasons for the shortage are
diverse, but demographic change, for example,
plays an important role. In addition, professions
in the hotel and food service industry have a
rather unappealing image. Finding the next
generation of qualified employees is not easy, and
the amount of vacant traineeships is high.
Politics and industry are looking for solutions.
But what can each individual restaurateur do to
find qualified staff? It starts with the job posting:
nowadays, ordinary adverts in the local newspaper are often not enough. Rather, what is
required is active sourcing G p. 176, meaning
finding candidates through blogs and social
networks such as Facebook. Online career
platforms that are tailored to the industry are
another option. Some well-known examples are
job networks such as Jobsterne or the international portal Culinary Agents. The latter
successfully matches jobs and professionals in
the United States and is now also active in Eur­
ope and Asia. Since April 2015, METRO GROUP
has been a participating partner of the online job
portal and is supporting its further expansion,
at first in France and Italy. Culinary Agents has
made the search for qualified staff easier for food
service providers, hoteliers and caterers, bringing
together businesses and job seekers.
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
However, this is still a challenging task. “Recruitment using job postings takes a lot of time –
time that many small businesses don’t have,
particularly in the start-up phase,” says Manfred
Troike. The start-up coach recommends having
expert partners on board – even before the
business is founded – who have experience in
the food service industry: “As a rule, it’s always
better to start as a team so that several people
can shoulder the tasks, provided the partners
have the right chemistry.” Troike believes that
support from others is an important factor for success: “It’s best to have family members, friends
and colleagues from your professional network
lend a hand – especially at the beginning.”
43
For roughly
80%
of those surveyed,
the lack of
qualified staff
is the biggest
drawback.
© METRO AG 2015
44
SPECIAL TOPICS / START-UP TIME
For established food service providers, there’s
another option: thinking outside the box. What
about hiring an employee from abroad? Or a quali­
fied employee from the “50-plus” generation? Or
a person with a disability? Experts recommend
tapping into diversity: a workforce with a variety of
different people offers a rich pool of knowledge, experiences and perspectives – and thus a potential
source of creativity and innovative ideas. And those
who dare to strike new paths often receive
financial support: for example, so-called integration
grants can be applied for when employees are hired
who do not (yet) have the required professional
experience.
“As a rule, it ’s always better
to st art as a team so that several
people can shoulder the t asks,
provided the partners have the
right chemistr y.”
02ATTRACT QUALIFIED STAFF
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45
© METRO AG 2015
46
SPECIAL TOPICS / START-UP TIME
49%
Almost half of self-employed individuals f ind it diff icult to const antly
reinvent themselves in order to keep
meeting customer expect ations.
METRO RETAIL COMPENDIUM 2015/2016
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47
ALWAYS KEEP UP
WITH THE TIMES
04
According to the METRO Start-up Study,
the lack of qualified staff is not the only challenge
faced by entrepreneurs in the hotel and food service
industry: almost half of self-employed individuals
(49 per cent) find it difficult to constantly reinvent
themselves in order to keep meeting customer
expectations. Indeed, hardly any other sector is as
fast-paced as the hotel and food service industry.
Whether it’s theme dining, street food festivals or
vegan restaurants – new trends are always popping
up. Many newcomers are eager to experiment: a
Berlin-based start-up has mixed coffee and soda
and is marketing the new beverageunder the name
Kaffeenade. The founders of TeaTales want to
­become the Starbucks of the tea world. And the
Hamburg-based company The Big Balmy sells
gourmet burgers from a food truck, following a
trend that began in the United States: a new kind
of mobile snack bar offering high-quality dishes
made from the finest ingredients.
“Once the novelty of the business has worn off,
entrepreneurs must try to keep things rolling and
remain appealing to customers in the long run,”
Manfred Troike explains. It’s crucial to distinguish
real trends from passing fads. Homemade and
local products, for example, will probably enjoy
great demand over the long term. But even long
runners like these need to go the extra mile.
“Trends just make up the building blocks. Every
food service provider must add something extra, a
special touch, something that will set them apart
from the crowd,” Troike emphasises.
Networking is an important ingredient for success
and a way to keep up with the times. Chatting
with colleagues or visiting trade fairs such as
the Berlin Food Week, Intergastra in Stuttgart or
Internorga in Hamburg are all good ways of doing
this. METRO GROUP is also promoting exchange:
at the Innovation in Retail Meetup at the company’s
Düsseldorf location, entrepreneurs present their
ideas and business models for discussion with
other entrepreneurs, start-up experts and representatives from METRO. Shortly after its launch
at the end of 2014, the bimonthly meeting had
become a popular industry networking event.
Furthermore, every self-employed individual must
regularly question his or her approach. Opportunities to develop a business are manifold: Does
the menu need updating? Can the atmosphere
be optimised for the guest? Can advertising and
marketing be improved? The latter applies to
the internet – a restaurant without a website is
practically impossible! But many businesses are
still lagging behind: 35 per cent of hotels and
food service providers are not yet active online;
over three quarters do not use an online booking
platform.
03FOLLOW TRENDS AND
MEET CUSTOMERS’ EXPECTATIONS
W
© METRO AG 2015
48
SPECIAL TOPICS / START-UP TIME
OVERCOMING
FINANCIAL HURDLES
05
And there’s yet another challenge for
entrepreneurs in the hotel and food service industry:
45 per cent of those surveyed in the METRO
Start-up Study said that the financial uncertainty
is a burden. “It’s very difficult for food service
providers to get a loan, because banks consider
the hotel and food service industry to be risky,”
explains Manfred Troike. The good news is that, in
general, there are diverse funding opportunities
for entrepreneurs and self-employed individuals
in Germany – federal, state and EU bodies offer
public funding. Potential sources of funding are
available for all stages of setting up a business,
whether it’s for a prospective business owner who
needs start-up capital, a café owner who wants to
invest in a new refrigerated counter or a bar owner
whose revenues are low. “Unfortunately, the funding
landscape is very confusing and the programmes
are constantly changing,” adds Manfred Troike.
Expert advice is needed when it comes to seeking
out and selecting the right source of financial
support. A good place to start is, for example, the
online funding database of the German Federal
Ministry for Economic Affairs and Energy.
45 per cent of those sur veyed
in the METRO St art-up Study said that
f inancial uncert ainty is a burden.
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
“Many entrepreneurs need significantly more
capital at the beginning than initially calculated,
since, among other reasons, buffers are needed
to compensate rough starts,” Troike explains. But
there are also businesses – an ice cream truck or a
corner café, for example – that only need to make
modest investments. Microloans G p. 177 can be
the right choice for these businesses. For example,
the German federal government has established
the fund Mikrokreditfonds Deutschland specifically
to improve access to capital for small businesses.
49
“Unfortunately, the
funding landscape is ver y
confusing and the programmes
are const antly changing.”
Expert advice is needed when
it comes to seeking out and
selecting the right source of
f inancial support.
© METRO AG 2015
50
SPECIAL TOPICS / START-UP TIME
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
51
€
Another form of financing is also gaining ground:
with crowdfunding G p. 177, entrepreneurs present
their projects on specific online portals and solicit
financial support. The aim is for the projects to
be funded by “the crowd” – that is, by a pool of
people. In the United States, this source of funding
is well established in the hotel and food service
industry, but there are also examples of success in
Germany, from the frozen yogurt chain Wonderpots
to the Berlin dumpling restaurant Häppies. Even
town pubs are jumping on board: in the Bavarian
village of Altenau, a project group raised funds on
the internet to restore and reopen an old town inn
that had been closed down.
In addition, there are grants for start-up coaching.
Under certain conditions, small and medium-sized
businesses can, for example, receive financial
support from the federal government. This applies
both to food service providers who are just starting
up and to those who have been on the market for
a while.
04FIND FUNDING SOLUTIONS
W
© METRO AG 2015
52
SPECIAL TOPICS / START-UP TIME
IS THERE AN À LA CARTE
RECIPE FOR SUCCESS?
06
Whether it’s financial hurdles, high
customer expectations or the difficult search for
qualified staff, people who wish to start a business
in Germany face considerable challenges. Is
there a recipe for success? The answer is that
there’s no fail-proof recipe. But there are proven
basic ingredients. At the beginning, planning and
preparation are essential for acquiring the
necessary business skills and developing a viable
business concept. Every new business owner should
carefully examine as many sources of information
and advice as possible, and select the best fit.
“Food service providers must cover various areas
of expertise: they must be good hosts, organise
marketing and still keep their eyes on commercial
aspects,” Manfred Troike explains. “If they can’t do
something themselves, they must compensate for
this through friends, business partners, consultants
or tax professionals.”
Furthermore, every entrepreneur must be able to
deal with the risk of failure. “Self-employment has
a lot to do with being courageous, staying true to
yourself and holding on to your idea even in difficult times,” says Troike. The basic formula – even
beyond the start-up phase – is: Don’t bury your
METRO RETAIL COMPENDIUM 2015/2016
Don’ t bur y your head in the sand
when challenges arise; t ake action and
reach out for help. St ay informed,
seek advice and network!
head in the sand when challenges arise; take action and reach out for help. Stay informed, seek
advice and network!
To continuously appeal to customers, it’s important
to have a feel for trends. “Even if there’s a lot
to do, every food service provider should stay
curious and keep their eyes open to what’s going on
around them,” explains Manfred Troike. Whoever
looks at the diverse demands and requirements
and assumes that entrepreneurship is only for
a chosen few is mistaken. Prof. Dietmar Grichnik, an expert in starting businesses, encourages
people to make the plunge into self-employment:
“Each and every one of us has the potential to
start a business and be an entrepreneur. Entrepreneurs are made, not born. Don’t try to predict the
future – shape it yourself!”
SPECIAL TOPICS / START-UP TIME
53
“Entrepreneurs are made, not born.
Don’ t tr y to predict the future –
shape it yourself!”
© METRO AG 2015
54
SPECIAL TOPICS / START-UP TIME
CHECKLIST
FOR START-UPS
10 steps to business success
01
Perform a self-assessment
I s self-emplo y m e nt the rig ht p a th for m e ?
D o I h av e su ff ic ie nt q ual if ic ations ? I n w ha t
areas do I s til l ne e d to l e a rn m ore ?
06
Comply with official requirements
W hi ch la w s a p p ly t o s t a r t - u p s ? Wh a t fo r m a li t i e s
m u s t b e f u lf i lle d ? Wh i ch o f f i ce s d o I n e e d t o
visit?
02
Gather information and seek advice
Wh at are t h e opp ortunitie s and ris k s ? W ha t a re
t h e su ccess fa c tor s for s tarting a b us ine s s ?
Ho w does t he hos p ita l ity s e c tor w ork?
07
Clarify tax questions
Wh i ch t a x e s a re a p p li ca b le ? Wh e n a re t a x e s
d u e ? Wh i ch t a x co n s u lt a n t s p e ci a li s e s i n t h e
fo o d s e r v i ce i n d u s t r y a n d ca n a s s i s t m e ?
03
Develop business ideas
Wh at i s speci al ab out m y c onc e p t? I s the re a
mar k et for my s e r v ic e / p rod uc ts ? W ha t is the
most p rom is ing l oc ation?
08
Develop a marketing plan
H o w ca n I a t t ra ct a n d re t a i n cu s t o m e r s ? Wh i ch
form s o f a d v e r t i s i n g w o u ld b e u s e f u l? Wh a t t y p e
o f s t a r t - u p e v e n t s w o u ld a t t ra ct a t t e n t i o n ?
04
Secure funding
Ho w mu ch st a rt- up c ap ita l d o I ne e d ? W hat
sou rces of fu n di ng are av a il a b l e ? W ha t ty p e s of
gra nts a re p os s ib l e ?
09
Monitor success
H av e p e r s o n a l o b j e ct i v e s b e e n a ch i e v e d ? Is t h e
o p e ra t i n g re s u lt a ct u a lly p o s i t i v e ? D o I h av e
co s t s u n d e r co n t ro l?
05
Create a business plan
Wh at does t h e b us ine s s m od e l l ook l ik e in d e t ai l? Wh at ear n i ng s a nd e xp e ns e s c a n I e xp e c t?
Ho w h i gh w il l turno v e r a nd p rof it b e ?
10
Observe market developments
H o w ca n I m o v e t h e b u s i n e s s fo r w a rd ? Ho w ca n
I o p t i m i s e m y b u s i n e s s i d e a ? Wh e re i s t h e re a
n e e d fo r m o re i n fo r m a t i o n a n d a d v i ce ?
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
S P E C I A L TO P I C S O N L I N E
55
WEBLINKS
W
01
FOOD SERVICE ENTREPRENEURS:
FACING CHALLENGES HEAD-ON
www.metro-retailcompendium.de/
en-start-up-time-1/
02
FIRST INGREDIENTS FOR ENTREPRENEURS
www.metro-retailcompendium.de/
en-start-up-time-2/
03
SEEKING, FINDING AND
RETAINING QUALIFIED STAFF
www.metro-retailcompendium.de/
en-start-up-time-3/
04
ALWAYS KEEP UP WITH THE TIMES
www.metro-retailcompendium.de/
en-start-up-time-4/
05
OVERCOMING FINANCIAL HURDLES
www.metro-retailcompendium.de/
en-start-up-time-5/
06
IS THERE AN À LA CARTE RECIPE
FOR SUCCESS?
www.metro-retailcompendium.de/
en-start-up-time-6/
S tarti ng up w i th success –
overcomi ng obstacles
01
PLAN AND PREPARE
www.fuer-gruender.de/wissen/existenzgruendungplanen/branchentipps/gaststaettengewerbe
This online portal offers a blog with news from the
start-up scene and industry advice for hoteliers and
food service providers (in German).
www.ihk-berlin.de/branchen/Tourismus/
Hotellerie_und_Gastronomie
The Chamber of Commerce and Industry of Berlin
provides information on starting a business in the hotel
and food service industry (in German).
www.existenzgruender.de/en
The portal of the German Federal Ministry of Economics and Energy pools information, online tools,
tutorials and other practical tips for entrepreneurs.
www.dehogabw.de/beraten/betriebsberatung/
existenzgruendung.html
The German hotel and restaurant association
DEHOGA offers a variety of services for entrepreneurs
(in German).
www.metro-startupstudy.com
This representative survey carried out by
METRO Cash & Carry and the German market research
company GfK examines the motivation and
expectations of self-employed hoteliers and food
service providers and sheds light on the challenges.
02
ATTRACT QUALIFIED STAFF
www.rkw-kompetenzzentrum.de/projekte
RKW, the Rationalisation and Innovation Centre of German Industry, provides recruiting tips (in German).
www.kofa.de
KOFA, a project aimed at securing qualified staff, supports small businesses in recruiting personnel
(in German).
© METRO AG 2015
56
SPECIAL TOPICS / START-UP TIME
www.fachkraeftebuero.de
The German Federal Ministry of Labour and Social
Affairs presents projects on securing qualified staff
(in German).
www.culinaryagents.com
This online job network matches jobs and profession­
als in the restaurant, hotel and catering industry.
03
FOLLOW TRENDS AND
MEET CUSTOMERS’ EXPECTATIONS
www.starting-up.de/geschaeftsideen/
gastronomie-und-tourismus.html
This online portal reports on extraordinary and trendy
business ideas in the hotel and food service industry
(in German).
www.meetup.com/de/Innovation-in-Retail-Meetup
With the Innovation in Retail Meetup, METRO GROUP
promotes exchange among innovative start-ups.
www.fizzz.de
Fizzz offers tips and information on trends and and
hotspots in the food service scene (in German).
www.metro-genussblog.de
The METRO Genussblog posts news and trends
from the food service sector (in German).
04
FIND FUNDING SOLUTIONS
www.foerderdatenbank.de
With this online funding database, the German Federal
Government gives an overview of important funding
programmes (in German).
www.existenzgruender-jungunternehmer.de/p/
finanzen/kredite/crowdfunding.html
Five steps to a crowdfunding campaign – the internet
platform for start-ups shows how it works (in German).
www.kfw.de
The KfW banking group offers tips and information on
funding opportunities for entrepreneurs.
www.mein-mikrokredit.de
With Mikrokreditfonds Deutschland, the German
Federal Government is looking to promote
small businesses (in German).
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / START-UP TIME
57
SOURCES
Bayerisches Staatsministerium für Ernährung, Landwirtschaft und Forsten, Ein Dorf wird Wirt – mit viel
Leidenschaft, Engagement und Fleiß holten sich die
Altenauer ihr Wirtshaus zurück, 2014
Bundesagentur für Arbeit, Chancen erkennen. Vorteile
nutzen, December 2014
METRO GROUP, Pressemitteilung,10/2/2015
METRO GROUP, Pressemitteilung, 27/4/2015
RKW Kompetenzzentrum, Fachkräfte finden & binden –
Vielfalt nutzen, January 2015
www.existenzgruender.de
Bundesinstitut für Berufsbildung, Qualifikationsstruktur
und Erwerbstätigkeit im Gastgewerbe, 2014
Bundesministerium für Wirtschaft und Energie, Gründerland Deutschland. Zahlen und Fakten, June 2013
www.fachkraefte-offensive.de
www.fizzz.de
www.gastro-gruenderpreis.de
BMWi, Fachkräfteengpässe in Unternehmen, January
2014
www.kaffeenade.de
BMWi, Gründerzeiten 01, June 2014
www.kfw.de
DEHOGA, Fachkräftesicherung, 2015
www.mein-mikrokredit.de
Deutscher Industrie- und Handelskammertag,
DIHK-Gründerreport 2014, June 2014
www.teatales.de
Eat Smarter, Food Trucks erobern Deutschland, 2014
Global Entrepreneurship Monitor, Rahmenbedingungen
für Gründer „mittelmäßig“, April 2015
Global Entrepreneurship Monitor, Länderbericht
Deutschland 2013, May 2014
Gründerszene, Eine halbe Million Euro für Wonderpots,
9/9/2013
Handelsblatt, METRO und die Start-ups, 26/3/2015
Huffington Post, Wie mit Crowdfunding Dorfkneipen
gerettet werden, 18/6/2014
Industrie- und Handelskammertag BW, Zahlen, Daten
und Fakten: Hilfe, uns gehen die Auszubildenden aus!,
9/9/2014
Inkubato, Let’s make häppies häppen, 2015
KfW, KfW-Gründungsmonitor 2013, May 2013
KfW, KfW-Gründungsmonitor 2014, May 2014
KfW, Steckbrief Existenzgründer, May 2014
METRO AG, Die METRO Gründerstudie, September 2014
© METRO AG 2015
58
SPECIAL TOPICS / SERVICE
SERVICE
METRO RETAIL COMPENDIUM 2015/2016
59
SPECIAL TOPICS / SERVICE
DIGITAL SERVICES IN STATIONARY
RETAIL OFFER CUSTOMERS TRUE
ADDED VALUE.
THE TOP 10 DIGITAL SERVICES AT THE POINT OF SALE
ACCORDING TO LEVEL OF INTEREST
HOW INTERESTING DO YOU FIND THIS DIGITAL SERVICE?
Answers on a scale of 1 = not at all interesting to 5 = very interesting;
the answers 4 = rather interesting and 5 = very interesting are shown together
ONLINE
AVAILABILITY
CHECK
ORDER GOODS
EVEN IF
NOT IN STOCK
FREE WI-FI
IN STORES
69.9%
69.8%
ACCESS TO
AVAILABILITY AT
OTHER STORES
ORDER ONLINE,
PICK UP IN STORE
60.3%
60.3%
SELF-SCAN
CHECKOUT
SCANNING
CODES FOR
INFORMATION
59.7%
55.3%
CUSTOMER CARD APP
WITH COUPONS
DIGITAL RECEIPTS
52.7%
51.1%
ACCESS TO AN
EXPANDED
PRODUCT RANGE
50.8%
45.6%
© METRO AG 2015
60
SPECIAL TOPICS / SERVICE
SERVICE
IN RETAIL
Ser | vice
[sзr'vis]
01
SPECIAL TOPIC ONLINE
Links on page 80
G
GLOSSARY LINK
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / SERVICE
61
Service can be described as support that someone
voluntarily offers. The term also refers to a
company’s intangible economic output, which can
either represent the company’s core product (in the
case of service industries) or may be offered as an
add-on to the company’s tangible products.
These include such things as pre-sales and
after-sales service for products independent of
the actual purchase of the goods. Services also
cover the area of customer support, such as the
maintenance of purchased goods.
Source: Gabler Wirtschaftslexikon
© METRO AG 2015
62
SPECIAL TOPICS / SERVICE
“WE WERE LEAVING A
PARTY AND HAD OUR
MOBILE PHONES IN
OUR HANDS. AND WE
THOUGHT: ‘NOW IT WOULD
BE GREAT TO CALL THE
CORNER STORE, ORDER
AND SAY WE’RE ON OUR
WAY TO PICK UP OUR
GROCERIES.’”
Benjamin Brüser
founder of the retail company “Emmas Enkel”
Tante-Emma-Laden
G
p. 179
“WE NEED TO MAKE
OUR CUSTOMERS
FEEL LIKE GUESTS
IN OUR STORE.”
Alain Caparros
CEO of Rewe Group
METRO RETAIL COMPENDIUM 2015/2016
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63
“THE ONLY WAY TO
ASSERT OURSELVES
IS TO PROVIDE
BETTER SERVICE.
THE CUSTOMERS
ARE GODS.”
Jeffrey Preston Bezos
founder and CEO of the US company Amazon
“THE BEST IDEAS
COME TO ME WHEN I
IMAGINE THAT I’M MY
OWN CUSTOMER.”
Charles Lazarus
founder of the toy retailer “Toys‘R’Us”
© METRO AG 2015
64
SPECIAL TOPICS / SERVICE
WHY DO
RETAILERS OFFER
SERVICES?
CUSTOMERS NOTICE WHEN
SERVICE IS LACKING.
81%
81 per cent of surveyed Germans have foregone
a planned purchase as a result of poor or lacking
advice from the seller.
02
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / SERVICE
SUCCESSFUL
RETAILERS DO
NOT JUST SELL
GOODS – THEY
ALSO SELL
SOLUTIONS.
65
15%
Only 15 per cent of Germans are of the opinion
that price is more important than service.
PURCHASE AND SERVICE
EXPERIENCES IMPROVE
CUSTOMER SATISFACTION.
15–20%
Retailers that offer their customers
outstanding purchase and service
experiences from initial contact to aftersales service increase customer satisfaction
by 15 to 20 per cent.
E DIALED
R YOU HAV
T HE N U MBE
A BL E
Y NOT AVAIL
IL
R
A
R
O
P
M
IS TE
© METRO AG 2015
66
SPECIAL TOPICS / SERVICE
FACTS AND
FIGURES AT
A GLANCE
Three out of four consumers
could imagine stationary stores
increasingly becoming service
channels for online retail.
03
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / SERVICE
67
Digital technologies and service offerings in stationary stores
are more attractive for customers than retailers might think:
SHARE OF CUSTOMERS
WHO FIND THIS ATTRACTIVE
SHARE OF RETAILERS
WHO CONSIDER THIS IMPORTANT
55%
40%
WI-FI IN THE STORE
53%
33%
MODERN CHECKOUT PROCESSES, INCLUDING BARCODE SCANNER AND THE OPTION TO PAY VIA SMARTPHONE OR PAYPAL
49%
25%
INTERACTIVE DISPLAY WALLS OR INTERACTIVE SHOP WINDOWS
45%
21%
STORES EQUIPPED WITH TABLETS AND TOUCHSCREENS
41%
21%
FREE CHARGING STATIONS FOR SMARTPHONES IN THE STORE
39%
15%
INDOOR NAVIGATION SUPPORTED BY SMARTPHONES OR TABLETS
37%
INTERACTIVE ADVERTISING PANELS WITH PERSONALISED OFFERS
21%
68
SPECIAL TOPICS / SERVICE
Customers are increasingly focusing on services that
combine a company’s various channels – in particular
the possibility of checking online to see if a product is
available. In a recent study conducted by the EHI Retail
Institute, 25 retail companies cited the most important
omnichannel services:
TOP
OMNICHANNEL
SERVICES
CHECK AVAILABILITY
AT THE NEAREST STORE
Store
CHECKING THE
IN-STORE AVAILABILITY
OF PRODUCTS ONLINE
Displaying the current product inventory in one or more specific outlets.
METRO RETAIL COMPENDIUM 2015/2016
currently in stock
SPECIAL TOPICS / SERVICE
69
IN-STORE
RETURN
The possibility to return products that were
purchased online to a stationary outlet.
OPEN
CLICK AND
COLLECT
G
p. 178
The customer orders or reserves the product online,
pays for it online or in store and collects it at a local outlet.
IN-STORE
ORDER
Customers can make use of terminals and tablets in the
store to order a product and have it delivered to their home.
OPEN
© METRO AG 2015
70
SPECIAL TOPICS / SERVICE
SERVICES THAT STATIONARY RETAIL CAN OFFER TO
ONLINE RETAIL – SUCH AS CLICK AND COLLECT OR
THE RETURN OF ONLINE PURCHASES TO A LOCAL
STORE – SERVE AS AN IMPORTANT BRIDGE BETWEEN
THE TWO CHANNELS.
STATIONARY RETAIL
OPEN
CLICK AND
COLLECT
METRO RETAIL COMPENDIUM 2015/2016
IN-STORE
RETURN
SPECIAL TOPICS / SERVICE
71
ONLINE RETAIL
IN-STORE
ORDERING
CHECKING THE
IN-STORE AVAILABILITY
OF PRODUCTS ONLINE
© METRO AG 2015
72
SPECIAL TOPICS / SERVICE
SERVICE OFFERINGS
IN RETAIL
04
1
2
3
4
1
INFORMATION
AND ADVISORY
SERVICES
PERSONALISED ADVICE
70%
Personalised, face-to-face advice continues to be in great demand: 70 per cent of
surveyed customers like to receive advice
in the store before making a purchase.
METRO RETAIL COMPENDIUM 2015/2016
CLICK TO CHAT
Customers want to communicate in real time and have
questions answered during the purchasing process,
even online.
The click-to-chat or click-to-call feature enables online
customers to clarify questions directly with a staff
member. Many customers make use of such services
when they are made aware of them and go on to complete
the purchase. This helps prevent a high rate of abandoned
online transactions.
SPECIAL TOPICS / SERVICE
73
4. After-sales services
3. Delivery and return
2. Purchase and payment
AVAILABILITY AT THE NEAREST STORE
ONLINE AVAILABILITY AND RESERVATION
PERSONAL SHOPPING
Checking online to see if the desired product is avail­
able in a particular store and reserving the product
for in-store pick-up: the click-and-reserve service is
becoming increasingly popular. It has proven successful for companies such as the British online retailer
Argos and Apple. Peek & Cloppenburg introduced the
click-and-reserve service in Germany in 2011.
This service allows customers to book an exclusive
appointment in the store and specify a particular
field of interest online. Advice is then provided by a
customer manager on-site.
© METRO AG 2015
74
SPECIAL TOPICS / SERVICE
SERVICE OFFERINGS
IN RETAIL
1
2
3
4
1. Information and advisory services
2
PURCHASE
AND
PAYMENT
ORDER
ONLINE
IN-STORE ORDERING
Customers can place online orders using
QR codes on the product or screens on the
sales floor.
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / SERVICE
75
PAYMENT VIA SMARTPHONE
€
34%
One out of every three smartphone users could imagine completely doing
without their wallet and only paying with their smartphone. This was the
finding of a representative survey conducted on behalf of the German
Federal Association for Information Technology, Telecommunications and
New Media (BITKOM). With the corresponding technology, the smartphone
can become a mobile wallet, combining various payment and identification
functions.
4. After-sales services
3. Delivery and return
CHEQUE, PLEASE! THE FOUR MOST POPULAR PAYMENT
METHODS FOR ONLINE PURCHASES:
CHOICE OF PREFERRED
PAYMENT METHOD
87%
INVOICE
PAYPAL, GIROPAY
DIRECT
DEBIT
BANK TRANSFER
(PREPAYMENT)
87 per cent of surveyed Germans stated
that the choice of their preferred
payment method is an important
requirement when making an online
purchase.
58%
52%
46%
38%
© METRO AG 2015
76
SPECIAL TOPICS / SERVICE
SERVICE OFFERINGS
IN RETAIL
1
2
3
1. Information and advisory services
2. Purchase and payment
3
COLLECTING ORDERED
PRE-PICKED GOODS
4
DELIVERY AND
RETURN
A number of retail companies offer this service
to their customers in various forms, such as:
“Pick Up Today” service (Walmart)
Customers can order goods online and then
pick them up at a local Walmart store, a
neighbourhood market or a selected FedEx
Office location.
METRO RETAIL COMPENDIUM 2015/2016
“real,– DRIVE”
The website www.real-drive.de lets customers put
together their purchase and then specify their preferred
time to collect the order at a “real,– DRIVE” location.
They receive an order number by e-mail, which they
then use when collecting their purchase.
SPECIAL TOPICS / SERVICE
FLEXIBLE DELIVERY
51%
For 51 per cent of those surveyed,
flexible delivery is important.
Concepts that provide various delivery
options are especially in demand. One
out of every five consumers wants to
be able to choose where and when their
package is delivered – whether to a
neighbour’s house, to a parcel station
or on a specific day.
77
SAME-DAY DELIVERY
Although only a few retailers offer deliveries on the same day as the order is made
(2.8 per cent), more than one third of those surveyed plan to include this option in
the future or are at least open to the idea. These were the findings of a survey of
around 280 online retailers conducted by ECC Köln and time:matters. Example at
Media-Saturn: Media Markt and Saturn already offer express delivery within
30 minutes to three hours in a number of large German cities and intend to introduce
this across the country.
30 min.
4. After-sales services
RETURNS
IMMEDIATE PICK-UP IN STORE
Examples at Media Markt and Saturn: both consumer
electronics retailers offer a special feature in their
web shops to check the immediate availability of a
product for pick-up at a specified store in Germany. As
soon as the customer is informed that the product is
immediately in stock, he or she can order the product
online and then immediately collect it at the specified
store after receiving the pick-up confirmation by e-mail.
The customer can pay either online or at the store.
COLLECTION
RECEIPT
Media
Markt
80%
80 per cent of Germans consider
simple return options an important
requirement when making online
purchases.
DELIVERY DIRECTLY TO THE CUSTOMER’S CAR
In April 2015, DHL, Audi and Amazon launched a pilot
project: making deliveries straight to the trunk of the
customer’s car. An app informs the delivery person of
the car’s exact location and provides him or her access
the trunk of the car. Once the delivery person has deposited the parcel and closed the trunk, the trunk locks
again automatically. The owner of the car then receives
an e-mail that the delivery has been made.
N0. 1457
© METRO AG 2015
78
SPECIAL TOPICS / SERVICE
SERVICE OFFERINGS
IN RETAIL
1
2
3
4
1. Information and advisory services
2. Purchase and payment
3. Delivery and return
4
DELIVERY
AFTER-SALES
SERVICES
SERVICE AT A FIXED PRICE
ON-SITE
HELP
SET-UP
METRO RETAIL COMPENDIUM 2015/2016
Whether the delivery, set-up and installation of TVs and household
appliances (including disposal of the old appliances and packaging),
the initial installation of a computer or on-site computer support –
Media Markt’s Power Service offers customers a number of services
at a fixed price.
SPECIAL TOPICS / SERVICE
79
METRO ACADEMY
CUSTOMER RETENTION THROUGH
SPECIAL EVENTS AND CAMPAIGNS
In order to give customers new incentives and ideas
for their business as well as to inform them about
new topics, the wholesaler METRO Cash & Carry is
offering culinary workshops and seminars in the
METRO ACADEMY.
The outdoor outfitter Globetrotter is taking a similar
approach, offering customers the chance to test product
functionality first-hand during paddling tours, altitude
training or survival camps.
GLOBETROTTER
SURVIVAL CAMP
2
1
3
© METRO AG 2015
80
SPECIAL TOPICS / SERVICE
S P E C I A L TO P I C O N L I N E
SOURCES
BITKOM, Brieftaschen der Zukunft sind digitale
Alleskönner, 16/11/2014
01
SERVICE IN RETAIL
www.metro-retailcompendium.de/en-service-1/
02
WHY DO RETAILERS OFFER SERVICES?
www.metro-retailcompendium.de/en-service-2/
03
FACTS AND FIGURES AT A GLANCE
www.metro-retailcompendium.de/en-service-3/
04
SERVICE OFFERINGS IN RETAIL
www.metro-retailcompendium.de/en-service-4/
BusinessPartner PBS, die Zeitschrift für Handel und
Industrie, 20/4/2015
Deutsche Post, Einkaufen 4.0 – Der Einfluss von
E-Commerce auf Lebensqualität und Einkaufsverhalten, 2012
ECC Köln, Digitalisierung des Point of Sale – Auf den
Kundennutzen kommt es an, 2014
ECC Köln, Online-Handel: Servicewüste oder -oase?
Beratungsansprüche verschiedener Konsumententypen in unterschiedlichen Branchen, 2014
ECC Köln, Same Day Delivery: Einsatz und Mehrwerte
aus Händlersicht, 2014
e-commerce Magazin, Konsumentenerwartungen an
Online-Serviceangebote in Echtzeit?, 2014
EHI Retail Institute, Omnichannel-Commerce 2015,
February 2015
McKinsey, Akzente 3’14
Media-Saturn, Pressemitteilung, 3/12/2014
PwC, Modern Retail – Innovative Handelskonzepte im
Fokus, November 2014
www.bitkom.org
www.innofact.de
www.statista.de
www.yougov.de
METRO RETAIL COMPENDIUM 2015/2016
SPECIAL TOPICS / SERVICE
81
46%
OF GERMANS EXPECT THEIR
DESIRES AND NEEDS TO BE
UNDERSTOOD THROUGH A
FACE-TO-FACE TALK BEFORE
PURCHASING A PRODUCT OR
SIGNING A CONTRACT.
AND CUSTOMERS FIND IT JUST
AS IMPORTANT THAT THE ADVICE
THEY RECEIVE IS SUITED TO
THEIR NEEDS AND SOLUTIONORIENTED.
© METRO AG 2015
82
DATA, FIGURES AND FACTS
www.metro-retailcompendium.de/en/data-figures-facts/
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS
83
DATA,
FIGURES
AND FACTS
 84
GERMANY
120
EUROPE
152
WORLD
© METRO AG 2015
84
DATA, FIGURES AND FACTS / GERMANY
GERMANY
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / GERMANY
85
© METRO AG 2015
86
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
RETAIL AND WHOLESALE IN GENERAL
PURCHASE OF GOODS
LOGISTICS
[TRANSPORT, WAREHOUSING, DISTRIBUTION]
SALE OF GOODS
COMMERCIAL CUSTOMER
[RESELLER, BULK CONSUMER]
PRIVATE CUSTOMER
>> Cash-and-carry wholesale,
Pick-up and order wholesale1
>> Stationary retail
>> General wholesalers
>> Mail-order business including
online retail and teleshopping
Source: METRO GROUP
>> Speciality wholesalers
>> Itinerant retail
The terms retail and wholesale in the functional sense encompass the buying and selling of manufactured
products. This takes place in two segments for three target groups: wholesale for resellers and bulk
consumers, and retail for private customers.
1
Delivery is offered partially in cash-and-carry wholesale
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
87
IMPORTANCE OF THE RETAIL AND WHOLESALE
INDUSTRY AS AN ECONOMIC SECTOR, 2014
GROSS VALUE ADDED IN € BILLION
20.1
Agriculture and forestry, fisheries
678.4
Financing, leasing and
business service providers
125.5
Construction and housing
244.8
Retail and wholesale
9.4%
281.7
Hotels and food service,
transport and
communication
584.6
Source: Federal Statistical Office Germany
Public and private
service providers
676.7
Manufacturing
(excluding construction)
TOTAL: €2,612 BILLION
The retail and wholesale sector makes a major contribution to added value.
© METRO AG 2015
88
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
THE STRUCTURE OF WHOLESALE IN GERMANY, 2012
FIGURES IN PER CENT
6
Agricultural base materials etc.
7
Information and communication
technology equipment
42
Other wholesale
9
Machinery etc.
16
20
Consumer durables and consumable goods
The consumer goods wholesale industry generates close to 40 per cent of all wholesale revenue with food,
drinks and tobacco as well as durables and consumables.
METRO RETAIL COMPENDIUM 2015/2016
Source: Federal Statistical Office Germany
Food, drinks,
tobacco
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
89
DISTRIBUTION CHANNELS OF THE WHOLESALE INDUSTRY
COMMERCIAL AND MANUFACTURING SECTOR AND
UPSTREAM WHOLESALE INDUSTRY
Source: Zentes, Joachim et al.: Innovative Geschäftsmodelle und Geschäftsprozesse im Großhandel
WHOLESALE INDUSTRY
INDUSTRIAL B2B TRADE
Industry,
skilled trades
CONSUMER GOODS WHOLESALE TRADE
Downstream wholesale
industry
Retail industry,
bulk consumers
The wholesale industry is the link between producers and buyers. The industrial B2B trade sector primar­
ily supplies industry and the skilled trades, while the retail industry and bulk consumers such as hotels,
restaurants and commercial kitchens are the main buyers from the consumer goods wholesale trade
sector.
© METRO AG 2015
90
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
THE STRUCTURE OF RETAIL IN GERMANY
RETAIL
FMCG1: FOOD, NEAR-FOOD
GENERAL FOOD RETAIL
SPECIALITY/SINGLE-LINE RETAIL
>> Hypermarkets
>> Drugstores
>> (Weekly) markets
>> Large superstores
>> Beverage stores
>> Sales vehicles
>> Small superstores
>> Pet shops
>> Home delivery
>> Supermarkets
>> Speciality stores2
>> Mail-order sales
>> Self-service stores
>> Bakeries/butchers etc.
>> Discounters
>> Others
Retail offers consumers a wide selection of business formats in all sectors.
1
2
3
NON-STATIONARY RETAIL
Fast Moving Consumer Goods (everyday goods, e.g., food)
Includes speciality stores for fruit, vegetables, seafood and confectionery
Consumer electronics, information technology and telecommunication
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
91
RETAIL
NON-FOOD
ELECTRONICS 3
TEXTILES
DIY
HOUSEHOLD
GOODS
OTHERS
Source: METRO GROUP
FURNITURE
Department stores, “Kaufhaus” type Speciality centres Single-line retail Department stores, “Warenhaus” type Mail-order sales Marginal product assortments from suppliers outside the industry Others
© METRO AG 2015
92
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
FOOD 1 SUPPLY ALTERNATIVES FOR PRIVATE HOUSEHOLDS
TOTAL SUPPLY
INSTITUTIONAL SUPPLY
EXTERNAL SUPPLY
DIRECT SALES
INDUSTRY,
AGRICULTURE
HANDCRAFTS
>> Canteens
>> Manufacturers
>> Bakeries
>> Snack bars
>> Farmers
>> Pastry shops
>> Vintners
>> Butcher’s shops
>> Restaurants
>> Hotels
>> Purchases from
acquaintances
About half of private household food¹ demand is covered by general retail.
1
Food, beverages, detergents and cleaning products
METRO RETAIL COMPENDIUM 2015/2016
INSTITUTIONAL
WHOLESALE
>> C+C wholesale
stores
>> Purchases from
acquaintances
DATA, FIGURES AND FACTS / GERMANY / OVERVIEW OF RETAIL AND WHOLESALE
93
SELF-SUPPLY
INSTITUTIONAL RETAIL
STATIONARY RETAIL
General retail
Speciality retailers
>> Hypermarkets
>> Fruit and vegetable shops
>> Superstores
>> Gourmet food shops
>> Supermarkets
>> Fishmongers
>> Local shops
>> Off-licences
>> Discounters
>> Sweet shops
>> Department stores
>> Beverage stores
MAIL-ORDER BUSINESS
ITINERANT RETAIL
>> Mail-order retail
>> Sales vehicles
>> Online retail
>> Home delivery
>> Farmer’s markets
>> Tobacconists
>> Health food stores
>> Drugstores
Source: Dr. Lademann & Partner
>> Kiosks, vending machines
>> Petrol stations
© METRO AG 2015
94
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
DEVELOPMENT OF THE FINANCIAL SITUATION
OF THE GERMAN POPULATION, 2011–2013
SHARE IN PER CENT
Question: “How would you describe your current financial situation?”
“I can afford whatever I want.”
4
33
“I’m comfortable and can afford quite a
few luxuries.”
34
45
“All in all I’m doing ok.”
45
15
“I’m just barely getting by.”
14
4
“I can’t make ends meet.”
3
36
19
2011
2013
Compared with 2011, the percentage of Germans who say they can afford luxuries has continued
its increase to more than one third. The percentage of Germans with low financial flexibility has
further decreased to less than 17 per cent compared with 2011.
METRO RETAIL COMPENDIUM 2015/2016
38
17
Source: GfK Trendsensor Konsum 2014
3
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
95
BREAKDOWN OF PRIVATE HOUSEHOLD CONSUMPTION
EXPENSES IN GERMANY, 2004–2014
PRIVATE HOUSEHOLD CONSUMPTION IN PER CENT (NOMINAL)
17.5
17.9
18.3
Others (e. g., health care, education, financial services)
24.2
25.0
24.3
Housing, water, energy
17.0
16.8
16.6
Transport and communication
9.8
10.0
9.7
Leisure time, culture and entertainment
5.2
5.5
Accommodation and restaurant services
12.2
11.1
11.8
Textiles, furniture, household appliances and others
14.3
14.0
13.8
Food, beverages, tobacco goods and others
2004
2009
2014
Source: Federal Statistical Office Germany
5.0
The biggest expenses are for housing, water and energy as well as health care, education and financial
services. Together, they account for well over 40 per cent of total consumer spending and do so at the
expense of other consumer areas.
© METRO AG 2015
96
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
DEVELOPMENT OF DEMAND FOR CONSUMER GOODS AND
THE SHARE OF PRIVATE CONSUMPTION, 2004–2014
MARKET VOLUME IN € BILLION
380
380
387
398
404
398
407
418
424
429
437
29.6
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
SHARE OF PRIVATE
CONSUMPTION
IN PER CENT
2014
In recent years, there has been a certain degree of growth in consumer goods in the retail sector.
At the same time, the share of total private consumption accounted for by the consumer goods trade
continues to decline.
METRO RETAIL COMPENDIUM 2015/2016
Sources: FERI, Federal Statistical Office Germany, METRO GROUP
27.2
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
97
DEVELOPMENT OF PRIVATE DEMAND FOR FOOD AND NON-FOOD
CONSUMER GOODS, 2004–2014
CHANGE IN PER CENT (NOMINAL)
Food
Total
Non-food
20.2
13.8
Sources: IFH, METRO GROUP
8.2
In the area of consumer goods demand, food-based revenue has increased more dramatically in the past
ten years than non-food-based revenue, in part due to higher food prices.
© METRO AG 2015
98
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
PRIVATE DEMAND BY CONSUMER GOODS GROUP, 2014
SHARE IN PER CENT
9.9
Textiles, garments, shoes
39.7
9.2
Food and
beverages
DIY, home improvement
8.0
Office supplies, com­puters,
telecommunications
6.6 Furniture
1.1
5.8 Tobacco goods
5.1 Games, sports, leisure time
Home appliances,
glass, porcelain
1.9
Electrical appliances,
lamps, lighting fixtures
3.8 Entertainment electronics,
image and sound carriers
3.9 Individual demand
Sources: IFH, METRO GROUP
4.9 Cleaning, hygiene, cosmetics
With a share of almost 40 per cent of private demand, food and beverages represent the biggest segment
of demand for consumer goods.
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
99
PRIVATE DEMAND BY CONSUMER GOODS GROUP, 2014
SPENDING IN € BILLION
Food and
beverages
DIY, home
improvement
Textiles,
garments,
shoes
173.3
Sources: IFH, METRO GROUP
43.3
Furniture
Office supplies,
computers,
telecommunications
40.2
35.0
28.9
Games, sports,
leisure time
Tobacco
goods
25.5
Individual
demand
Cleaning,
hygiene,
cosmetics
22.1
21.2
Electrical
appliances,
lamps, lighting
fixtures
Entertainment
electronics,
image and
sound
carriers
17.2
16.6
Home
appliances,
glass,
porcelain
8.4
5.0
↑
↓
↑
↑
↑
↑
↑
↑
↑
↑
↑
↓
+23.0
–4.7
+6.2
+24.9
+8.1
+11.1
+2.9
+16.0
+16.3
+4.6
+33.6
–4.7
TOTAL: €436.6 BILLION
CHANGE SINCE 2004,
TOTAL: +13.8%
CHANGE SINCE 2004
IN PER CENT
The individual consumer goods segments show highly uneven developments. Significant declines in
demand in areas such as textiles, garments and home appliances are counterbalanced by growth in
other areas.
© METRO AG 2015
100
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
TRENDS IN PRIVATE DEMAND FOR CONSUMER GOODS,
2011–2014 (FOOD/FMCG¹ AND NON-FOOD)
CHANGE IN PER CENT
FOOD/FMCG1
Food and beverages
Paper towels, sanitary paper
Washing, cleaning agents
3.6
Tobacco goods
0.8
Flowers, plants
–1.7
SHARE OF TOTAL
CONSUMPTION
IN PER CENT
FOOD AND BEVERAGES
Chilled food
Gourmet food
Fats, oils
Dairy
Fish
Ice cream
Fruit, vegetables
Canned goods
Sweets and confectionery
Non-alcoholic beverages
Jams and spreads
Convenience foods
Frozen goods
Cereals
Meat, meat products
Alcoholic beverages
–0.5
–1.3
–1.6
–5.1
1
9.1
5.9
15.1
12.6
10.8
10.5
7.7
7.3
7.0
6.1
5.7
4.5
4.4
4.0
4.0
3.8
3.0
1.5
Bread, bakery goods
Hot beverages
Dry products
Eggs
Fast Moving Consumer Goods
METRO RETAIL COMPENDIUM 2015/2016
[1.7]
[2.6]
[2.0]
[11.9]
[1.1]
[1.1]
[8.3]
[0.7]
[7.0]
[7.8]
[0.7]
[4.1]
[4.4]
[0.4]
[17.0]
[12.6]
[10.8]
[3.4]
[1.7]
[0.7]
DATA, FIGURES AND FACTS / GERMANY / PRIVATE CONSUMPTION
Sources: IFH, METRO GROUP
NON-FOOD
SHARE OF TOTAL
CONSUMPTION
IN PER CENT
Telecommunications (terminals)
Lamps, lighting fixures
Leather goods, umbrellas
PC software
Electrical appliances (excluding built-in types)
Construction materials, building elements, tiles
Furniture
Optical products
Home fabrics, bed linens
Personal hygiene, cosmetics, perfumes
Sports and camping PC hardware Office machines
Electrical installations
Toys
Hardware, metal fittings, tools Image and sound carriers
Men’s underwear, shirts, woollens
–0.7
–0.8
–1.3
–1.5
–1.8
–2.0
–2.1
–2.3
–3.1
–3.3
–3.5
–4.1
–4.3
–4.3
–4.6
–4.8
–4.8
–5.8
–6.3
–7.7
–8.5
–9.5
–10.9
101
50.2
18.0
17.8
17.6
12.9
5.8
5.6
4.5
4.4
3.4
2.5
2.3
2.0
1.8
1.1
1.0
1.0
0.2
Bathroom ceramics, installations, accessories
Heating, air conditioning units
Carpets, flooring
Paints, varnishes, wallpaper, glue
Office furniture and equipment
Wood, building elements made from wood
Everything for children
Socks, gloves, accessories
Gardening tools, equipment and furniture
Curtains, decoration, textile fabrics, haberdashery
Household goods
Menswear
Watches, jewellery (genuine)
Ladies’ underwear, other ladieswear
Glass, porcelain, gifts
Shoes (excluding sport shoes)
Books, magazines
Stationery
Furs, leatherwear
Radio, TV, audio
Ladieswear
Photography
Car accessories (including radios), car chemicals
[7.8]
[2.6]
[1.9]
[9.0]
[6.9]
[4.9]
[18.6]
[3.2]
[1.3]
[10.5]
[6.6]
[8.9]
[1.5]
[2.8]
[4.4]
[2.8]
[2.8]
[3.5]
[3.8]
[1.3]
[3.2]
[3.0]
[2.2]
[5.6]
[3.5]
[3.2]
[3.9]
[2.5]
[2.3]
[4.2]
[4.6]
[2.1]
[2.6]
[6.6]
[8.8]
[6.4]
[0.6]
[9.0]
[14.4]
[4.2]
[2.2]
© METRO AG 2015
102
DATA, FIGURES AND FACTS / GERMANY / PRICE DEVELOPMENT
DEVELOPMENT OF CONSUMER AND RETAIL PRICES,
2009–2014
YEAR-ON-YEAR PRICE CHANGE IN PER CENT
2.5
2.0
2.1
2.1
2.0
1.5
1.5
1.6
1.4
1.0
1.1
0.9
0.8
0.5
IN DETAIL
0.6
0.3
0
–0.2
2009
2010
2011
2012
2013
2014
CONSUMER PRICES
RETAIL PRICES
In recent years – with the exception of 2012 – the increase in retail prices has always been below the rise
in overall consumer prices.
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / GERMANY / PRICE DEVELOPMENT
103
DEVELOPMENT OF CONSUMER PRICES, 2014
Alcohol,
tobacco
Hotels,
restaurants
Health care
Leisure
Clothing,
footwear
Food
Rent,
utilities
Household
goods
3.1
Transport
2.1
Post,
telecom
2.0
1.3
1.1
1.0
Education
0.8
YEAR-ON-YEAR PRICE
CHANGE IN PER CENT
0.4
–0.2
–1.2
Source: Federal Statistical Office Germany
–2.1
3.8
1
4.5
4.4
11.5
4.5
10.3
31.7
5.0
13.5
3.0
0.9
BASKET WEIGHTS
IN PER CENT 1
Total <100 per cent because the “other goods and services” item is omitted
© METRO AG 2015
104
DATA, FIGURES AND FACTS / GERMANY / ORGANISATIONAL FORMS
DEVELOPMENT IN THE NUMBER OF FOOD RETAIL
OUTLETS BY RETAIL FORMAT, 2009–2014
SHARE OF ALL OUTLETS IN FOOD RETAIL IN PER CENT 1
5.3
Hypermarkets/large superstores (> 2,500 m2)
6.1
12.4
Small superstores (1,000–2,499 m2)
15.4
Large supermarkets (400–999 m2)
14.2
23.0
15.3
Small supermarkets (100–399 m2)
49.0
Discounters
44.7
2009
CHANGE IN NUMBER OF
OUTLETS IN 2009 COMPARED
TO 2014 IN PER CENT
2014
Hypermarkets/large superstores (> 2,500 m2)
8.8
Small superstores (1,000–2,499 m2)
18.0
Large supermarkets (400–999 m2)
–7.8
Small supermarkets (100–399 m2)
–36.8
Discounters
–5.5
3.8
Food retail formats in total
The number of food retail outlets in Germany has declined by more than five per cent from 2009 to 2014.
In particular, the number of supermarkets has sharply declined. At the same time, the number of
hypermarkets, superstores and discounters has increased.
1
On 1 January of each year
METRO RETAIL COMPENDIUM 2015/2016
Source: The Nielsen Company
14.6
DATA, FIGURES AND FACTS / GERMANY / ORGANISATIONAL FORMS
105
MARKET SHARE AND SALES TRENDS FOR FOOD
RETAIL FORMATS, 2008–2013
FOOD RETAIL FORMAT SHARE OF FMCG 1 SALES IN PER CENT
27.6
Hypermarkets/large superstores (> 2,500 m2)
27.8
15.0
Small superstores (1,000–2,499 m2)
17.1
11.1
Large supermarkets (400–999 m2)
10.5
Small supermarkets (100–399 m2)
2.6
4.4
Discounters
41.9
2008
2013
Hypermarkets/large superstores (> 2,500 m2)
9.6
Small superstores (1,000–2,499 m2)
25.3
Large supermarkets (400–999 m2)
3.0
Small supermarkets (100–399 m2)
–35.4
Discounters
9.2
Source: The Nielsen Company
42.0
Food retail formats in total
DEVELOPMENT OF FMCG SALES
IN 2013 COMPARED TO 2008 IN
PER CENT
9.1
While discounters and large-format retailers and wholesalers have been able to maintain or expand
their market share, the market share of small supermarkets has fallen by more than 40 per cent in
six years.
1
Fast Moving Consumer Goods
© METRO AG 2015
106
DATA, FIGURES AND FACTS / GERMANY / ORGANISATIONAL FORMS
SALES AND COMPANIES IN RETAIL AND WHOLESALE
498
1,829
SALES IN € BILLION
124
COMPANIES IN THOUSAND
WHOLESALE AND FOREIGN TRADE
RETAIL
Wholesale and foreign trade is the retail heavyweight: 30 per cent of businesses are active in this area and
account for just under 80 per cent of all general retail revenue.
METRO RETAIL COMPENDIUM 2015/2016
Sources: Federal Statistical Office Germany, BGA
325
DATA, FIGURES AND FACTS / GERMANY / ORGANISATIONAL FORMS
107
WHOLESALE: SALES DEVELOPMENT
IN € BILLION
1,126
1,134
1,144
1,133
1,133
1,134
2011
2012
2013
2014
2015
1,047
1,041
943
2007
2008
2009
2010
Sources: Federal Statistical Office Germany, BGA
FORECAST
Since 2011, sales in wholesale have essentially stagnated. The sector is also not expecting any change to
this for 2015.
© METRO AG 2015
108
DATA, FIGURES AND FACTS / GERMANY / ORGANISATIONAL FORMS
DEVELOPMENT IN ONLINE RETAIL SALES
IN GERMANY 1
IN € BILLION
43.6
39.0
+17%
33.3
27.6
21.7
18.3
15.5
13.4
2006
10.9
2007
2008
2009
2010
2011
2012
2013
2014
2015
FORECAST
There is a continued strong annual growth in the online sale of material goods in Germany. Revenue in this
area totalled approximately €39 billion in 2014, a year-on-year increase of 17 per cent.
1
Only transactions involving material goods; not services, licenses or information
METRO RETAIL COMPENDIUM 2015/2016
Sources: BVH/BEVH, HDE, METRO GROUP
10.0
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
109
THE 10 LARGEST FOOD RETAILERS IN GERMANY
BY TOTAL SALES, 2013
TOTAL SALES WORLDWIDE AND SALES IN GERMANY IN € BILLION 1
Schwarz Group²
METRO GROUP
Aldi²
Rewe Group
Edeka Group
Lekkerland
Tengelmann
Group²
dm
74.0
65.7
Globus²
56.3
Rossmann²
50.6
Sources: Company information, EHI, Planet Retail, Trade Dimensions, METRO GROUP
46.2
11.5
31.0
42
25.6
25.2
40
45
36.2
72
46.2
100
7.2
62
7.8
7.1
6.9
5.7
5.4
5.5
4.8
4.3
69
77
70
75
TOTAL V OLUME OF TOP 10
IN GERMANY:
€191.3 BILLION
W ORLD WIDE: €331.8 BILLION
SHARE OF SALES GENERATED IN
GERMANY A S PERCENTA GE OF
TOTAL COMPANY SALES
TOTAL SALES WORLDWIDE
SALES IN GERMANY
The ten leading German food retailers earned more than €330 billion in 2013 with their food and non-food
sales brands, of which about €191 billion was generated in Germany.
1
Net sales
Estimate
2
© METRO AG 2015
110
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
THE 10 LARGEST HYPERMARKET AND SUPERSTORE
OPERATORS IN GERMANY, 2014
GROSS SALES IN € MILLION
Kaufland
(Schwarz Group)1
Real
(METRO GROUP)2
E-Center,
Marktkauf, Ratio
(Edeka Group)1, 3
Globus
14,000
Akzenta,
Rewe Center, Toom
(Rewe Group)1
Citti, Famila
(BartelsLangness)1
9,062
Hit
(Dohle Group)
Combi,
Famila
(Bünting)
V-Markt
(Kaes)
3,310
1,600
36.7
23.7
15.0
8.7
4.2
1,542
4.0
1,239
3.2
900
2.4
494
1.3
Rewe XL
(Petz)
304
0.8
TOTAL VOLUME OF
TOP 10:
€38,193 MILLION
SHARE OF TOTAL
VOLUME OF TOP 10
IN PER CENT
The ten top-selling hypermarket and superstore operators in Germany generated a sales volume of about
€38 billion. The top three share 75 per cent of this.
1
Estimate Net sales including value added tax composite rate 2 METRO RETAIL COMPENDIUM 2015/2016
Excluding Ratio cash & carry
3 Sources: Trade Dimensions, METRO GROUP
5,742
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
111
THE LARGEST DISCOUNTERS IN GERMANY, 2014
GROSS SALES IN € MILLION
Aldi Nord,
Aldi Süd (Aldi)1
Lidl
(Schwarz Group)1
28,420
Netto
(Edeka Group)1
Penny
(Rewe Group)
19,400
Norma
13,217
Netto
(Netto Nord)
7,550
3,145
1,200
26.6
18.1
10.4
4.3
1.6
SHARE OF TOTAL
VOLUME OF TOP 6
IN PER CENT
Source: Trade Dimensions
39.0
TOTAL VOLUME OF
TOP 6:
€72,932 MILLION
The six top-selling discounters in Germany generated a sales volume of about €73 billion. Two thirds of
this are shared by the two leaders, Aldi and Lidl.
1
Estimate
© METRO AG 2015
112
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
DRUGSTORES IN GERMANY, 2014
GROSS SALES IN € MILLION
dm
Rossmann
6,400
Müller
5,700
2,844
42.8
38.1
19.0
SHARE OF TOTAL
VOLUME OF TOP 3
IN PER CENT
The three top-selling drugstores in Germany generated a sales volume of about €15 billion.
METRO RETAIL COMPENDIUM 2015/2016
Source: Trade Dimensions
TOTAL VOLUME OF
THE TOP 3:
€14,944 MILLION
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
113
THE 10 LARGEST CONSUMER ELECTRONICS STORES
IN GERMANY, 20141
NET SALES IN € MILLION
Media-Saturn
(METRO GROUP)
Amazon.de (incl.
Marketplace)2
Expert3
E-Square
(Electronic
Partner, Telering)2
9,780
Euronics2
Sources: corporate publications, Planet Retail, articles from trade magazines, estimate of METRO GROUP
Conrad (Conrad,
Getgoods.de)2
Synaxon2
Otto2
4,300
3,900
Notebooksbilliger.de4
3,800
2,800
Cyberport2
1,000
34.6
15.2
13.8
13.4
9.9
3.5
950
3.4
600
2.1
600
2.1
550
1.9
TOTAL VOLUME OF
TOP 10:
€28,280 MILLION
SHARE OF TOTAL
VOLUME OF TOP 10
IN PER CENT
The ten top-selling consumer electronics businesses or purchasing cooperations in Germany generated a
sales volume of about €28 billion.
Only consumer electronics stores, electronics speciality stores and online retailers with predominantly consumer electronics products are considered
Estimate
Financial year 2013/2014 closed March 2014
4
Including B2B
1
2
3
© METRO AG 2015
114
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
THE 10 LARGEST CASH-AND-CARRY WHOLESALERS
IN GERMANY, 2014
GROSS SALES IN € MILLION
METRO Cash & Carry,
C+C Schaper
(METRO GROUP)1
E-C+C
Großmarkt, Ratio
(Edeka Group)3
Selgros
(Transgourmet
Germany)2
SB-Zentralmarkt
(Brülle & Schmeltzer)
Handelshof
5,538
L. Stroetmann
Großmarkt
Hamberger
Großmarkt2
Wasgau C+C
Mattfeld
Mega
1,402
552
211
56.4
17.4
14.3
5.6
2.1
95
1.0
93
0.9
91
0.9
70
0.7
66
0.7
TOTAL VOLUME OF
TOP 10:
€9,828 MILLION
SHARE OF TOTAL
VOLUME OF TOP 10
IN PER CENT
The ten top-selling cash-and-carry wholesalers in Germany generated a sales volume of just under
€10 billion. METRO GROUP is the market leader with its METRO Cash & Carry sales line. Following
in second and third place are Transgourmet Germany with Selgros and Edeka Group with
E C+C Großmarkt and Ratio.
¹ Net sales including value added tax composite rate ² Estimate ³ Excluding Ratio hypermarkets
METRO RETAIL COMPENDIUM 2015/2016
Sources: Trade Dimensions, METRO GROUP
1,710
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
115
WHO BELONGS TO WHO?
FOOD RETAIL IN GERMANY
TOTAL SALES 1 IN GERMANY AND MOST IMPORTANT SALES BRANDS
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
1. EDEKA GROUP (€46.2 BILLION)
SALES BRAND
STORE FORMAT
E-aktiv-Markt
Neighbourhood store/supermarket
Netto, Netto City, NP, Diska, Treff 3000
Discounter
E-Neukauf, E-Reichelt, Edeka, Kupsch
Supermarket
Nah & gut
Neighbourhood store
Marktkauf, E-Center
Hypermarket/superstore
Ratio
Hypermarket
Aktiv Discount
Superstore
E-C+C Großmarkt
Cash-and-carry store
K&U, Wünsche, Büsch, Thürmann, Schäfer’s
Bakery
Edeka GV-Service
Food service
Trinkgut, Profi, Top-Getränke, Netto
Beverage store
Marktkauf, Herkules
Home improvement centre
CSK
Delivery wholesale store
Technik-Partner
Consumer electronics store
Sport Treff
Sports/leisure store
Edeka24.de
Online food store
¹Net sales refer to financial year 2013
© METRO AG 2015
116
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL IN GERMANY
TOTAL SALES 1 IN GERMANY AND MOST IMPORTANT SALES BRANDS
2. REWE GROUP (€36.2 BILLION)
SALES BRAND
STORE FORMAT
Rewe, Kaufpark, Standa
Supermarket
Penny
Discounter
ITS, ADAC Reisen, Travelix, Meier’s,
Weltreisen, Dertour, Jahn Reisen
Tour operator
Toom Baumarkt, B1
Home improvement centre
DER, DERPART, FCm
Travel agency
Toom
Hypermarket/superstore
Rewe Center, Akzenta
Superstore
Nahkauf, Rewe City
Neighbourhood store/supermarket
Perfetto
Food department
Toom Getränkemarkt, Kölner Weinkeller
Beverage store
Kressner
Clothes shop
Rewe online
Online food store
Klee, B1 Gartendiscounter
Garden centre
Temma
Organic foods supermarket
Rewe to Go
Convenience store
1
Net sales refer to financial year 2013
Estimate
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson's Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
2
3
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
117
3. SCHWARZ GROUP² (€31.0 BILLION)
SALES BRAND
STORE FORMAT
Lidl
Discounter
Kaufland
Hypermarket/superstore
Lidl-shop.de
Online non-food store
Mega Cent
Discount superstore
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
4. METRO GROUP (€25.6 BILLION)
SALES BRAND 3
STORE FORMAT
METRO Cash & Carry, C+C Schaper
Cash-and-carry store
Media Markt, Saturn
Consumer electronics store
real,-
Hypermarket
Galeria Kaufhof
Department store
Mediamarkt.de, saturn.de, redcoon
Online consumer electronics store
Real.de
Online food store
real,- DRIVE
Online food store
Galeria-kaufhof.de
Online non-food store
Dinea
Restaurant
Sportarena
Sports/leisure store
© METRO AG 2015
118
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL IN GERMANY
TOTAL SALES 1 IN GERMANY AND MOST IMPORTANT SALES BRANDS
5. ALDI² (€25.2 BILLION)
SALES BRAND
STORE FORMAT
Aldi Nord, Aldi Süd
Discounter
6. LEKKERLAND (€7.2 BILLION)
SALES BRAND
STORE FORMAT
Lekkerland
Other food wholesale store
7. TENGELMANN GROUP (€5.4 BILLION)
SALES BRAND
STORE FORMAT
Obi
Home improvement centre
Kaiser’s Tengelmann
Supermarket
Kik
Textile store
Tedi
Discount superstore
Kik24.de
Clothing & footwear e-commerce
Plus.de
Online non-food store
Obi.de
Online home improvement shop
Bringmeister.de
Online food store
Babymarkt.de
Online speciality store
1
Net sales refer to financial year 2013
Estimate
2
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / GERMANY / THE LEADING RETAIL COMPANIES
119
8. DM (€5.5 BILLION)
SALES BRAND
STORE FORMAT
dm
Drugstore
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
9. GLOBUS² (€4.8 BILLION)
SALES BRAND
STORE FORMAT
Globus
Hypermarket
Globus Baumarkt, Hela
Home improvement centre
Alpha Tecc
Consumer electronics store
Globus Drive
Online food store
10. ROSSMANN² (€4.3 BILLION)
SALES BRAND
STORE FORMAT
Rossmann, Rossmann Express
Drugstore
Rossmann.de
Online non-food store
© METRO AG 2015
120
DATA, FIGURES AND FACTS / EUROPE
EUROPE
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE
121
© METRO AG 2015
122
DATA, FIGURES AND FACTS / EUROPE / CONSUMER GOODS TRADE
CONSUMER GOODS TRADE IN WESTERN EUROPE, 2014
A – AUSTRIA
I – ITALY
8.5 m S1.0%
€54.7 bn
1.6%
60.0 m S7.4%
€361.4 bn 10.3%
B – BELGIUM
IRL – IRELAND
11.2 m S1.4%
€61.5 bn 1.8%
4.8 m S0.6%
€28.6 bn 0.8%
CH – SWITZERLAND
IS – ICELAND
8.1 m S1.0%
€81.2 bn 2.3%
0.3 m S0.0%
€2.0 bn 0.1%
D – GERMANY
L – LUXEMBOURG
80.9 m S9.9%
€432.1 bn 12.3%
0.5 m S0.1%
€6.6 bn
0.2%
DK – DENMARK
M – MALTA
5.6 m S0.7%
€45.9 bn 1.3%
0.4 m S0.1%
€1.7 bn 0.0%
E – SPAIN
N – NORWAY
46.5 m S5.7%
€191.7 bn 5.5%
5.2 m S0.6%
€57.8 bn 1.6%
F – FRANCE
NL – NETHERLANDS
64.0 m S7.8%
€377.8 bn 10.8%
16.9 m S2.1%
€85.5 bn
2.4%
FIN – FINLAND
P – PORTUGAL
5.5 m S0.7%
€38.5 bn 1.1%
10.5 m S1.3%
€41.8 bn
1.2%
GB – GREAT BRITAIN
S – SWEDEN
64.5 m S7.9%
€411.6 bn 11.7%
9.7 m S1.2%
€65.8 bn
1.9%
IS
IRL
GB
E
Population in Europe
IN TOTAL Consumer goods trade
813 m S
(100%) €3,513 bn (100%) THEREOF IN WESTERN EUROPE 403 m S
(49.5%) €2,346 bn (66.8%) P
See page 171 for a key to the country abbreviations
Approximately 50 per cent of the European population lives in Western Europe. However, its share of
European consumer goods trade amounts to nearly two-thirds of the overall European consumer goods
trade.
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / CONSUMER GOODS TRADE
123
FIN
N
S
DK
NL
D
B
L
A
CH
F
Source: Planet Retail
I
M
COUNTRY
in m S
in %
Share of European population
in € bn
in %
Share of consumer goods trade
© METRO AG 2015
124
DATA, FIGURES AND FACTS / EUROPE / CONSUMER GOODS TRADE
CONSUMER GOODS TRADE IN EASTERN EUROPE, 2014
AL – ALBANIA
H – HUNGARY
RO – ROMANIA
2.8 m S0.7%
€4.5 bn 0.4%
9.9 m S2.4%
€34.7 bn 3.0%
21.2 m S5.2%
€38.2 bn 3.3%
BG – BULGARIA
HR – CROATIA
RUS – RUSSIA
7.2 m S1.7%
€15.4 bn 1.3%
4.2 m S1.0%
€10.2 bn 0.9%
142.3 m S34.6%
€482.4 bn 41.4%
BIH – BOSNIA AND
HERZEGOVINA
LT – LITHUANIA
SK – SLOVAKIA
3.0 m S0.7%
€8.2 bn 0.7%
5.4 m S1.3%
€17.4 bn
1.5%
LV – LATVIA
SLO – SLOVENIA
2.0 m S0.5%
€8.0 bn 0.7%
2.1 m S0.5%
€9.5 bn 0.8%
MD – MOLDOVA
SRB – SERBIA
3.6 m S0.9%
€3.8 bn 0.3%
7.2 m S1.7%
€13.7 bn 1.2%
MK – MACEDONIA
TR – TURKEY
2.1 m S0.5%
€3.6 bn 0.3%
77.3 m S18.8%
€212.8 bn 18.2%
MNE – MONTENEGRO
UA – UKRAINE
0.6 m S0.2%
€0.7 bn 0.1%
45.3 m S11.0%
€52.4 bn 4.5%
3.9 m S0.9%
€6.9 bn 0.6%
BY – BELARUS
9.4 m S2.3%
€21.2 bn 1.8%
CY – CYPRUS
0.9 m S0.2%
€4.7 bn 0.4%
CZ – CZECH REPUBLIC
10.5 m S2.6%
€33.8 bn 2.9%
EST – ESTONIA
1.3 m S0.3%
€3.5 bn 0.3%
PL – POLAND
GR – GREECE
11.0 m S2.7%
€53.6 bn 4.6%
38.5 m S9.4%
€127.4 bn 10.9%
Population in Europe
IN TOTAL Consumer goods trade
815 m S
(100%) €3,513 bn (100%) THEREOF IN EASTERN EUROPE 412 m S
(50.5%) €1,167 bn (33.2%) See page 171 for a key to the country abbreviations
The Eastern European share of the European consumer goods trade is around a third. Generating more
than 40 per cent of total consumer goods demand, Russia is by far the largest retail market.
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / CONSUMER GOODS TRADE
125
EST
LV
RUS
LT
BY
PL
CZ
UA
SK
MD
H
SLO
RO
HR
BIH
MNE
AL
SRB
BG
MK
Source: Planet Retail
GR
TR
CY
COUNTRY
in m S
in %
Share of European population
in € bn
in %
Share of consumer goods trade
© METRO AG 2015
126
DATA, FIGURES AND FACTS / EUROPE / GROSS DOMESTIC PRODUCT AND CONSUMER SPENDING
GROSS DOMESTIC PRODUCT EU-15 COUNTRIES
VS NEW EU-13 COUNTRIES, 2004–2014
GROWTH RATES IN PER CENT (REAL)
NEW EU-13 COUNTRIES
EU-15 COUNTRIES
6.4
6
6.4
5.4
4.7
4
3.3
2
2.2
3.0
3.5
2.1
2.1
2.0
3.1
2.7
1.6
0.7
0
0.0
–0.5
1.2
1.0
0.0
–2
–3.3
–4
–4.5
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: FERI
2004
In recent years, the gross domestic product in the new EU-13 member states has exceeded the
development of the core EU-15 countries.
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / GROSS DOMESTIC PRODUCT AND CONSUMER SPENDING
127
GROSS VALUE ADDED 2014 BY ECONOMIC SECTOR
EMU COUNTRIES VS EU COUNTRIES
GROSS VALUE ADDED IN PER CENT OF THE GDP
25.9
Company-related and
financial services
25.5
23.3
Retail and wholesale, hotels and restaurants,
transport and communication
23.7
19.4
5.1
1.6
24.7
Construction and housing
Agriculture and forestry, fisheries
Other services
19.0
5.4
1.6
24.8
EU total
Source: Eurostat
EMU
Industry (excluding construction)
The allocation of gross value added in 2014 was somewhat different in the eurozone countries than the
EU countries as a whole. The share of company-related and financial services as well as of industry was
higher. The areas of retail and construction are in contrast somewhat smaller.
© METRO AG 2015
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DATA, FIGURES AND FACTS / EUROPE / GROSS DOMESTIC PRODUCT AND CONSUMER SPENDING
BREAKDOWN OF CONSUMER SPENDING IN PRIVATE
HOUSEHOLDS IN EUROPE, 2013
IN PER CENT (NOMINAL)
23.5
20.6
15.4
15.5
Transport and
communication
Other¹
9.7
7.9
7.5
European
average
Food and
beverages,
tobacco etc.
Accommodation and
restaurant service
Textiles, furniture,
household
appliances etc.
Leisure time,
entertainment,
culture
Housing,
water,
energy
The spread of consumer expenses highlights substantial differences between the countries being com­pared:
While spending on basic and luxury foods represent the highest percentage of consumer spending in
Eastern Europe, Western European households spend the most on accommodation, water and energy.
In Great Britain, for example, spending on basic and luxury foods accounted for just 13.1 per cent of total
expenses, compared with 33.1 per cent in Romania.
1
2
E.g. health care, education, personal hygiene, financial services
The figures for Romania and Spain are based on the most recent data available, from 2012
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / GROSS DOMESTIC PRODUCT AND CONSUMER SPENDING
26.7
16.9
9.5
6.5
24.7
16.6
15.6
129
13.7
18.3
16.6
11.7
8.2
9.7
5.3
France
Germany
26.5
24.7
20.6
13.1
16.1
10.4
9.6
16.8
15.9
10.2
6.9
Great Britain
7.0
14.8
7.4
Hungary
25.7
24.7
21.2
18.6
12.5
14.3
9.5
18.9
14.5
13.7
9.0
6.7
7.6
3.1
Italy
Poland
33.1
23.6
Source: Eurostat
21.7
16.8
15.9
11.6
8.7
3.3
Romania2
15.3
8.8
5.7
13.7
14.5
7.3
Spain2
© METRO AG 2015
130
DATA, FIGURES AND FACTS / EUROPE / GROSS DOMESTIC PRODUCT AND CONSUMER SPENDING
VALUE ADDED TAX RATES IN EUROPE, 2015¹
IN PER CENT
WESTERN EUROPE
Denmark
25
25
Sweden
6
12
24
Finland
10
23
Ireland
4.8
9
6
13
22
Italy
4
10
21
Belgium
6
12
21
Netherlands
6
21
Spain
4
10
20
Great Britain
5
20
Austria
10
20
2.1
5.5
10
19
Germany
7
18
Malta
Luxembourg
13.5
23
Portugal
France
14
5
7
17
3
8
14
STANDARD RATE
REDUCED RATE²
1
2
Status: January 2015
The reduced rates are applied in particular with regard to food, books and magazines, medical products and other essential goods
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / GROSS DOMESTIC PRODUCT AND CONSUMER SPENDING
131
EASTERN EUROPE
Hungary
Croatia
Romania
27
5
25
5
13
24
5
9
23
Greece
Poland
18
6.5
13
23
5
8
22
Slovenia
9.5
21
Czech Republic
10
15
21
Latvia
Lithuania
12
21
5
9
20
Bulgaria
9
20
Estonia
9
20
Slovakia
19
5
9
Source: European Commission
Cyprus
10
The standard rate ranges from 27 per cent in Hungary to 17 per cent in Luxembourg. With the exception of
Denmark, all countries also apply reduced value added tax rates.
© METRO AG 2015
132
DATA, FIGURES AND FACTS / EUROPE / RETAIL
DEVELOPMENT OF RETAIL SALES IN
WESTERN AND EASTERN EUROPE, 2011–2014
AVERAGE ANNUAL GROWTH (CAGR, COMPOUND ANNUAL GROWTH RATE) IN PER CENT (NOMINAL)
Great Britain 3.5
Sweden 2.7
Germany 1.8
Austria 1.6
Belgium Switzerland France –0.3
–1.0
0.6
0.2
Italy
Netherlands Spain –1.9
WESTERN EUROPE
1.1
Portugal
–3.8
EASTERN EUROPE
Turkey
12.4
Russia 10.6
Ukraine 8.7
Romania
6.8
Bulgaria 5.6
Hungary 4.2
Poland 3.2
Slovakia –0.6
Croatia
Greece
Source: FERI
–5.9
2.3
There have been very different changes in average retail revenues in Western and Eastern Europe in
recent years. There were negative average developments in particular in Greece, Portugal and Spain,
whereas Russia and Turkey recorded high growth rates in double digits. The growth is, however, partly due
to above-average price increases.
METRO RETAIL COMPENDIUM 2015/2016
133
DATA, FIGURES AND FACTS / EUROPE / RETAIL
NUMBER OF OUTLETS IN
MODERN GENERAL FOOD RETAIL (> 400 M 2 ), 2014
PER MILLION CITIZENS IN EUROPE
13
18
> 2,500 m²
10
1,000–2,500 m²
86
68
36
400–1,000 m²
24
16
3
61
7
60
30
97
75
15
28
10
43
21
32
17
8
76
77
113
60
47
30
5
57
10
51
9
17
25
46
26
57
4
30
Source: The Nielsen Company
12
369 367 396 257 226 174 157 131 177
78
N DK A
D SLO NL B
S
I
FIN E CH F IRL PL CZ GR P
116 119 117 118
165 121
97
83
60
91
50
39
H SK GB TR
468453442 342302274239 237235 219203200196192 173161153137 122116 106 55
See page 171 for a key to the country abbreviations
The number and size of outlets in the food retail sector show considerable differences in the comparison
between countries.
© METRO AG 2015
134
DATA, FIGURES AND FACTS / EUROPE / RETAIL
CONSUMER PRICES AND RETAIL PRICES IN EUROPE,
2011–2014
AVERAGE PRICE INCREASE IN PER CENT
CONSUMER PRICES
RETAIL PRICES
Hungary
Poland
Great Britain
2.8
2.7
Italy
Spain
France
Germany
2.8
2.1
1.7
1.8
1.8
1.6
1.3
1.3
1.4
1.1
0.3
Source: FERI
–0.3
In the European countries examined – with the exception of Spain – retail prices have increased at a
slower rate than consumer prices in general in recent years.
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / RETAIL
135
SHARE OF SALES ACCOUNTED FOR BY PRIVATE LABELS
IN THE EUROPEAN FOOD RETAIL SECTOR¹, 2014
TURNOVER IN PER CENT
VARIATION 2013–2014
IN PERCENTAGE POINTS
44.5
Switzerland
[–0.7]
Spain
42.0
[+1.1]
Great Britain 41.4
[+0.5]
34.5
Germany
32.9
Portugal
31.3
Belgium
28.5
Austria
[+0.5]
[+0.1]
[+1.6]
[+0.0]
France
27.4
[–0.4]
Netherlands
27.2
[+0.4]
Denmark
25.4
[+0.4]
Sweden
25.2
[+0.2]
Hungary
25.2
[+0.8]
Poland
24.3
[+0.8]
Finland
23.6
[+1.7]
Slovakia
22.7
[+0.5]
Norway 22.7
[+1.9]
22.4
[+0.4]
Czech Republic 17.6
[+0.2]
Source: The Nielsen Company
Italy
The share of revenue accounted for by private labels in the area of fast moving consumer goods (FMCG) in
the food retail sector slightly increased once again in many European countries in 2014. There are, howe­
ver, big differences between individual countries: from 17.6 per cent in Italy to 44.5 per cent in S
­ witzerland.
1
Fast Moving Consumer Goods (FMCG) excluding fresh produce
© METRO AG 2015
136
DATA, FIGURES AND FACTS / EUROPE / RETAIL
FOOD RETAIL SPACE DENSITY IN
WESTERN AND EASTERN EUROPE
IS
N
DK
IRL
GB
NL
D
B
IN M2 PER 1,000 CITIZENS
L
401–600 (7 COUNTRIES)
F
CH
301–400 (8 COUNTRIES)
I
101–300 (14 COUNTRIES)
1–100 (11 COUNTRIES)
See page 171 for a key to the country abbreviations
E
The food retail space density per inhabitant
is highest in Northern and Central Europe.
A slight decrease can be seen in more
southerly areas of Europe, while food retail
space density falls increasingly sharply
towards Eastern Europe.
METRO RETAIL COMPENDIUM 2015/2016
Sources: Planet Retail, UN
P
DATA, FIGURES AND FACTS / EUROPE / RETAIL
137
FIN
S
EST
LV
RUS
LT
BY
PL
CZ
UA
SK
A
MD
H
SLO
RO
HR
BIH
MNE
AL
SRB
BG
MK
GR
TR
M
CY
© METRO AG 2015
138
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
CONCENTRATION OF COMPANIES IN EUROPEAN
FOOD RETAIL, 2013
FOOD SALES MARKET SHARE OF THE TOP 5 IN PER CENT
Norway
75.8
Finland
75.3
Belgium
74.3
Sweden
74.2
Denmark
74.1
Luxembourg
70.2
Austria
69.4
Switzerland
65.0
Portugal
64.4
Germany
62.5
Hungary
62.3
France
61.4
Netherlands
60.1
Ireland
56.9
Greece
56.8
Spain
54.1
Slovakia
51.7
Great Britain
49.3
Czech Republic
44.5
Italy
33.6
Ukraine
31.3
Russia
Poland
Romania
26.0
22.4
The concentration of food retailers in Northern European countries is particularly high. In Germany, the
five largest companies generate about 62 per cent of the total food sales; in Norway, the figure is around
76 per cent.
METRO RETAIL COMPENDIUM 2015/2016
Source: Planet Retail, status March 2014
26.2
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
139
THE 10 LARGEST FOOD RETAILERS IN EUROPE, 2013¹
NET SALES¹ IN € BILLION
Schwarz
Group
(D)²
Tesco
(GB)²
METRO GROUP
(D)
Carrefour
(F)
Rewe Group
(D)
Edeka Group
(D)
74.0
Aldi
(D)²
64.8
62.0
54.7
50.6
46.2
45.2
Auchan
(F)²
ITM (Intermarché)
(F)²
Leclerc
(F)
40.0
37.6
Sources: Company information, Planet Retail, METRO GROUP
34.0
TOTAL VOLUME OF TOP 10:
€509.1 BILLION
The ten largest food retailers in Europe (with indication of the home market) posted a total turnover of
around €510 billion.
Figures translated at average exchange rates for the financial year
1
The sales figures relate to each company’s total revenue in Europe (not exclusively food)
2
Estimate
© METRO AG 2015
140
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
THE 10 LARGEST CONSUMER ELECTRONICS STORES
IN EUROPE, 2014¹
NET SALES IN € MILLION
Media-Saturn
(METRO GROUP)
(D)²
Euronics
(NL)³
Dixons Carphone
(GB)³
20,981
E-Square
(B)³
Expert
(CH)³
Apple³
(USA)
14,450
12,400
11,800
Fnac
(F)
10,050
8,800
4,700
3,896
Darty
(GB)4
3,579
M.Video
(RUS)
3,544
TOTAL VOLUME OF TOP 10:
€94,200 MILLION
The ten largest consumer electronics store operators by sales volume in Europe (with indication of the
home market) reported a total turnover of more than €94 billion in 2014.
Only consumer electronics stores, electronics speciality stores and online retailers with predominantly consumer electronics products are considered
According to consolidated financial statements of METRO GROUP
Estimate
4
Financial year closed April 2014
1
2
3
METRO RETAIL COMPENDIUM 2015/2016
Sources: corporate publications, Planet Retail, articles from trade magazines, estimate of METRO GROUP
Amazon.com
(USA)3
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
141
THE 10 LARGEST DEPARTMENT STORES
IN EUROPE, 2013
NET SALES 1 IN € BILLION
Marks &
Spencer
(GB)1, 2
El Corte
Inglés
(E)1
Sources: annual reports, corporate information, press releases, Planet Retail, METRO GROUP analyses, average exchange rate according to OANDA
Argos
(GB)2
John Lewis
(GB)
Galeria Kaufhof,
Galeria Inno
(METRO GROUP)3
(D)
Debenhams
(GB)
8.7
Manor
(CH)
8.4
Karstadt
(D)2
4.7
Galeries
Lafayette
(F)2, 4
Dunnes Stores
(IRL)1
3.8
3.1
2.7
2.3
2.2
2.1
2.0
TOTAL VOLUME OF TOP 10:
€40.0 BILLION
The ten highest-grossing department store operators (with indication of the home market) reported a total
turnover of about €40 billion in 2013.
Only department stores
Estimate
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson's Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
4
Only Galeries Lafayette in Europe, without BHV
1
2
3
© METRO AG 2015
142
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL IN EUROPE
NET SALES 2013 IN € BILLION
1. SCHWARZ GROUP (D)¹ (€74.0 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 2
Lidl
Discounter
A, B, BG, CH, CY, CZ, D, DK, E, F, FIN, GB, GR,
H, HR, I, IRL, L, M, NL, P, PL, RO, S, SK, SLO
Kaufland
Hypermarket/superstore
BG, CZ, D, HR, PL, RO, SK
Lidl-shop.de
Online non-food store
D
Mega Cent
Discount superstore
D
PRESENT IN:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany,
Great Britain, Greece, Hungary, Ireland, Italy, Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland
2. TESCO (GB) (€64.8 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 2
Tesco
Superstore
GB, IRL
Tesco Extra
Hypermarket
GB, IRL
Tesco
Hypermarket/superstore
CZ, H, PL, SK
Tesco Express
Convenience store
CZ, GB, H, IRL, SK
Tesco.com
Online food store
CZ, GB, IRL, PL, SK
Tesco Metro
Supermarket
GB
Tesco
Supermarket
CZ, H, IRL, SK
Tesco Supermarkt
Neighbourhood store/supermarket
PL
One Stop
Convenience store
GB
Tesco Direct
Online non-food store
GB
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
Estimated sales volume
2
See page 171 for a key to the country abbreviations
3
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson's Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
4
Status: 2015
5
The sale of Real's operations in Russia, Romania and Ukraine was completed in the course of 2013. When the sale of Real Poland was finalised on 6 February 2014,
it marked the complete disposal of Real's business operations in Eastern Europe.
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
SALES BRAND
STORE FORMAT
PRESENT IN 2
Tesco Homeplus
Discount superstore
GB
Tesco
Department store
CZ, SK
Dobbies
Garden centre
GB
Zabka
Convenience store
CZ
F&F
Clothing store
CZ, PL
PRESENT IN:
Czech Republic, Great Britain, Hungary, Ireland, Poland, Slovakia
143
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
3. METRO GROUP (D) (€62.0 BILLION)
SALES BRAND 3
STORE FORMAT
PRESENT IN 2, 3, 4, 5
METRO Cash & Carry
Cash-and-carry store
A, BG, D, DK, F, H, HR, I, MD, RO, RUS, SK, SRB, UA
MAKRO Cash & Carry
Cash-and-carry store
B, CZ, E, GR, NL, P, PL
Media Markt
Consumer electronics store
A, B, CH, D, E, GR, H, NL, P, PL, RUS, S, TR
Media World
Consumer electronics store
I
Saturn
Consumer electronics store
A, D, I, L, PL
real,-
Hypermarket
D
Galeria Kaufhof
Department store
D
Galeria Inno
Department store
B
Mediamarkt.de
Online consumer electronics store
D
Mediaworldcompraonline.it
Online consumer electronics store
I
Saturn.de
Online consumer electronics store
D
Continued on next page
© METRO AG 2015
144
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL IN EUROPE
NET SALES 2013 IN € BILLION
SALES BRAND1
STORE FORMAT
PRESENT IN 2, 3
Saturnonlineshop.it
Online consumer electronics store
I
003.ru
Online consumer electronics store
RUS
redcoon
Online consumer electronics store
A, B, D, DK, E, F, I, NL, P, PL
Real.de
Online non-food store
D
real,- DRIVE
Online food store
D
Galeria-kaufhof.de
Online non-food store
D
Dinea
Restaurant
D
Sportarena
Sports/leisure store
D
PRESENT IN:
Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, France, Germany, Greece,
Hungary, Italy, Luxembourg, Moldova, Netherlands, Poland, Portugal, Romania, Russia,
Serbia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine
4. CARREFOUR (F) (€54.7 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 3
Carrefour
Hypermarket
B, E, F, I, PL, RO, TR
Carrefour Market
Supermarket
B, E, F, I, PL, RO
Carrefour Proximité
Neighbourhood store
F
Carrefour Express
Convenience store
B, E, I, PL, RO, TR
Promocash
Cash-and-carry store
F
Carrefour.fr
Online non-food store
F
Docks Market
Cash-and-carry store
I
Champion
Supermarket
B
Carrefour Online
Online food store
B, E
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson's Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
2
Status: 2015
3
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
SALES BRAND
STORE FORMAT
PRESENT IN 3
Rob
Supermarket
B
Carrefour
Petrol station shop
F
Supeco
Discounter
E
PRESENT IN:
Belgium, France, Italy, Poland, Romania, Spain, Turkey
145
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
5. REWE GROUP (D) (€50.6 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 3
Rewe
Supermarket
D
Penny
Discounter
A, BG, CZ, D, H, I, RO
Billa
Supermarket
A, BG, CZ, HR, I, RO, SK, UA
ITS
Tour operator
D
Toom Baumarkt
Home improvement centre
D
Merkur
Supermarket
A
DER, DERPART
Travel agency
D
Toom
Hypermarket/superstore
D
Kaufpark
Supermarket
D
Nahkauf
Neighbourhood store/supermarket
G
Bipa
Drugstore
A, HR, I
Rewe City
Neighbourhood store/supermarket
D
Billa
Neighbourhood store/supermarket
RUS
Rewe Center, Akzenta
Superstore
D
Adeg
Neighbourhood store/supermarket
A
Continued on next page
© METRO AG 2015
146
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL IN EUROPE
NET SALES 2013 IN € BILLION
SALES BRAND
STORE FORMAT
PRESENT IN1
Perfetto
Food department
D
AGM
Cash-and-carry store
A
ITS Billa
Travel agency
A
Sutterlüty
Supermarket
A
Toom Getränkemarkt
Beverage store
D
XXL Mega Discount
Discounter
RO
Kressner
Clothing store
D
Rewe online
Online food store
D
Merkur direkt
Online food store
A
Klee
Garden centre
D
Standa
Supermarket
D
Temma
Organic foods supermarket
D
Billa Box
Convenience store
A
Rewe to Go
Convenience store
D
Kölner Weinkeller
Beverage store
D
PRESENT IN:
Austria, Bulgaria, Croatia, Czech Republic, Germany, Hungary, Italy, Romania, Russia,
Slovakia, Ukraine
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
147
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
6. EDEKA GROUP (D) (€46.2 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
E-aktiv-Markt
Neighbourhood store/supermarket
D
Netto, Netto City, NP, Diska, Treff 3000 Discounter
D
E-Neukauf, E-Reichelt, Edeka, Kupsch
Supermarket
D
Nah & gut
Neighbourhood store
D
Marktkauf, E-Center
Hypermarket/superstore
D
Ratio
Hypermarket
D
Aktiv Discount
Superstore
D
E-C+C Großmarkt
Cash-and-carry store
D
K&U, Wünsche, Büsch, Thürmann,
Schäfer’s
Bakery
D
Edeka GV-Service
Food service
D
Trinkgut, Profi, Top-Getränke, Netto
Beverage store
D
Marktkauf, Herkules
Home improvement centre
D
CSK
Delivery wholesale store
D
Technik-Partner
Consumer electronics store
D
Sport Treff
Sports/leisure store
D
Edeka24.de
Online food store
D
PRESENT IN:
Germany
© METRO AG 2015
148
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL IN EUROPE
NET SALES 2013 IN € BILLION
7. ALDI (D)¹ (€45.2 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 2
Aldi Nord
Discounter
B, D, DK, E, F, L, NL, P, PL
Aldi Süd
Discounter
D, GB, H, IRL
Hofer
Discounter
A, SLO
PRESENT IN:
Austria, Belgium, Denmark, France, Germany, Great Britain, Hungary, Ireland,
Luxembourg, Netherlands, Poland, Portugal, Slovenia, Spain, Switzerland
8. AUCHAN (F)¹ (€40.0 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 2
Auchan
Hypermarket
F, H, I, L, PL, RO, RUS, UA
Simply Market
Supermarket
E, F, I, PL
Sma
Supermarket
I
Alcampo
Hypermarket
E
Jumbo
Hypermarket
P
Auchan City
Superstore
RUS
Atak
Supermarket
RUS
Alinéa
Furniture speciality store
F
Chronodrive
Online food store
F
Les Halles d’Auchan
Discounter
F
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
Estimated sales volume
2
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
SALES BRAND
STORE FORMAT
PRESENT IN 2
Pão de Açúcar
Supermarket
P
Auchan.fr
Online food store
F
Aro Rojo
Neighbourhood store
E
Grosbill
Online consumer electronics store
F
Box
Consumer electronics store
P
Auchan Direct
Online food store
PL
Radouga
Hypermarket/superstore
RUS
Easy Marché
Discounter
F
Auchan.ru
Online non-food store
RUS
Jumbo Online
Online food store
P
Eurobounta
Non-food discounter
F
A 2 pas
Neighbourhood store
F
Galeries Gourmandes
Supermarket
F
Simply Store
Neighbourhood store
E
Alcampo.es
Online food store
E
Little Extra
Non-food store
F
Auchan Drive
Online food store
L
PRESENT IN:
France, Hungary, Italy, Luxembourg, Poland, Portugal, Romania, Russia, Spain, Ukraine
149
© METRO AG 2015
150
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL IN EUROPE
NET SALES 2013 IN € BILLION
9. LECLERC (F) (€37.6 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Leclerc
Hypermarket/superstore
AD, E, F, PL
Leclerc
Superstore
P
Leclerc
Hypermarket
SLO
Leclerc
Supermarket
F, PL
E.Leclerc-Conad
Hypermarket/superstore
I
E.Leclerc Drive
Online food store
F
Espace Culturel
Music/video store
E, F, PL
Voyages E.Leclerc
Travel agency
F
Brico E.Leclerc
Home improvement centre
F, P
La Parapharmacie E.Leclerc
Perfumery/beauty store
F
L’Auto
Automotive service centre
F, P
Une heure pour soi
Perfumery/beauty store
F
Leclerc Express
Supermarket
F
Sport & Loisirs
Sports/leisure store
F
Optique E.Leclerc
Optical store
F
E.Leclerc
Petrol station shop
F
hipernet24
Online food store
PL
Via cultural
Music/video store
P
Uma hora para si
Perfumery/beauty store
P
PRESENT IN:
Andorra, France, Italy, Poland, Portugal, Slovenia, Spain
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / EUROPE / THE LEADING RETAIL COMPANIES
151
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
10. ITM (INTERMARCHÉ) (F) (€34.0 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Intermarché Super
Supermarket
B, F
Intermarché Hyper
Hypermarket
F
Intermarché
Supermarket
P, PL
Bricomarché
Home improvement centre
F, P, PL
Intermarché Contact
Neighbourhood store/supermarket
F
Netto
Discounter
F
Roady
Automotive service centre
F, P
Interex
Supermarket
BIH, SRB
Drive.intermarche.com
Online food store
F
Poivre Rouge
Restaurant
F
Intermarché Express
Convenience store
F
Norman-Vivat
Other food wholesale store
RUS
Culture et Loisirs
Music/video store
F
PRESENT IN:
Belgium, Bosnia and Herzegovina, France, Poland, Portugal, Russia, Serbia
© METRO AG 2015
152
DATA, FIGURES AND FACTS / WORLD
WORLD
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD
153
© METRO AG 2015
154
DATA, FIGURES AND FACTS / WORLD / CONSUMER GOODS TRADE
CONSUMER GOODS WORLD TRADE, 2014
CONSUMER GOODS TRADE, TOTAL: €14,766 BILLION
WORLD POPULATION, TOTAL: 7,254 MILLION PEOPLE
NORTH AMERICA
355 m S
€3,040 bn 4.9%
20.6%
CENTRAL AND
SOUTH AMERICA
8.6%
10.7%
Source: Planet Retail
620 m S
€1,578 bn
Almost 50 per cent of consumer goods trade focuses on almost one fifth of the world’s population (Europe
and North America).
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD / CONSUMER GOODS TRADE
Share of the
world’s population
155
Share of global
consumer goods trade
WESTERN EUROPE 403 m S
5.6% €2,346 bn
EASTERN EUROPE
412 m S
5.7%
€1,167 bn
7.9% EUROPE, TOTAL
815 m S
11.3%
€3,513 bn
23.8% 15.9%
ASIA
4,290 m S
€5,747 bn AFRICA
1,114 m S
€660 bn 15.4%
4.5%
59.3%
39.0%
OCEANIA
45 m S
€207 bn
0.6%
1.4%
CONTINENT
in m S
in % Share of the world’s population
in € bn
in % Share of global consumer goods trade
© METRO AG 2015
156
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
THE 10 LARGEST FOOD RETAILERS
WORLDWIDE, 2013
NET SALES 1 IN € BILLION
Walmart
(USA)
Costco
(USA)
Tesco
(GB)
Carrefour
(F)
351.1
Kroger
(USA)
Schwarz Group
(D)2
METRO GROUP
(D)
Aldi
(D)2
Target
(USA)
77.9
77.1
74.9
74.5
74.0
65.7
56.3
55.0
54.5
TOTAL VOLUME OF TOP 10:
€961.0 BILLION
The ten food retailers with the highest turnover worldwide (based on their home market) generated total
sales of around €960 billion in 2013.
Average exchange rates for the financial year
1
The turnover figures relate to the total turnover of the companies worldwide (not only food)
2
Estimate
METRO RETAIL COMPENDIUM 2015/2016
Sources: Corporate information, Planet Retail, METRO GROUP
Walgreens
(USA)
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
157
THE 10 LARGEST CONSUMER ELECTRONICS STORES
WORLDWIDE, 2014¹
NET SALES IN € MILLION
Amazon.com
(USA)²
Best Buy
(USA)3
Apple
(USA)2
Media-Saturn
(METRO GROUP)
(D)
34,000
Expert
(CH)2
31,808
Euronics
(NL)2
Yamada Denki
(J)4
Suning
(CN)2
Sources: Corporate publications, Planet Retail, articles from trade magazines, estimate of METRO GROUP
23,700
20,981
19,400
14,700
14,095
Dixons Retail
(GB)2
E-Square
(B)2
13,000 12,400
10,050
TOTAL VOLUME OF TOP 10:
€194,134 MILLION
In 2014, the ten top-selling consumer electronics retail companies worldwide (with indication of the home
market) generated a total volume of more than €194 billion.
¹Only consumer electronics stores, electronics speciality stores and online retailers with predominantly consumer electronics products are considered
²Estimate
³Financial year closed February 2014
4
Financial year closed March 2014
© METRO AG 2015
158
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
THE 20 LARGEST FOOD RETAILERS ACCORDING
TO FOOD SALES, 2013
TOTAL VOLUME OF TOP 20: $785.11 BILLION
RANK
COMPANY
BUSINESS ACTIVITY
 1
Nestlé (CH)
Food in general
 2
Procter & Gamble (USA)
Personal hygiene, food in general
 3
PepsiCo (USA)
Non-alcoholic beverages, snacks
 4
Unilever (GB/NL)
Food in general, washing and cleaning agents
 5
Coca-Cola Co. (USA)
Non-alcoholic beverages
 6
AB InBev (B)
Beer
 7
JBS (BR)
Meat
 8
Mondolez (USA)
Food in general
 9
Archer Daniels Midland (USA)
Food in general
10
Tyson Foods (USA)
Meat, sausage
11
Philip Morris International (USA)
Tobacco
12
L‘Oréal (F)
Cosmetics
13
Groupe Danone (F)
Dairy, water
14
Heineken (NL)
Beer
15
British American Tobacco (GB)
Tobacco
16
Japan Tobacco (J)
Tobacco
17
Kirin Brewery (J)
Beer, dairy
18
Kraft Foods (USA)
Food in general
19
Diageo (GB)
Alcoholic beverages
20
General Mills (USA)
Food in general
The 20 largest FMCG2 companies worldwide generate aggregate food sales of almost $800 billion.
1
2
Change in turnover excluding consumption tax in local currency
Fast Moving Consumer Goods
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
TURNOVER IN $ BILLION (NET)
ANNUAL PERCENTAGE CHANGE¹
99.46
84.17
66.42
66.14
46.85
43.20
41.16
159
+1.1 ↑
+0.6 ↑
+1.4 ↑
+0.2 ↑
–2.2 ↓
+8.6 ↑
+10.5 ↑
35.30
+0.8 ↑
34.84
+0.3 ↑
34.37
+3.3 ↑
31.22
–0.1 ↓
30.52
+5.6 ↑
28.29
25.50
23.88
+5.4 ↑
+7.9 ↑
–0.8 ↓
19.81
+2.4 ↑
18.22
–0.7 ↓
17.89
+4.9 ↑
17.77
+6.7 ↑
Source: OC&C – FMCG Champions
20.10
–13.8 ↓
© METRO AG 2015
160
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
INTERNATIONAL PRESENCE OF SELECTED
RETAIL AND WHOLESALE COMPANIES, 2014
NUMBER OF COUNTRIES PER CONTINENT/REGION¹
NORTH AMERICA
WALMART
3
ALDI
1
CENTRAL AND
SOUTH AMERICA
TOTAL NUMBER OF COUNTRIES
METRO GROUP 30
WALMART
28
SCHWARZ GROUP
26
ALDI
17
AUCHAN
15
TENGELMANN GROUP
13
TESCO
12
CARREFOUR
11
CASINO
11
REWE GROUP
11
2
WALMART
9
CASINO
4
CARREFOUR
2
In terms of country coverage, METRO GROUP is the world’s leading retail and wholesale company.
1
2
Only those country operations are shown in which the given company has a share of at least 50 per cent
Status: 2015
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
WESTERN EUROPE
161
EASTERN EUROPE
SCHWARZ GROUP
16
METRO GROUP 2
14
ALDI
12
SCHWARZ GROUP
10
METRO GROUP 2
11
REWE GROUP
8
AUCHAN
5
TENGELMANN GROUP
8
TENGELMANN GROUP
5
AUCHAN
5
CARREFOUR
4
TESCO
4
CASINO
3
ALDI
3
REWE GROUP
3
CARREFOUR
2
TESCO
2
WALMART
1
Sources: Planet Retail, corporate information, METRO GROUP
ASIA
METRO GROUP 2
5
TESCO
5
AUCHAN
4
CARREFOUR
3
CASINO
3
WALMART
3
MIDDLE EAST AND AFRICA
WALMART
12
CASINO
3
OCEANIA
AUCHAN
1
ALDI
TESCO
1
1
© METRO AG 2015
162
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL WORLDWIDE
NET SALES 2013 IN € BILLION
1. WALMART (USA) (€351.1 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Walmart Supercenter
Hypermarket
BR, CN, CR, GCA, MEX, PRI, RA, USA
Walmart
Discount superstore
CDN, PRI, USA
Asda
Hypermarket/superstore
GB
Walmart Supercentre
Hypermarket
CDN
Seiyu
Hypermarket/superstore
J
Bodega Aurrera
Discount superstore
MEX
Asda Wal-Mart Supercentre
Hypermarket
GB
Walmart.com
Online non-food store
USA
Lider
Hypermarket
RCH
Walmart Neighborhood Market
Superstore
USA
Makro
Cash-and-carry store
ZA
CBW
Cash-and-carry store
BW, LS, MOC, NAM, SZ, ZA
Bodega Aurrera Express
Discounter
MEX
Asda Supermarket
Supermarket
GB
Asda Living
Discount superstore
GB
Livin
Hypermarket
J
Hiper Bompreço
Hypermarket/superstore
BR
Mi Bodega Aurrera
Discounter
MEX
Big
Hypermarket
BR
Asda.com
Online food store
GB
Superama
Supermarket
MEX
Express de Lider
Supermarket
RCH
Samsclub.com
Online non-food store
USA
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
SALES BRAND
STORE FORMAT
PRESENT IN1
Cambridge Food
Supermarket
ZA
Sunny
Supermarket
J
Todo Dia
Discounter
BR
Suburbia
Clothing store
MEX
Despensa Familiar
Discounter
ES, GCA, HN
Yihaodian
Online food store
CN
Pali
Discounter
CR, NIC
Changomas
Discount superstore
RA
Maxxi Atacado
Cash-and-carry store
BR
Builders Warehouse
Home improvement centre
BW, MOC, ZA
Acuenta
Discount superstore
RCH
Bompreço
Supermarket
BR
Trust-Mart
Hypermarket
CN
BestPrice Modern Wholesale
Cash-and-carry store
IND
Vips
Restaurant
MEX
Nacional
Supermarket
BR
Paiz
Supermarket
GCA, HN
Mas-x-menos
Superstore
CR
Maxi Despensa
Discounter
ES, GCA, HN
Builders Express
Home improvement centre
ZA
Maxi Palí
Discounter
CR, NIC
Builders Trade Depot
Home improvement centre
ZA
La Despensa de Don Juan
Supermarket
ES
163
Continued on next page
© METRO AG 2015
164
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL WORLDWIDE
NET SALES 2013 IN € BILLION
SALES BRAND
STORE FORMAT
PRESENT IN1
Amigo
Superstore
PRI
The-seiyu.com
Online food store
J
Mercadorama
Supermarket
BR
Kangela
Home improvement centre
MZ
Lider.cl
Online food store
RCH
Walmart Express
Supermarket
USA
La Union
Supermarket
NIC
Walmart Online
Online non-food store
BR
Walmart Supercenter
Superstore
ES
Supermercado de Walmart
Superstore
USA
Kawena
Delivery wholesale store
MZ
Changomas Express
Discounter
RA
Walmart
Superstore
HN
Walmart Neighborhood Market
Supermarkt
CN
Walmart Online
Online food store
RA
Walmart Supermercado
Supermarket
RA
Super Ahorros
Discounter
PRI
Smart Choice
Hypermarket/superstore
CN
Samsclub.cn
Online non-food store
CN
Smart Choice
Discounter
CN
PRESENT IN:
Argentina, Botswana, Brazil, Canada, Chile, China, Costa Rica, El Salvador, Ghana, Great Britain,
Guatemala, Honduras, India, Japan, Lesotho, Malawi, Mexico, Mozambique, Namibia, Nicaragua,
Nigeria, Puerto Rico, South Africa, Swaziland, Tanzania, Uganda, USA, Zambia
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
165
2. COSTCO (USA) (€77.9 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Costco
Cash-and-carry store
AUS, CDN, GB, J, MEX, PRI, RC, ROK, USA
Costco.com
Online food-food store
USA
PRESENT IN:
Australia, Canada, Great Britain, Japan, Mexico, Puerto Rico, South Korea, Taiwan, USA
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
3. TESCO (GB) (€77.1 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Tesco
Hypermarket/superstore
CZ , H, PL, SK
Tesco
Superstore
GB, IRL
Tesco
Hypermarket
MAL
Tesco Extra
Hypermarket
GB, IRL
Homeplus
Hypermarket/superstore
ROK
Tesco Express
Convenience store
CZ, GB, H, IRL, SK
Tesco Lotus
Hypermarket/superstore
T
Tesco.com
Online food store
CZ, GB, IRL, PL, SK
Tesco Metro
Supermarket
GB
Tesco
Supermarket
CZ, H, IRL, SK
Tesco Services
Services
GB, IRL
Hymall
Hypermarket
CN
Tesco Supermarket
Neighbourhood store/supermarket
PL
Tesco Lotus Express
Convenience store
T
Homeplus Express
Convenience store
ROK
Continued on next page
© METRO AG 2015
166
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL WORLDWIDE
NET SALES 2013 IN € BILLION
SALES BRAND
STORE FORMAT
PRESENT IN1
One Stop
Convenience store
GB
Kipa
Hypermarket/superstore
TR
Tesco Direct
Online non-food store
GB
Talad Lotus
Neighbourhood store/supermarket
T
Tesco Homeplus
Discount superstore
GB
Tesco
Department store
CZ, SK
Dobbies
Garden centre
GB
E-homeplus
Online food store
ROK
Kipa Ekspres
Convenience store
TR
Kipa
Neighbourhood store/supermarket
TR
F&F
Clothing store
CZ, PL, SA
Zabka
Convenience store
CZ
Tesco Legou Express
Convenience store
CN
PRESENT IN:
China, Czech Republic, Great Britain, Hungary, India, Ireland, Malaysia, Poland, Slovakia,
South Korea, Thailand, Turkey
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
167
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
4. CARREFOUR (F) (€74.9 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Carrefour
Hypermarket
B, BG, BR, CN, E, F, I, RC, RO, TR
Carrefour
Hypermarket/superstore
PL, RA
Carrefour Market
Supermarket
B, BG, E, F, I, PL, RA, RO
Atacadão
Cash-and-carry store
BR
Carrefour Proximité
Neighbourhood store
F
Carrefour Express
Convenience store
B, BR, E, I, PL, RA, RO
Promocash
Cash-and-carry store
F
carrefour.fr
Online non-food store
F
Carrefour Bairro
Supermarket
BR
Carrefour Expres
Supermarket
TR
Docks Market
Cash-and-carry store
I
Champion
Supermarket
B
carrefour.com.br
Online non-food store
BR
Carrefour Online
Online food store
B, E
Carrefour Maxi
Cash-and-carry store
RA
Carrefour Wholesale Cash & Carry
Cash-and-carry store
IND
Rob
Supermarket
B
Carrefour
Petrol station shop
F
Market
Supermarket
RC
carrefour.com.cn
Online non-food store
CN
Supeco
Discounter
E
PRESENT IN:
Argentina, Belgium, Brazil, China, France, India, Italy, Poland, Romania, Spain, Taiwan
© METRO AG 2015
168
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL WORLDWIDE
NET SALES 2013 IN € BILLION
5. KROGER (USA) (€74.5 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Kroger
Hypermarket/superstore
USA
Fred Meyer
Hypermarket
USA
Ralphs
Hypermarket/superstore
USA
Fry’s Food Stores
Hypermarket
USA
King Soopers
Hypermarket
USA
Smith’s Food & Drug Center
Hypermarket/superstore
USA
Food4Less
Hypermarket/superstore
USA
Kwik Shop, Loaf ’N Jug, Quik Stop
Markets, Tom Thumb Food Stores,
Turkey Hill Minit Markets
Petrol station shop
USA
Dillons Food Stores
Hypermarket/superstore
USA
Jay C Food Store,
QFC Quality Food Centers
Superstore
USA
PRESENT IN:
USA
6. SCHWARZ GROUP (D)2 (€74.0 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN1
Lidl
Discounter
A, B, BG, CH, CY, CZ, D, DK, E, F, FIN, GB, GR, H,
HR, I, IRL, L, M, NL, P, PL, RO, S, SK, SLO
Kaufland
Hypermarket/superstore
BG, CZ, D, HR, PL, RO, SK
lidl-shop.de
Online non-food store
D
Mega Cent
Discount superstore
D
PRESENT IN:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France,
Germany, Great Britain, Greece, Hungary, Ireland, Italy, Luxembourg, Malta, Netherlands,
Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
See page 171 for a key to the country abbreviations
2
Estimated sales volume
3
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson's Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
4
Status: 2015
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
169
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
7. METRO GROUP (D) (€ 65.7 BILLION)
SALES BRAND 3
STORE FORMAT
PRESENT IN1, 4
METRO Cash & Carry
Cash-and-carry store
A, BG, CN, D, F, H, HR, I, IND, J, KZ, MD, PK, RO,
RUS, SK, SRB, TR, UA, VN
MAKRO Cash & Carry
Cash-and-carry store
B, CZ, E, GR, NL, P, PL
Media Markt
Consumer electronics store
A, B, CH, D, E, GR, H, NL, P, PL, RUS, S, TR
Media World
Consumer electronics store
I
Saturn
Consumer electronics store
A, D, I, L, PL
real,-
Hypermarket
D
Galeria Kaufhof
Department store
D
Galeria Inno
Department store
B
Mediamarkt.de
Online consumer electronics store
D
Mediaworldcompraonline.it
Online consumer electronics store
I
Saturn.de
Online consumer electronics store
D
Saturnonlineshop.it
Online consumer electronics store
I
redcoon
Online consumer electronics store
A, B, D, E, I, NL, P, PL
003.ru
Online consumer electronics store
RUS
Real.de
Online non-food store
D
real,- DRIVE
Online food store
D
Galeria-kaufhof.de
Online non-food store
D
Dinea
Restaurant
D
Sportarena
Sports/leisure store
D
PRESENT IN:
Austria, Belgium, Bulgaria, China, Croatia, Czech Republic, France, Germany, Greece, Hungary,
India, Italy, Japan, Kazakhstan, Luxembourg, Moldova, Netherlands, Pakistan, Poland, Portugal,
Romania, Russia, Serbia, Slovakia, Spain, Sweden, Switzerland, Turkey, Ukraine, Vietnam
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DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
WHO BELONGS TO WHO?
FOOD RETAIL WORLDWIDE
NET SALES 2013 IN € BILLION
8. ALDI (D)1 (€56.3 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 2
Aldi Süd
Discounter
AUS, CH, D, GB, H, IRL, USA
Aldi Nord
Discounter
B, D, DK, E, F, L, NL, P, PL
Trader Joe’s
Supermarket
USA
Hofer
Discounter
A, SLO
PRESENT IN:
Australia, Austria, Belgium, Denmark, France, Germany, Great Britain, Hungary, Ireland,
Luxembourg, Netherlands, Poland, Portugal, Slovenia, Spain, Switzerland, USA
9. TARGET (USA) (€55.0 BILLION)
SALES BRAND
STORE FORMAT
PRESENT IN 2
Target/PFresh
Discount superstore
USA
Target
Discount superstore
USA, CDN
SuperTarget
Hypermarket
USA
Target.com
Online non-food store
USA
CityTarget
Hypermarket/superstore
USA
PRESENT IN:
Canada, USA
Only those country operations are shown in which the given company has a share of at least 50 per cent
1
Estimated sales volume
2
See page 171 for a key to the country abbreviations
METRO RETAIL COMPENDIUM 2015/2016
DATA, FIGURES AND FACTS / WORLD / THE LEADING RETAIL COMPANIES
171
10. WALGREENS (USA) (€54.5 BILLION)
SALES BRAND 3
STORE FORMAT
PRESENT IN1, 4
Walgreens
Drugstore
PRI, USA
PRESENT IN:
Puerto Rico, USA
Sources: Planet Retail, Trade Dimensions, METRO GROUP, status of sales lines 2013 unless otherwise stated
COUNTRY ABBREVIATIONS
AAustria
ESpain
LTLithuania
RCHChile
ALAlbania
EATTanzania
LVLatvia
RIIndonesia
ANDAndorra
EAUUganda
MMalta
AUSAustralia
ES
MALMalaysia
BBelgium
ESTEstonia
MD FFrance
MEXMexico
RUSRussia
FINFinland
MKMacedonia
SSweden
MNEMontenegro
SDSwaziland
BGBulgaria
BIH
Bosnia and
Herzegovina
BRBrazil
BYBelarus
CDNCanada
CHSwitzerland
CNChina
COColumbia
CR
Costa Rica
GB
El Salvador
Great Britain
GCAGuatemala
GHGhana
GRGreece
H
Hungary
HNHonduras
HRCroatia
I
Italy
Moldova
MOCMozambique
MWMalawi
NNorway
ROK
South Korea
SGPSingapore
SKSlovakia
NAMNamibia
SLOSlovenia
NGRNigeria
SRBSerbia
NICNicaragua
TThailand
NLNetherlands
TRTurkey
PPortugal
INDIndia
CYCyprus
PKPakistan
IRLIreland
CZ
PLPoland
Czech Republic
RORomania
UAUkraine
USAUnited States
of America
JJapan
PRI
DGermany
KZ Kazakhstan
RAArgentina
DKDenmark
LLuxembourg
RBBotswana
ZZambia
DZAlgeria
LSLesotho
RCTaiwan
ZA
Puerto Rico
VNVietnam
South Africa
© METRO AG 2015
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GLOSSARY
www.metro-retailcompendium.de/en/glossary/
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY
173
GLOSSARY –
ALL ABOUT RETAIL
174
SPECIAL TOPICS
180
A–Z
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GLOSSARY / SPECIAL TOPICS
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MILLENNIALS
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CONTENT SNACKER This term is associated with young adults born roughly between
1980 and the mid-1990s – the so-called millennials. The term content snacker refers
to the changed habits of this age group in how they read and process content due to
progressive digitisation. Just as one would consume a quick snack on the go, this gener­
ation mainly consumes information in small bites.
ROPO EFFECT ROPO is short for “research online, purchase offline”. The ROPO effect
refers to the concept that purchasing decisions regarding non-food items are more and
more frequently being made during internet research, while the actual purchase of the
selected product is made in stationary retail. Retail is responding to this development
by dovetailing the different sales channels. See also multichannel retailing and
omnichannel retail.
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SWING SHOPPER Refers to consumers who – without having a preference – make
purchases online as well as in retail stores, in other words, by swinging back and forth
from one shopping channel to another. The typical swing shopper is between 25 and
35 years of age and is thus part of the so-called millennials, the generation born be­tween 1980 and the mid-1990s. The oldest representatives of this age group are therefore just old enough to have experienced the analogue world before the internet found
its way into every household.
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G
S TA R T - U P T I M E
ACTIVE SOURCING Active recruitment. Unlike the traditional methods of recruiting
staff – such as placing advertisements – active sourcing means that companies actively
identify and contact potential employees themselves. Potential sources for this form of
recruiting include social media, conventions and competing companies.
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CROWDFUNDING A neologism referring to projects, products or business ideas that are
financed through microloans provided by a variety of individuals. Special online platforms offer anyone the opportunity to present an idea and find supporters for it. Invest­
ors, depending on the extent of their contribution, receive a preset return, often in the
form of discounts. If the investors receive a financial return and interest, as with a bank
loan, it is also referred to as crowd investing.
MICROLOAN Small-size loan of one to a few thousand euros. In their original form,
microloans – especially in developing countries (emerging markets) – are a way to
reduce poverty by encouraging the establishment of small businesses with the thought
of helping people help themselves. Nowadays, microloans are also granted to entrepreneurs in industrialised countries who are looking to become self-employed as a way to
emerge from unemployment, for example. In 2010, the German federal government
commissioned the establishment of the Mikrokreditfonds Deutschland fund for this very
purpose. A special form of granting microloans is crowdfunding.
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SERVICE
CLICK AND COLLECT This term describes purchases made by clicking on items in an
online shop, where the buyer, instead of having the goods sent to his or her home,
chooses the option to pick up their order at the store. As a part of multichannel retailing,
this form of shopping offers consumers the possibility to combine an online shopping
experience with the advantages of stationary retail, such as personalised sales advice.
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TANTE-EMMA-LADEN (CORNER STORE) Literally “Aunt Emma’s shop”. In the German-speaking world, this refers to a small, owner-run retail business where food and
everyday products (fast-moving consumer goods, FMCG) are sold, similar to a traditio­n­al corner store. Tante-Emma-Läden were very common into the 1960s. With the
introduc­tion of modern merchandising concepts such as supermarkets, superstores,
hyper­markets and discounters, many of these businesses were forced to close. Today,
they are almost exclusively found in rural areas, where they supply the local population
with goods for everyday needs. See also convenience store. In a figurative sense, the
term now stands for a shop where healthy personal relationships are maintained be­tween the shop operator and the customers and where excellent service is a priority.
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GLOSSARY / “1 plus 4” model
A
“1 PLUS 4” MODEL A nutrition labelling concept developed by Germany’s Federal
­ inistry of Food and Agriculture (Bundesministerium für Ernährung und Landwirtschaft,
M
BMEL). With the “1 plus 4” model, the energy content of food is shown on the front of the
packaging along with the absolute quantities of sugar, fat, saturated fatty acids and salt
contained in the product. The labelling also shows what percentage of the recommended
daily allowance this corresponds to. Furthermore, it states how many grams of the product this analysis relates to, such as the total weight of the package. There is also a table
showing nutritional information on the back of the packaging. M
­ ETRO GROUP already
began rolling out the “1 plus 4” model on its own-brand products in 2008.
1WORLDSYNC 1WorldSync is the world’s leading provider of integrated data manage-­
ment solutions for the retail sector. The company resulted from the merger of SA2
Worldsync (GS1 Germany) and 1Sync (GS1 US) in 2012. With its expertise in global data
synchronisation (GDS), product information management (PIM) and electronic data
interchange (EDI), 1WorldSync enables retail, wholesale and industrial companies to
efficiently map and execute key product, master and transaction data processes. Worldwide, more than 15,000 companies in more than 50 countries use solutions and services
from 1WorldSync, including retail and wholesale companies such as Walmart, Tesco and
­METRO GROUP as well as suppliers including Dr. Oetker, Henkel, Coca-Cola and Sony.
They use 1WorldSync to realise the professional exchange of article master data on the
basis of international GDSN (Global Data Synchronisation Network) standards.
ADDITIVES See food additives.
AGGLOMERATION A regional concentration (cluster) of retail companies with com-­
panies from the same or different lines of business in one location. Retail companies
with different assortments, for example, often settle in the direct vicinity of restaurants,
telecommunications providers, etc. A wide selection of products and services makes
shopping areas, such as pedestrian zones, more attractive. The result is a higher customer frequency and thus greater sales potential for the retail sector.
ARTICLE The smallest indivisible unit of a merchandise assortment. The classification
system of a merchandise portfolio can typically be structured as follows:
>> Type of merchandise (e.g., pasta),
>> Merchandise group (e.g., noodles),
>> Article group (e.g., spaghetti),
>> Article (e.g., spaghetti from a certain manufacturer of branded products in a certain
packaging size).
Each article sets itself apart from other articles by at least one characteristic such as
size, colour, weight, brand, packaging, taste, shape, etc.
ARTICLE CODING SYSTEMS A unique identification number is needed for item data to
be exchanged smoothly across all stages of the retail chain. A uniform, machine-readable
coding system is essential for automatic reading and management systems to be used
­efficiently. The introduction of the Global Trade Item Number (GTIN, formerly known as
EAN) in 1977 paved the way for such a system. To date, it has been rolled out in more than
120 countries. The GTIN is a key component of modern merchandise management systems.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / AUCTION
The GS1 basic number which it contains ensures that each code is unique. Embedding
this in a barcode or transponder is a particularly good way of allowing the identifier to
be processed automatically within various applications, such as scanning it using master cash registers, conducting inventory checks, logging incoming goods or picking and
managing production. The EAN barcode commonly used in Germany can be produced
using any standard printing method, either when the packaging is printed or on a label
that can be added later. If the GTIN is to be transmitted using radio frequency technology,
it is embedded in an Electronic Product Code (EPC). The EPC is a globally unique serial
number which can be used to clearly identify any object. It also contains the GS1 basic
number. This is available from GS1 Germany.
ASSORTMENT The range of products that a retail company offers its customers. The
core assortment depends on the industry sector in which the retailer is active. It is complemented by the so-called marginal assortment. Supplementary assortments comprise
merchandise found outside of the sector. In food retail, for example, all foods such as
meat, vegetables and pasta belong to the core assortment, whereas pots, pans or washing-up liquid make up the marginal range. Assortments are generally classified as either
“full” or “specialised”, and they may vary in breadth and depth. Every retail company defines the breadth and depth of its specific product range. Another differentiation is made
between specialised and full assortments. Specialised assortments cater to the needs
of a narrowly defined target group or consumer group, for example, only to athletes. Full
assortments always comprise different merchandise groups.
ASSORTMENT COMPETENCY The ability to present and market a line assortment
in a way that is competitive and convinces the customer. This is assumed mostly with
specialised assortments. Characteristic features of high assortment competency are
a wide range and/or specialised merchandise offering, a good price-performance
ratio, high quality and the clear and logical display of merchandise. All sales lines of
­METRO GROUP boast high assortment competency, which means that they tune their
assortment strictly to the needs of their respective customers.
AUCTION A special form of sale in which potential buyers make bids. Auctions are also
used as a specific form of procurement. In this case, potential suppliers submit a price
as sellers at which they would sell merchandise. The classic form is the open auction, in
which all bidders know what their competitors are willing to pay. In silent auctions, participants make their bids without knowing what their competitors are offering. Open auctions can be either ascending or descending: in an ascending auction (English auction),
bidding starts at a set price and continues until no higher bids are placed. The last bid is
accepted. In a descending auction (Dutch auction), the process is reversed: the auction
starts at a fixed maximum price and bidders place lower and lower bids. The bidder who
makes the lowest offer wins the auction. Currently, internet auctions are popular. One
special type of online procurement auction is the Japanese auction. In an auction of this
kind, suppliers do not place bids manually. The price falls from its starting level at set
intervals until only one supplier is willing to deliver goods for the offered price in question. The auction then finishes immediately. Suppliers’ offers are often collected using an
online request for proposal (RFP) before the auction begins.
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AUDIT A distinction is made between internal and external auditing. Audits assess processes and structures in a company and within its environment, such as the methods
used by suppliers. The auditing process examines whether predefined requirements and
guidelines are being complied with. These requirements could be specified as part of an
ISO standard or they could result from a company’s voluntary undertakings. Following
an external audit, the company may be certified to show that it complies with the relevant
standards. Audits are usually conducted on a regular basis. They play an important role
in quality assurance as they provide information about the effectiveness of measures
taken as part of ongoing process optimisation. Auditing is also a useful way of verifying
suppliers’ processes and social standards, for example, as part of BSCI (Business Social
Compliance Initiative).
B
BARCODE A code used for data processing in conjunction with either optical or magnetic
readers. Barcodes are used on receipts, product packaging and to automatically control
machines. The EAN barcode is the best-known type of barcode. The barcode allocates a
price to the merchandise, for example by means of the scanner at the electronic checkout. The fact that prices do not have to be entered manually speeds up the checkout
process. See also article coding systems.
BASKET OF CONSUMER GOODS (AVERAGE) Goods and services selected for stat­
istical purposes and that are considered representative of average consumer behaviour.
The basket of consumer goods is used to calculate consumer price indices (price index)
in Germany. It currently comprises around 750 products and services. A weighting system
reflects the share of individual goods and services in overall consumer expenditure. The
weighting system quantifies, for example, spending on rent, food, luxury goods or clothing as a share of overall expenditure. The Federal Statistical Office calculates the level
and structure of household spending using the results of random sampling of income
and consumption carried out every five years and annual economic statistics. The basket
of goods is also the basis for calculating the consumer price index (CPI). It provides retail
companies with basic information for their strategic positioning and assortment policy.
BENCHMARK IN RETAIL A best-in-class orientation model for a retail company’s own
target definitions. The aim is to optimise processes and thereby improve performance.
Peers, companies from other sectors and organisations may serve as role models.
BENCHMARKING A tool for analysing competition and the basis for the development of
optimisation strategies. Benchmarking represents the continuous, cross-industry search
for role models and the comparison of their strategies, processes, methods, services
and/or products with the company’s own performance. The aim of benchmarking is to
identify and analyse differences and deduce opportunities to improve one’s own oper­
ations to achieve optimal performance (best practice principle). Example: a retail company compares its customer retention programme with that of an airline and, on the
basis of the knowledge obtained, works out an approach to optimise its potential. See
also benchmark in retail.
BEST AGERS A growing marketing target group that encompasses people who are no
longer young adults but who are not old in the traditional sense of the word. The target
group has a broad range: depending on the definition, it can include all people older than
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Brand-name products
40, 50 or 60. As a result of demographic changes, the percentage of best agers will grow
in Germany in the years ahead. At the same time, the buying power of older people is
rising. Today, people older than 50 in Germany have about €750 billion available to them
each year (METRO AG evaluation). The retail sector has begun to shape its sales and
marketing strategies to address this changing buyer structure. Retail companies are
addressing the growing number of older customers in such areas as purchasing, store
design and category management. For example, the ­METRO GROUP sales brand Real
presents products that are in demand among best agers in special merchandise groups.
BEST PRACTICE PRINCIPLE A strategy based on a company’s outstanding workflow
structures and processes or methods as well as the implementation of optimisation
measures in one’s own company. If, for instance, a company wants to improve its perform­­
ance in terms of merchandise logistics or quality assurance on a certain stage of the
value chain, it will proceed as follows: once the target specifications have been defined,
other suitable companies are selected that are considered to be benchmarks (role
models) in that area. The performance levels of all companies are compared with each
other, and the best practice – that is, the most efficient approach and procedure, is determined. After that, the necessary measures and actions for optimising one’s own methods
are identified and implemented. See also benchmarking and benchmark in retail.
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BIG DATA The compilation of all of our everyday data. Once compiled, these data are
used to, for example, personalise communication with customers, and offer them goods
and services tailored to their needs on the basis of patterns. Big data are also useful for
monitoring the competition and for dynamic pricing, forecasts as well as ad hoc analyses
used in staff and product planning.
BRAND MANAGEMENT Brand management consists of strategies used to successfully
position brand-name products over a sustained period of time. As a result, brand
management is a basic prerequisite for the success of brand manufacturers and retail
companies. Brands with which customers establish long-term relationships of trust are
created through a variety of factors, such as quality, design, in-store presentation and
advertising. These brand management strategies are fixed components of a company’s
tradition. In brand management, pricing is a central element and an important means
with which companies can position and manage a brand over the long term.
BRAND-NAME PRODUCTS Consumer goods that are marketed under an individual label,
or brand, by producers or retail companies. A brand can be a name, emblem, design,
symbol or a combination of these elements that serves to identify a product or service.
The brand helps distinguish a product from its competitors. Further characteristics are:
>> Consistent quality,
>> Intensive advertising,
>> Widespread distribution and
>> Comparatively high name recognition.
A distinction is made between manufacturer’s brands, retail brands, house brands and
private labels /own-brand products. In the case of manufacturer’s brands, the brand is
created by the manufacturer. In the case of the other labels, it is created by the retailer.
Retail brands, house brands and private labels are often regarded as synonyms. While
house brands and private labels / own brands are typically associated with an indi­­vidual
retail company, retail brands may also be created by large retail groups. The sales brands
of ­METRO GROUP offer both manufacturer’s brands and private labels. Examples of
­METRO GROUP’s own brands include Horeca Select (METRO Cash & Carry), KOENIC
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GLOSSARY / Brand protection
(Media Markt and Saturn) and real,- QUALITY (Real). Examples of private labels or retail
brands outside ­METRO GROUP include Tandil (Aldi), gut & günstig (Edeka) and ja! (Rewe).
BRAND PROTECTION Legal protection against the illegal use of brand labels, unfair
competition and brand piracy. Brand name manufacturers can incur substantial financial
and image losses from counterfeit or imitation of their brand products if organised product pirates use their well-known brand names to promote counterfeit merchandise. Apart
from luxury items such as designer watches and leather goods, technical products such
as automotive spare parts, food, consumer goods and pharmaceutical products are increasingly being targeted by pirates. The legal basis for German brand rights is the Brand
Law. It derives from the First Directive of the Commission for Standardisation of the
Legal Regulations of the Member States on Brands (89/104/EEC), which the Council of
Ministers of the European Union adopted on 21 December 1988. The Brand Law replaced
the German Trademark Law, which dated back to 1874. This went hand-in-hand with
the abolition of the German term “Warenzeichen” (trademark) in favour of the current
designation of “Marke” (brand).
BREADTH OF PRODUCT RANGE The variety of the products and product lines stocked.
BSCI (BUSINESS SOCIAL COMPLIANCE INITIATIVE) BSCI brings together European
retailers. It was founded in 2003 by more than 100 companies, including M
­ ETRO GROUP.
The aim of the initiative is to safeguard and monitor compliance with minimum social
standards during the product manufacturing process in all supplier countries within the
context of corporate responsibility. The initiative’s work is based on the United Nations’
Universal Declaration of Human Rights and conventions issued by the International
Labour Organization (ILO). For instance, companies pledge to solely cooperate with suppliers who abide by all of the relevant country’s applicable laws and to comply with rules
designed to prevent discrimination, ensure acceptable wages and working hours and
stamp out both child labour and forced labour.
BUDGETING IN RETAIL Budgets are short-term financial plans. In the retail sector, a
budget states the financial resources available for a certain corporate function during a
set period, such as the funds for the procurement of certain commodities in purchasing. Budgeting comprises all concepts and tools for planning and controlling financial
balance sheets. For this purpose, retail companies resort to historical variables such as
sales figures as well as estimates of future demand. See also demand assessment.
BUSINESS FOR OWN ACCOUNT The sale of merchandise and products in one’s own
name and for one’s own account. Example: the head office of a retail company imports
merchandise and pays for it, distributes it to the outlets and promotes sales through
centrally controlled retail marketing. If the merchandise is not sold or sold below the
landed price, the loss will be borne by the individual store, not by the supplier or an
intermediate importer. Conversely, the retail company may also retain all income rather
than share profits with the supplier. Business for own account is a main characteristic of
merchants (cf. § 1 II no. 7 HGB = German Commercial Code) in contrast to a commercial
agent.
BUSINESS FOR THIRD PARTY ACCOUNT Transactions of the procurement centre of
a purchasing cooperative or a wholesaler in the name of a third party and for its own
account or the account of a third party. The buyers of the merchandise are the member
companies of the cooperative or the commissioning retailers. For example, a commercial
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / CAMPAIGN MANAGEMENT
agent may present the fashion collection of an Italian brand in his rooms, which interested
retailers may order from him for sale to consumers in their own stores. The retailers
settle their bills with the manufacturer of the branded product. The commercial agent
receives a commission for acting as intermediary. The opposite term is business for own
account.
BUSINESS-TO-BUSINESS (B2B) The sale of goods and services to commercial customers rather than consumers (business-to-consumer, B2C). The merchandising concept of METRO Cash & Carry (cash-and-carry) is based on the B2B approach because it
targets only commercial and industrial customers such as restaurants and retailers.
BUSINESS-TO-CONSUMER (B2C) B2C refers to the sale of goods to consumers. See
also business-to-business (B2B) for commercial customers. At ­METRO GROUP, the
sales brands Media Markt, Saturn, Redcoon and Real use this business model.
BUYER STRUCTURE Composition of the population or a defined customer category of
a retail company in a defined region. The buyer structure is defined by means of different
variables such as buying power, age structure, household size, level of education or income. These data are collected by market research (panels, customer surveys, etc.). The
buyer structure is an important factor in the positioning and strategic planning of a company. Based on the knowledge of the buyer structure, a retail company will, for example,
establish its purchasing or its category management.
BUYING POWER INDICES These indices provide information on the regional distribution of the income-driven potential demand of final consumers in consumer goods markets. In conjunction with regional population statistics, they provide quantitative data for
assessments of local demand for consumable goods and consumer durables that are
sold through retail and service companies. Buying power indices are determined by market research institutes such as GfK in Nuremberg at annual intervals and show whether
the trend in a certain region is above or below the buying power average in Germany, represented by the value mark 100. Retail and wholesale companies such as M
­ ETRO GROUP
use buying power indices, for example, to decide on the location of new stores.
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CAMPAIGN MANAGEMENT The efficient planning and implementation of marketing promotions. The objective is to boost merchandise sales of an individual product
or across the board and to promote customer loyalty. To accomplish this goal, retail
companies employ marketing activities such as discounts or bonus point systems conducted as part of customer card programmes (see also customer card and Payback).
­METRO GROUP uses a four-step process in campaign management. In the first phase,
the marketing experts of the sales brands develop a marketing strategy and set the
general tone of a campaign. In the second phase, they define the target group and the
offer that will be made to customers. In the third phase, the target group is approached
through strategically determined communication channels and the campaign rollout.
In the last phase, the success of the campaign is measured. Improvements for the first
phase of the next campaigns can be deduced from the results (“closed-loop CRM”). See
also customer relationship management (CRM).
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GLOSSARY / Capital goods
CAPITAL GOODS The term “goods” usually covers both merchandise and services. Capital goods are industrial products that can be regarded as technically complete and thus
ready for acquisition. They are generally acquired by private companies or governments
as fixed capital assets. Goods are regarded as complete when they will not be subjected
to further treatment and are intended for final use. Examples of capital goods in retail
are store fixtures, scales, checkout counters and shopping carts. Capital goods serve as
resources for production and are not destined for resale to end consumers. Consumer
goods, by contrast, are products for direct consumption in private households, such as
food and luxury goods (e.g., bread and cigarettes) or clothing and furniture. Thus, the
typical characteristics that distinguish capital goods from consumer goods are the type of
purchaser (companies or state vs. consumer) and the use of the product (output gener­
ation vs. private consumption).
CAPITAL MARKET ORIENTATION (OF RETAIL COMPANIES) Listed retail companies
raise the funds they need to operate and expand their business on the capital markets,
for example, by issuing shares. They seek to increase their company’s capital market
value to boost their attractiveness for investors and encourage them to buy and/or hold
their shares. ­METRO GROUP is a listed company whose activities and communications
are therefore capital market-oriented. See also initial public offering (IPO).
CARD PAYMENT SYSTEMS A comprehensive term for systems allowing consumers to
pay for a purchase with a card – debit or credit card – instead of cash. For example, the
Payback card may be equipped with a credit card function, allowing customers to use it
as a means of payment.
CARTEL A contractual joint venture of companies of the same industry which remain
independent in both legal and economic terms and only agree on joint action in certain
areas. The typical purpose of cartels is to restrict competition in order to boost the earnings of the cartel members. There are several kinds of cartels:
>> Price cartels require their members to maintain fixed prices.
>> Condition-based cartels create uniform sales conditions such as terms of payment,
discounts and rebates (e.g., standard terms and conditions of the German textile industry).
>> Production cartels determine the permissible output of each member in order to cap
overall supply.
>> Regional cartels prescribe that certain sales regions may only be supplied by certain
members.
Because they restrict free competition to the disadvantage of other market participants,
cartels are banned under Germany’s Act Against Restraints of Competition. The German Federal Cartel Office is entrusted with monitoring compliance with this law. In the
European Union, cartels are also prohibited pursuant to Article 81 of the EC Treaty. The
European Commission may ban cartel-like agreements and fine or charge companies
infringing European competition law with other sanctions. Under certain circumstances,
the European Commission may grant exceptional permits. On an international level, the
International Competition Network (ICN) seeks to foster fair competition and notify the
competent national or European authorities of competition-constraining behaviour. ICN
is a project-oriented informal network of worldwide competition monitoring authorities
based on consensus. The members also include the office of the chairman of the European Commission’s competition directorate. The ICN does not have statutory powers and
may only issue recommendations.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Collaborative planning, forecasting and replenishment (CPFR)
CASH-AND-CARRY A form of wholesaling in which customers pick the products they
need from a wide-ranging assortment in a market, pay for them and then carry them
away according to the self-service principle. The offer is available only to professional
customers and bulk consumers, such as hospitals. The ­METRO GROUP sales line
METRO Cash & Carry is a leading international player in this segment. Depending on the
selling space, the assortment of METRO Cash & Carry comprises up to 20,000 food and
30,000 non-food articles.
CATEGORY MANAGEMENT The aim of category management is to consistently optimise
the assortment in line with customer desires and requirements. Category management
is a joint planning process conducted by the producer and the retailer. The objective is to
define merchandise groups – also called categories – and to optimally place and present
them in the store. Category managers rely on a variety of data, including internal company information and studies conducted by marketing research institutes. These studies
shed some light on which products consumers buy at which retailers. Such information
serves as a major decision-making tool for the category manager and his partners in the
effort to define customer groups, determine categories, devise sales strategies and optimise the assortment. Working on the basis of specifically customer-oriented assortment
strategies, category management helps boost sales and earnings, secures a competitive
edge and enhances long-term customer retention. The category management process at
­METRO GROUP is the strategic starting point for purchasing-related decisions, for ex­
ample, supplier selection, product and brand decisions or unit sizes. Category management and purchasing are handled by the same team at ­METRO GROUP.
CENTRAL WAREHOUSE Warehousing facility shared by several outlets and/or sales
brands of a retail company at one location. In retail, the question of central or decentralised warehousing depends on a number of aspects. Advantages of central warehouses
include lower space costs at peripheral locations as well as the pooling and control of
flows of goods. This contrasts with the costs of warehousing and merchandise distribution to the outlets. An intensification of electronic data interchange with the industry
leads to lower process costs and allows for a reduction of inventory in central warehouses. At ­METRO GROUP, the logistics company METRO LOGISTICS is responsible for
inventory management and distribution in Germany. It operates two central warehouses
for non-food articles, a logistics centre for fresh fish and meat and centrally processes
assortments at ten other locations.
CHAIN STORE COMPANY A retail company that operates sales outlets (chain stores)
at different locations under a central management. A distinction is made between small
chain store companies that maintain up to ten outlets and large multiples. The latter
operate several hundred – sometimes even more than 1,000 – outlets. They operate
nationwide and frequently also internationally. Over the past years, chain store com­
panies have substantially grown in importance. Their characteristic feature is a basic
concept multiplied in a number of outlets. With its sales line Real, M
­ ETRO GROUP also
benefits from the synergies and economies of scale of the chain store structure.
COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT (CPFR) This
stands for an innovative, internet-based process that optimises information and merchan­
dise streams between producers and retail companies as well as inventory control.
CPFR was developed in the United States at the end of the 1990s by the Voluntary Interindustry Commerce Standards Association (VICS), a federation of international industrial,
trade, retail, consulting and IT companies. The CPFR process comprises three phases:
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GLOSSARY / COMMERCE-BASED ECONOMY
planning, forecasting and replenishment. In the planning phase, retailers and producers
stipulate the rules of their partnership. They agree on a business plan that sets goals and
assigns tasks to the process participants. In the forecasting phase, the partners work
together to predict sales and order quantity as precisely as possible. In the process, they
study past sales statistics and consider future-related information such as planned advertising campaigns. In the replenishment phase, they place binding orders for merchandise and plan its storage.
COMMERCE-BASED ECONOMY A type of economy in which the trade and retail of goods
and services is the main source of value creation – in contrast to industrial so­cieties,
which are based on production. In Germany, about 70 per cent of economic value is
­generated in the tertiary sector (trade, retail and service industries, including hotels/­
caterers and transport).
COMMERCIAL AGENT Pursuant to § 84 Section 1 of the German Commercial Code
(HGB), a commercial agent is an independent trader who brokers or concludes business
transactions in the interests of and on behalf of another businessperson. See also busi­
ness for own account. Example: a commercial agent displays the brand collections of
foreign manufacturers at his or her premises to enable retail companies to place orders
with him or her for the goods. The commercial agent serves as an intermediary – when
delivered, the goods come straight from the brand producer. Similarly, payment is made
directly to the brand producer. The commercial agent receives a commission for his or
her brokering services.
COMPETENCE LEADERSHIP Refers to a company’s leadership over its competitors
in a specific area. A retail company may, for example, be the competence leader in the
develop­ment and adjustment of customer-oriented merchandising concepts. Or in logistics: through the continuous improvement of work flows along the value chain, a retail
company may design its logistics processes more efficiently than its competitors. A retail
company may also hold competence leadership with regard to the composition of its
­merchandise portfolio or staff qualifications.
COMPLAINT MANAGEMENT This is defined as the integral, organised management of
customer complaints, whereby customer complaints are registered and analysed. The
evaluation of these analyses constitutes the basis for planning, implementing and controlling preventive measures. Efficient complaint management is a prerequisite for customer satisfaction in the retail sector. Complaints about long queues at checkout points,
for example, may cause a company to introduce more checkout points or faster checkout
systems.
COMPLIANCE All measures taken to ensure that a company and its employees comply
with legal requirements, social guidelines and ethical standards as well as internal company regulations. Its aim is to prevent the company from incurring material and intangible damage caused, for example, by corruption. Compliance is enshrined as a fixed
requirement in the German Corporate Governance Code (corporate governance).
CONCEPT LEADERSHIP Individual merchandising concept that gives a retail company
a distinct image on the market. By continually fine-tuning the concept, companies strive
to achieve concept leadership in respective market segments.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Consumer confidence
CONCEPT OPTIMISATION Must be carried out continuously by a retail company. Following the guiding principles of “customer orientation” and “increase in profits”, the
objectives are to continually increase the efficiency of business processes, improve and
modernise the outlet chain, adapt stores to innovative marketing concepts and intensify
customer retention measures. Another task involves initiatives for improving individualised communications with customers.
CONCESSION A licence granted by local authorities to operate a business for a limited
period of time. Also: a special right to use public property, for example, a waterway or a
street. Streets in pedestrian zones are public property. Retail companies, for instance,
have to obtain a special permit or concession for street selling, which involves setting up
sales booths etc.
CONCESSIONAIRE Holder of a concession. In retail, this is the contract counterpart of
a retail company renting, for example, part of the total floor space of a department store,
in which it operates its business independently. The concession area is typically separated from the rest of the sales area by elements such as walls and separate entrances. The
concessionaire uses a separate checkout area in the concession area for paying the merchandise or services. The receipt does not state the name of the retail company but that
of the concessionaire. The shop-in-shop concept is an exception to this rule.
CONSUMABLE GOODS These are goods that, unlike consumer durables, cannot be
reused, but are characterised by having a relatively short useful life. In the category consumer goods these are items such as food or hygiene articles. In the industry, consum­
able goods are also used in the production process (production goods). They can be used
during the manufacture of a product and cannot be reused (e.g., varnish).
CONSUMER A consumer is anyone who enters into a contract – for instance, a purchase
contract – with a company but acts as a private person and does not represent com­
mercial interests. As consumers are, relatively speaking, generally in a weaker commercial
position when they make a legal transaction with a company, the European legislature
considers that consumers require special protection. See consumer protection.
CONSUMER BEHAVIOUR The day-to-day purchasing decisions of consumers
expressed by:
1.The choice of store (e.g., supermarket, superstore, speciality store or single-line
retail);
2.The frequency (daily, weekly, monthly, etc.) and time of shopping (after work, during the
day);
3.The selection of preferred products, quality and brands (manufacturer’s brand or
trademark);
4.The degree of rationality in the decision to buy (impulse buying or planned buying
(must-have items));
5.The profile of the buyer (which member of a household does the shopping?).
CONSUMER CONFIDENCE Provides information about the mood and willingness of consumers to spend money and buy goods and services, for example, from retail companies.
Consumer confidence is subject to heavy fluctuation over time. It is essentially influenced
by a country’s economic cycle, by the price trends, the development of wages and salaries
as well as political decisions and events. In order to identify changes in consumer confidence, market and opinion research institutes conduct consumer surveys.
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GLOSSARY / Consumer cooperatives
CONSUMER COOPERATIVES Pursuant to § 5 of the German Cooperatives Act, consumer cooperatives are “associations for the joint wholesale buying of food or economic
necessaries and retail delivery (consumer associations)”. In this context, delivery means
sale. Originally, the activity of consumer cooperatives was restricted to passing on the
goods acquired on a wholesale basis only to their members, who benefited from favour­
able prices and conditions. Since the abolition of the so-called identity principle, they may
also sell their goods to non-members. The tradition of consumer cooperatives in Germany dates back to the 19th century. Before the country’s two halves united in 1990, the
stores of the consumer cooperatives in West Germany traded under the name “Konsum”
and then “Coop”. In the German Democratic Republic, “Konsum” was the second largest
retail company. The consumer cooperatives are associated in Konsumverband eG, Berlin,
and Zentralverband deutscher Konsumgenossenschaften e. V. (central organisation of
consumer cooperatives), Hamburg.
CONSUMER DURABLES Unlike consumable goods, consumer durables are intended
for longer-term use. Consumer durables can be both consumer goods for private consumption (e.g., household appliances) as well as production goods for industrial use
(e.g., machinery). In industry, consumer durables are usually used for the production of
other goods.
CONSUMER GOODS In contrast to production goods, these are intended exclusively for
the end consumer; in other words, they are goods that are for private, not commercial,
use. The use of consumer goods, therefore, does not generate any economic value
added. For some goods, it does not become clear whether it is a consumer or production
good until it is actually used. For instance, flour can be used by a bakery as a production
good or in a private household as a consumer good. See also consumer durables.
CONSUMER GOODS FORUM (CGF) An independent, parity-based network of the consumer goods industry. It brings together CEOs and other top executives from approximately 400 retail, industry and service companies along with other stakeholders from a
total of 70 countries. The forum was created in June 2009 by the merger of CIES – The
Food Business Forum, the Global Commerce Initiative (GCI) and the Global CEO Forum.
Its task is to develop joint positions on strategic and practical issues that affect the
consumer goods industry and to optimise non-competitive collaborative processes.
Its five priorities are sustainability, food safety, health & wellness, end-to-end value
chain & standards, and knowledge and best practice sharing. See also best practice
principle.
CONSUMER GOODS WHOLESALE TRADE Consumer goods trade includes the wholesale sectors that primarily supply goods for private consumption to retail businesses
and the service industry, such as hotels and the food service industry. See also industrial
B2B trade.
CONSUMER PANEL A panel based on regular surveys of households (household panel)
or individuals (individual panel). The household panel is a random check of private households (panel households), which continuously records their purchases (e.g., classified by
product or brand). On this basis, a market research institute can infer the shopping and
consumption behaviour of the household and identify changes in areas such as brand
loyalty and shop loyalty. With the aid of individual panels, information is gathered on the
shopping and consumption behaviour of individuals considered representative of a certain target group. The results of the consumer panel provide retail companies with basic
information for their strategic assortment policy. See also retail panel.
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GLOSSARY / Corporate governance
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CONSUMER PRICE INDEX (CPI) A key figure that reflects the change in the price of
consumer goods in comparison to a chosen base year. To determine the change in price
levels, a basket of consumer goods is taken as a reference. This currently comprises
about 750 products and services and is recalculated every month by the German Federal
Statistical Office. The consumer price index is an important measure of orientation in
retail companies’ price policy.
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CONSUMER PRICES See consumer price index.
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CONSUMER PROTECTION Measures to safeguard the health and safety as well as the
economic interests of consumers. The foundations for consumer policy were laid by US
President John F. Kennedy in a speech to Congress. He declared the consumer’s right to
safety, to information, to choose and to be heard. Consumer protection is based on legal
regulations which strengthen the market position of consumers. The European Union
substantially extended consumer rights in the 1980s and 1990s. In the German federal
state of Berlin, for example, a law was adopted in 2003 governing the consumer’s right
to information in the food sector. Moreover, consumer organisations such as German
consumer centres provide information. Internationally leading retail and wholesale companies like ­METRO GROUP, which are aware of their responsibility for consumer health,
have their own quality assurance bodies. These are designed to improve food safety and
ensure that only flawless and high-quality products are delivered to their stores.
CONSUMER RESEARCH Research of purchasing and consumer behaviour. Consumer
research includes, for example, readership research, panels and test market investigations as well as consumer statistics. The main areas of consumer research include
information behaviour, buying decisions, follow-up buying and changing values. The
­results of consumer research provide retail companies with information about the needs
and preferences of their customers and supply basic material for strategic corporate
manage­ment.
CONVENIENCE STORE An organisational form that is characterised by a limited assortment of commodities for everyday use as well as a service offering that may even
include gastronomy. These stores’ business hours frequently exceed standard store
opening hours. Price levels tend to be high. Typical convenience stores include petrol
station shops or neighbourhood stores.
CORPORATE GOVERNANCE A set of standards for managing large corporations and
monitoring their corporate behaviour. In Germany, all essential legal provisions that
govern the management and control of listed companies are summarised in the German
Corporate Governance Code. The code also contains nationally and internationally recognised standards for responsible corporate management. It is intended to render the German corporate governance system transparent and comprehensible. In its provisions and
recommendations for good corporate governance, the German Corporate Governance
Code addresses the following topics:
1.Shareholder rights as well as duties and responsibilities relating to the general
meeting,
2.Cooperation of the management board and the supervisory board,
3.Duties and responsibilities of the management board, its composition and remuner­
ation, and handling conflicts of interest,
4.Duties and responsibilities of the supervisory board, the tasks and authority of its
chairman, formation of committees, board composition and remuneration, the handling of conflicts of interest, assessing the efficiency of the supervisory board,
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5.Transparency,
6.Accounting and auditing of financial statements.
CORPORATE RESPONSIBILITY (CR) The term CR (also CSR, corporate social responsibility) is used to describe a company’s voluntary activities to foster ecologically and socially responsible development that go beyond legal requirements (compliance). CR relates to a responsible approach to business within a company’s normal operations (core
line of business). In practice, CR activities can comprise a company’s commitment to
protect the climate and preserve resources, promote eco-friendly and ethical products, or
provide its own employees with good working conditions. Maintaining dialogue with relevant stakeholders is also part of CR. For ­METRO GROUP, CR mainly means safeguarding
the future by taking a socially responsible approach to business. This involves respecting
social and ecological requirements at an early stage both in its business for own account
and throughout its supply chains and in its economic decision-making. ­METRO GROUP
documents its diversity of activities in corporate responsibility in its Corporate Responsibility (sustainability) and Annual Reports. ­METRO GROUP also founded a Sustainability
Board in 2009, which helps anchor sustainable business management in the corporate
strategy and ensure that corresponding goals are achieved.
CORPORATE STRATEGY (GROUP STRATEGY) Consists of three elements:
>> the clear formulation of the entire group’s strategic goal (strategic goal formulation);
>> the description of the ways to achieve the goal; and
>> the specification of the resources needed to implement the strategy.
The business goals of ­METRO GROUP’s sales brands METRO and MAKRO Cash & Carry,
Media Markt, Saturn, Redcoon and Real are formulated in accordance with the group’s
strategy. The strategic focal points transform, grow, improve, expand and innovate lend
a shared identity and a shared direction to the company – creating added value for the
customers (customer value) and achieving a sustained positive sales and earnings
development.
COST OF LIVING INDEX See consumer price index.
COST STRUCTURE Breaks down the costs of a company, an industry sector or an economic sector and displays the relationship of these costs to the whole. Large cost blocks
in retail are, for example, procurement costs, personnel expenses and leasing costs. The
analysis of the cost structure reveals in which areas of the value chain retail companies
have additional room to cut costs and increase efficiency.
COUNTRY OF ORIGIN LABEL A product name or packaging information providing information about the geographical origin of a product. For example, the origin label “Rioja”
for Spanish wines from the region La Rioja, “Parma ham” for ham from Parma in Italy
or the labelling of beef to document where an animal was born, raised, slaughtered and
carved. Some labels that originally only denoted the geographical origin have over time
come to represent product categories (e.g., Pilsner beer, Eau de Cologne).
COUNTRY SCORING Method used by retail companies to examine selected countries for
their suitability for market entry.
CROSS-DOCKING A merchandise distribution system that does not require inventory in
the distribution centre. The manufacturer puts together the goods ordered by a retailer (see
also order picking) and delivers them to the retailer’s distribution centre. The merchandise
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Customer card
is accepted there and is immediately shipped to the stores. There are two different kinds of
cross-docking: in the first form, the so-called pre-allocated cross-docking, the stores
of a retail company independently send their orders to the manufacturer. The manu­
facturer then places the individual orders on pallets and generates a delivery notice and
an invoice for each store. Then, the manufacturer – or, in the case of M
­ ETRO GROUP,
the logistics partners of METRO LOGISTICS – delivers the goods to the retailer’s distribution centre, from where they are shipped to the stores without further repackaging.
In the second form, the retailer collects the orders of his individual outlets and sends
a combined request to the manufacturer, who treats it as one mass order. He packs all
of the merchan­dise onto pallets without sorting it by individual outlet. The manufacturer delivers the merchandise to the retailer’s distribution centre, where it is broken
down for the individual stores (known as break-bulk cross-docking) and then delivered.
Cross-docking e
­ nables manufacturers and retail companies to cut transport and
handling costs. More­over, faster supplies to stores improve the availability of goods.
The need for storage capacity is reduced because less storage space is needed. The
­METRO GROUP sales brand METRO Cash & Carry has been using cross-docking for its
fresh produce since 1996 and for fish since 1997, thereby substantially reducing warehouse management and logistics costs.
CROSS-SELLING Cross-selling means actively offering products that complement customers’ shopping but for which demand has not yet been registered. For example, the
staff at the cheese counter could draw customers’ attention to a wine that is currently on
offer and pairs well with the cheese they have purchased. Cross-selling serves to boost
sales and customer retention. It is also an effective way of linking the main product
ranges with marginal goods. See also upselling.
CUSTOMER CARD A card issued in the customer’s name, typically in a credit card format, that may provide special benefits. The following three types of customer cards exist:
1.Cards issued by an individual store;
2.Regional or local cards issued jointly by several retailers or their advertising pool;
3.Multi-partner cards managed by specialist service providers for members. These joint
cards are distributed and promoted by a central body (loyalty scheme provider) on a crosschannel, multimedia basis for companies such as retailers, wholesalers, service providers and online businesses throughout Germany. This group includes the Payback card.
Customer cards may offer various advantages to their holders:
1.They reward customer loyalty. Customer cards are usually most attractive for regular
customers because it can be assumed that they have a strong link with the card-issuing
company. The cardholder’s purchases are registered with the customer’s written consent. On the basis of these data, the customer receives specific information about the
companies within the scheme and individual buying incentives.
2.The cards can replace discount stamp booklets. The customer collects points that
he or she may exchange for cash or other premiums directly from the programme
partners, convert into frequent-flyer points or donate to charities. As an alternative to
collecting points, some companies offer customers direct discounts depending on the
purchase volume.
3.Customer cards can also have a credit card function and be used by customers as a
means of payment instead of their usual debit or credit card. Customer cards enable
retail companies to keep better track of consumer behaviour, wishes and expectations
in order to meet the customer’s needs more precisely within the scope of customer relationship management (CRM). Companies frequently offer cardholders special conditions and extra services, thus binding the customer to the company (see also customer
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GLOSSARY / Customer groups
retention). Among other companies, the ­METRO GROUP sales line Real participates in
the Payback programme, the market-leading customer card programme in Germany,
which is administered by the service provider Payback GmbH.
CUSTOMER GROUPS Classification and subdivision of a company’s customers into differ­
ent groups. This involves defining various socio-demographic delineation criteria, such
as age, sex, income and interests. On the basis of these groups, a company can identify
its buyer structure and correspondingly adjust its marketing. The customer groups also
play an important role, however, in drawing up the product assortment. Examples of customer groups would be best agers, smart shoppers and hybrid customers.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) A general term that describes
all marketing activities that foster and strengthen customer retention. CRM is an
important module for long-term success in the retail sector. On the one hand, CRM
aims to optimise existing customer relationships on the basis of a data pool (see also
data warehouse) and to establish new customer contacts. On the other hand, it is also
designed to improve the efficiency of steps in the sales process. Typical CRM activ­
ities include direct marketing or cross-selling. In this context, customer retention
programmes like the successful Payback loyalty scheme, in which the M
­ ETRO GROUP
sales line Real participates, are of great importance.
CUSTOMER RETENTION Strategies and initiatives to safeguard permanent customer
loyalty to a retail company. In this way, the company improves the satisfaction and retention of customers. At the same time, retailers gain better knowledge of their customers
and can thus attend more precisely to their individual needs and desires. Examples
of successful customer retention activities are the customer card (see also Payback)
and services such as ordering and delivery services. See also customer relationship
manage­ment (CRM).
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DATA WAREHOUSE A computer-assisted information tool that provides a general overview of the state of a company at all times. The data warehouse links up records from
operational systems within the company and facilitates comprehensive analyses by offer­
ing quick access to focused and structured information. These data facilitate strategic
management decisions. ­METRO GROUP’s data warehouse links up key data of the sales
lines METRO Cash & Carry and Real. Using it has considerably boosted the efficiency of
various process flows.
DEMAND The consumer’s wish to purchase a certain product or use a service. In market
economies, the price of products and services is determined by supply and demand. The
lower the price of a product, the higher is its demand, and vice versa. The revenue of a
retail company depends on consumers’ demand for goods in its assortment. Retail companies often strive to boost demand using special offers and sales promotions.
DEMAND ASSESSMENT Retail companies use demand assessments to determine what
types and quantities of goods and services they must stock for their customers and at
what times. For this purpose they draw both on historical data, such as demand for a
type of beverage during a defined period, and on estimates of future demand, for example,
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GLOSSARY / Direct marketing
cance of such a trend for the demand behaviour of their own customers and gauge likely
demand on this basis. Typical tools and data supporting demand assessments are retail
panels, sales statistics and market research results. Demand can also be assessed on
the basis of sales talks. Here, sales staff uses specific interview techniques to determine
customer needs (demand) in order to be able to stock the suitable merchandise.
DEPARTMENT STORE, “KAUFHAUS” TYPE A stationary retail format offering merchan­
dise from two or more industry sectors on a comparatively large sales area, including at
least one industry sector with a broad and deep assortment (see also breadth of product
range and depth of product range). Textile and clothing stores are the most widespread
form of department stores of the “Kaufhaus” type. There are two German terms for department store: “Kaufhaus” and “Warenhaus” (department store, “Warenhaus” type),
which are often used as synonyms. A distinction between the two terms was originally
made for tax policy reasons. A “Warenhaus” had to offer four large merchandise groups
and a food department. Consumers are frequently more favourably disposed toward the
term “Warenhaus”, which they associate with such famous upmarket stores as Galeries
Lafayette (Paris) or Harrods (London).
DEPARTMENT STORE, “WARENHAUS” TYPE A large-scale retail store in a central location with a wide assortment, above all in clothing, textiles, household appliances, daily
necessities and food, including restaurants. According to the official statistics, a selling
space of at least 3,000 square metres is required. In German, the department store terms
“Warenhaus” and “Kaufhaus” (department store, “Kaufhaus” Type) are often used as
synonyms. The term “Warenhaus” has a more positive image as the customer frequently
attributes to it famous department stores like Galeries Lafayette in Paris or Harrods in
London.
DEPTH OF PRODUCT RANGE The amount of choice within a stocked product line. These
choices include different brands, sizes, colours, qualities, flavours, weights, designs and
packaging.
DER GRÜNE PUNKT – DUALES SYSTEM DEUTSCHLAND GMBH A privately organised German waste management system for packaging materials identified by the socalled Green Dot. On behalf of industry and retail, Der grüne Punkt – Duales System
Deutschland GmbH handles companies’ disposal and recycling obligations. In exchange,
companies pay licence fees. The disposal regulations governing sectors such as retail
and industry as originators of packaging garbage are laid down in the German Packaging
Ordinance of 1991 as amended in 2009.
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DIGITAL IN-STORE COMMUNICATION Digital communication on the sales floor. Also
known as digital signage. An innovative form of customer communication using digital
media, which is enjoying increasing popularity in modern retail formats. Digital in-store
communication is divided into different applications of digital media: customer guidance
systems, advertising, customer information, kiosk systems and in-store ambience. These
systems can be supplied with content either centrally or locally and require corresponding infrastructure. See also in-store media.
DIRECT MARKETING A distribution channel (sales channel) where customers do not
buy merchandise in a retail store, but order goods directly from the producer, who also
delivers these goods to the consumer, for example, via the internet or through catalogue
sales. See also mail-order business.
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DIRECT STORE DELIVERY (DSD) Orders are individually packed at the manufacturer’s
facility for each store and directly shipped there. This eliminates the need for storing the
goods in the retail company’s central warehouses. See also cross-docking.
DISCOUNT A percentage reduction on the invoiced price upon payment within a specified
time frame. From an economic point of view, the term “discount” describes the interest
rate for the loan which a supplier grants to his customers by advance financing and/or
granting a payment period. If the customer pays before the end of this period, he can deduct
a discount which is scaled by time periods. For example: a purchase price is payable
within three months net, within one month with a two per cent discount or within ten days
with a three per cent discount. A discount granted on immediate payment is also referred
to as a cash payment discount.
DISCOUNTED MASS DISTRIBUTION A sales policy strategy according to which mass
consumer goods are offered through clearly defined ranges and stores in a simple setting
(discounter) and at favourable prices.
DISCOUNTER An organisational form in retail characterised by a very limited range of
goods with a high turnover frequency. The presentation of the merchandise is simple,
and it is sold on the basis of an aggressive low price policy. In return, customers in most
cases have to forego advice and service. Discounters are widespread in the food retail
sector. Their sales areas are usually under 1,000 square metres.
DISTANCE RETAIL The purchase and sale of merchandise over a certain distance. Customers do not view the merchandise at the point of sale (POS), but order products from
a catalogue, online or based on a sample. The merchandise is delivered directly to the
customer who can pay cash on delivery, by credit card, automatic debit or bank transfer.
See also mail-order business and e-commerce.
DISTRIBUTION The distribution, planning and monitoring of activities related to the
route of a product from the producer to the consumer. In the retail sector, distribution is
closely related to logistics and inventory management.
DISTRIBUTION CHANNEL See sales channel.
DIVERSIFICATION The extension of a company’s performance range to areas it had previ­
ously not covered. For example, a retail company may diversify by adding new products to
its product range (e.g., a textile retailer adding shoes to its range) or through upstream
integration (e.g., a textile retailer opens up its own production facilities and becomes a
producer). This is called collateral diversification because a relationship exists between
the new and the old lines. However, a retail company may also diversify beyond its own
line (e.g., a food retailer might also offer insurance brokerage). This is known as lateral
diversification. Increased competition and stagnant markets cause companies to look
for growth beyond their traditional product and/or consumer groups by diversifying their
range of services.
DIVIDEND The portion of the balance sheet profit which is paid out to the shareholders
in a stock corporation or to the members of a cooperative (dividend payout). The dividend
amount is determined by the annual general meeting, usually on the basis of a proposal
made by the management board.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / E-BUSINESS
DOMESTIC TRADE The procurement and/or sale of goods and services within the
national borders of a state. The term “domestic trade” denotes the purchase and sale
of goods in the home country as well as the entirety of companies conducting domestic
trade. See also foreign trade and retail.
DOMESTIC WHOLESALE TRADE A specific form of wholesale with a focus on business
within the customs area of a country. Domestic wholesale trade cooperates with domestic
market partners in both procurement and sales. These partners may also be importers.
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EAN-128 CODE See GS1-128 code.
EAN BARCODE EAN stands for European Article Number. A standardised, internationally
valid and non-overlapping 8-or-13-digit article number for products and services; also
called GTIN (Global Trade Item Number). The EAN barcode is the underlying informational standard for barcode scanning systems and greatly accelerates electronic data
processing. Main areas of use in the retail industry include merchandise logistics, inven­
tory management and billing goods at the store checkout. The code enables retailers to
clearly identify an article at every point of the supply chain.
EAN CODE See EAN barcode.
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EAN STANDARDS See GS1 standards.
EBIT (EARNINGS BEFORE INTEREST AND TAXES) Serves as the basis for international
comparisons of companies.
EBIT AFTER COST OF CAPITAL (EBITAC) A benchmark for the economic success of a
company. The following formula is used to calculate EBITaC: EBITaC = EBIT – capital cost
or EBITaC = EBIT – (capital employed × weighted average cost of capital). This means that
EBITaC is positive when the earnings before interest and taxes (EBIT) are higher than the
cost of financing the capital employed. To determine the cost of capital, the capital employed is multiplied by the weighted average cost of capital (WACC) which results from
the weighted average of equity and borrowed capital employed. The business assets are
the interest-bearing assets. They are made up of segment assets plus cash flow from
operations minus trade liabilities and deferred income. The EBITaC indicator is similar
to economic value added (EVA) but is based on pre-tax figures. To ensure standardised
measurement of a company’s performance, absolute value contributions are used.
EBITDA (EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORT­
ISATION) This metric serves as the basis for comparisons between companies using
different accounting standards.
E-BUSINESS Short for electronic business. The term describes all types of internetbased electronic business processes. Electronic business transactions may involve two
companies (business-to-business), companies and consumers (business-to-consumer),
companies and their employees (business-to-employee) or companies and the government (business-to-government). In the retail sector, the internet is used, for example, for
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selling to end consumers (e-shopping, e-commerce) and for the procurement of merchandise (e-procurement) from suppliers. See also request for proposal and auction.
E-COMMERCE Short for electronic commerce. It represents the electronic marketing as
well as the trade and retail of merchandise and services over the internet. It is a form
of e-business. All sales lines of ­METRO GROUP offer their customers online shops. See
also multichannel retailing.
ECONOMIC SECTORS Sectors into which companies of a national economy are allocated
for statistical purposes in line with defined criteria. The essential structural principle
is based on the similarity of their performance. The economic sectors are subdivided
into industry sectors. The German Federal Statistical Office in Wiesbaden, for example,
differentiates between the retail revenue of economic sectors such as retail in motor
vehicles and retail in clothing. ­METRO GROUP is active in the economic sectors of wholesale with food, beverages and tobacco (METRO Cash & Carry), retail in different kinds of
merchandise, main group food (Real), retail in household electronics, radio and TV appliances (Media Markt, Saturn) and mail-order business and e-commerce (Redcoon).
ECONOMIC VALUE ADDED (EVA) Like EBITaC (EBIT after cost of capital), EVA is an
indicator of a company’s economic success that takes the operating result and cost of
capital into account. The main difference between the two is that EVA is an after-tax
­indi­cator, while EBITaC focuses more strongly on balance sheet figures. The latter means
that EBITaC does not use the scope for adjustments included in EVA.
EDI-ANWENDERKREIS HANDEL (USER GROUP RETAILING) A joint user group of
22 retail companies. The key mission of the user group retailing is to bindingly adjust
contents and the technical presentation of EDI messages (electronic data interchange).
The electronic data exchange, which the partners use to accelerate their national and
international business processes, is based on so-called message standards, including
EANCOM® (GS1 standards), an EDI application guideline developed by the organisation
GS1. Many message standards allow for different presentations of specific information,
including the format for the date. The task of the EDI user group retailing is to recognise
such differences and prepare recommendations for standardisation. The group then
passes its recommendations on to GS1 Germany. The German membership organisation
of GS1 ensures their implementation in standardised formats. The EDI user group retailing was founded in 1997 by nine retail companies, including ­METRO GROUP.
EFFICIENT CONSUMER RESPONSE (ECR) ECR describes a holistic approach to the
entire supply chain that considers a customer-oriented offer. ECR focuses on the best
possible response of retail companies to the expectations and needs of customers.
Consumer needs should be met as efficiently as possible. This can only be achieved if
business processes are analysed and optimised throughout the entire value chain, from
suppliers through producers to the retail company and ultimately the consumer. Thanks
to ECR, potential supply gaps, such as imminent out-of-stock situations, can be promptly
recognised and avoided. ECR helps companies fine-tune their inventories in accordance
with actual sales to prevent surplus stocks. Processes along the value chain can be
devised more efficiently on the basis of ECR. This produces time and cost savings and an
improved and comprehensive offer of merchandise for the customers. At ­METRO GROUP,
the ECR approach is implemented within the scope of category manage­ment, among
others.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Electronic product code (EPC)
EFFICIENT UNIT LOADS (EUL) A system that ensures the efficient use of packaging
and transport units such as pallets. Unit loads are efficient only when all components
along the process chain – that is, packaging, pallets, shelves, truck loading space, loading
ramps, receiving/shipping gates and distribution centres – are optimally coordinated.
EUL can help industry and retail substantially reduce logistics costs. The prerequisite
for these savings is the use of so-called EUL standards. They lay down the requirements
for such things as the composition and application of disposable transport packaging.
They should have specific dimensions to optimally use the space on the transport pallet,
in the warehouse or on the store shelf. Specific EUL standards have also been developed for reusable transport items such as pallets, boxes and crates. One example is the
europallet. Moreover, the EUL standards specify the uniform marking of packaging and
transport units. The organisation GS1 Germany published a recommendation for the use
of efficient unit loads in 2002Industrial and retail companies – including M
­ ETRO GROUP –
helped develop these regulations. The group is a pioneer in the implementation of EUL.
ELECTRONIC ARTICLE SURVEILLANCE (EAS) The protection of merchandise from
theft by attaching specific tags. These tags trigger acoustic and/or optical alarm signals
when an active tag passes through the exit gates. The tags are only removed or deactivated when the merchandise is paid for. Embedded in an integral merchandise protection
system, EAS is supposed to prevent theft and manipulation by changing the tags or exchanging the packaging in order to minimise leakage and the resulting inventory differences in retail. There are four main EAS systems in use on the market:
>> Acousto-magnetic technology (AM): local antennae in the exit area emit ultrasonic
vibrations. The hard and/or adhesive tags contain two thin metal plates which are
energised by the antennae and start to vibrate. The security system identifies these
vibrations within the reception range and sets off an alarm.
>> Autoactive technology (AA): active security tags that are equipped with an acoustic
alarm transmitter. They set off an alarm when the tag is tampered with or when somebody tries to remove the tag from the merchandise.
>> Electromagnetic technology (EM): based on the metal detection principle. The elec­tronic
detectors recognise a selected metal and a specific magnetic coding and set off an
alarm.
>> Radio frequency (RF)/radio frequency identification (RFID): transmitting and receiving
antennae generate a spatially restricted radio frequency field. As soon as a secured
product leaves this field through an exit barrier, an alarm goes off.
ELECTRONIC DATA INTERCHANGE (EDI) Data are exchanged electronically between
companies (external exchange) and among individual business units (internal exchange).
EDI can accelerate business processes at national and international level, make them
more transparent and significantly reduce operational costs, for example, for logistics.
Moreover, services and workflows are improved. Seamless communication between producers or suppliers and retail companies is an essential part of an end-to-end ECR
(efficient consumer response) process. EDI enables retailers to substantially enhance
their inventory level while appreciably increasing the availability of goods at the same
time. For years, ­METRO GROUP has been involved in this area and is eager to implement
EDI with its entire supplier portfolio. This provides the opportunity to gain synergies and
optimise the processes at their end.
ELECTRONIC PRODUCT CODE (EPC) A number for the unique identification of individual
articles and shipping units in the process chain. The Electronic Product Code consists
of the article number (EAN barcode) and a serial number. The combination of these two
numbers not only provides key product data – such as the brand name or the manu-
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GLOSSARY / Electronic shelf labelling (ESL)
facturer – but also clearly identifies each article from this manufacturer. This makes it
possible to fully trace the route of the merchandise along the process chain. The carrier
technologies for the EPC include among others radio frequency identification (RFID) or
the two-dimensional barcode standard databar (GS1 DataBar). The EPC is stored on an
RFID transponder or on a databar.
ELECTRONIC SHELF LABELLING (ESL) Price labelling on the store shelves that uses
electronic price displays. Using the wireless local area network, or WLAN, the labelling
is controlled by a price management system that is linked to the checkout network. Price
changes are automatically sent to the displays on the shelf and to the checkout register
at the same time. As a result, the price labels are always up to date and are identical to
the ones at the checkout counter. ­METRO GROUP uses electronic shelf labelling at various METRO Cash & Carry stores (cash-and-carry). Media Markt and Saturn are testing
the use of ESL in particular German stores and plan to install price displays across the
country. In the Netherlands, all Media Markt stores are already working with ESL.
EMERGING MARKETS A term used to describe national economies that are less de­
veloped than industrial countries but feature strong economic momentum and high
growth potential. Among these countries are, for example, China and India, but also
­certain Eastern European countries. Emerging countries are attractive as sales markets,
but are often somewhat unstable and thus harbour heightened economic risks. Therefore, a retail company should carefully weigh the risks and opportunities related to
market entry before expanding into emerging markets.
END CONSUMER See consumer.
ENVIRONMENTAL LABEL Quality seal identifying products whose impact on the environment is minimal or non-existent. The “Blue Angel” environmental label is granted
to companies for their products upon submitting an application to the German Federal
Environmental Office. On application, the institute awarding the label, RAL (originally
Reichsausschuss für Lieferbedingungen), charges a one-time processing fee. RAL (est.
1925) is the German institute for certification and labelling. After a label use contract has
been signed, companies pay an annual contribution to RAL based on the annual sales of
all products carrying the environmental label. In addition, the label users pay a certain
amount to the environmental label advertising fund “Umweltzeichen-Werbefonds” established by RAL. This fund is used to finance public relations campaigns for the Blue Angel.
Meanwhile, the European Union has also created an environmental label, also called the
European Flower, a blossom on a stem with twelve petals in the form of stars.
ENVIRONMENTAL MANAGEMENT A component of company management which
focuses on the impact of business activities on the environment. A major part of a (retail)
company’s corporate responsibility activities. The production, sale and use of food and
other consumer goods are associated with various consequences for the environment.
­METRO GROUP is part of this value chain. It can exert the greatest influence on reducing
or avoiding environmental impact, through the use of energy, resources or emissions at
its own locations. Environmental management at ­METRO GROUP concentrates primarily
on making efficient use of energy and conserving resources, with two primary goals: first,
to reduce emissions associated with the company’s business, and second, to reduce the
use of resources. This also contributes to the reduction of operating costs. The company’s sales brands constantly implement measures to boost energy efficiency, cut energy
consumption and use renewable energies. METRO Cash & Carry started the so-called
Energy Awareness Programme (EAP) in 2013. It aims at motivating em­ployees to use
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Exchange
energy more efficiently. When buying paper, MGA ­METRO GROUP Advertising ensures
that high environmental standards are observed for paper consumption for the purposes
of promotional material. Wherever possible, ­METRO GROUP uses recycled paper and
paper sourced from sustainable forestry and/or chlorine-free production. In financial
year 2013/14, around 89 per cent of the paper bought for promotional purposes complied
with these standards. Since 2011, ­METRO GROUP Annual Reports have been produced
using 100 per cent recycled paper bearing the EU Ecolabel. The 2011 annual report was
also the first annual report worldwide to have been published with the Saphira Eco label,
which guarantees that the consumables used in preparing the report, such as ink, dye,
chemicals and printing plates, meet the requirements of the most important international environmental certification programmes. Both the Corporate Responsibility Report
and this METRO Retail Compendium have fulfilled these requirements since 2011. Waste
generated at the group’s sales outlets is recycled wherever possible or disposed of in
an environmentally friendly manner. In financial year 2013/14, about 69 per cent of the
waste produced worldwide was recycled. ­METRO GROUP publishes key environmental
management figures on a regular basis in its Corporate Responsibility Report. These
include greenhouse gas emissions, energy, coolant, paper and water usage as well as the
amount of waste produced.
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EPCGLOBAL See GS1 EPCglobal.
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ETHNIC PRODUCT RANGE The selection of products through which a retail company
caters to the needs of different ethnic groups as well as to influences of other countries.
For some time now, ­METRO GROUP’s sales brands METRO Cash & Carry and Real have
stocked a range of international products.
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EU-15 MEMBER COUNTRIES The EU-15 member countries include the countries that
joined the European Union before April 2004. These are Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
Spain, Sweden and the United Kingdom.
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EUROCHAMBRES (ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND
INDUSTRY) The umbrella organisation of 45 national chambers of commerce in Europe
and a transnational organisation comprising 1,700 regional and local chambers with
20 million member companies across Europe. The German Chamber of Industry and
Commerce in Berlin is also a member of Eurochambres. The functions of Eurochambres
include representing the interests of the member companies before EU authorities, developing programmes to support the European economy, promoting economic integration
on the European level and maintaining and intensifying trade relations between EU members and non-EU countries.
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EUROPEAN RETAIL ROUND TABLE (ERRT) A working group through which the CEOs
of major European retail companies meet. The goal of the ERRT is to take common pos­
itions, maintain close contact with the EU institutions and contribute to political decision
making at the European level. ­METRO GROUP is the only listed German retail and wholesale company involved in this group, which, in its exchange with institutions, works towards
better parameters to ensure that retailers and consumers – both online and offline – can
enjoy the full benefit of the European Single Market.
EXCHANGE This can be the building where a stock or commodities exchange is located,
or it serves as a broader term for the organised market as a platform for trading assets.
A distinction is made between stock exchanges (capital market) and commodities ex-
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changes (commodities market) depending on what is traded there, such as shares, bonds
and foreign currency or specific commodities. Trading takes place at specific trading
times at exchanges and in accordance with the stipulations of each exchange’s rules and
regulations. See also initial public offering (IPO).
EXPANSION The growth strategy of a company. The targeted drive for greater sales
and revenue through an enlargement of the sales area, the establishment of new outlets
or the acquisition of other retail companies. Expansion may be aimed both at the home
market and at foreign countries. Expansion is considered to be the motor that drives
corporate development. See also internationalisation, international expansion and
foreign markets.
EXPORTS See also foreign trade. The sale of goods and services to a foreign country. The
direct export business is characterised by direct transactions between domestic companies
and foreign buyers. In the indirect export business, domestic companies operate through an
intermediary, a company specialising in exports (exporter). In the retail sector, exports are
less important than imports, since classic retailers do not typically produce merchandise
for sale on foreign markets. However, retailers buy food or clothing, for example, on foreign
markets and then sell this merchandise on their domestic market.
EXPRESS SELF-CHECKOUT See self-checkout.
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FACTORY OUTLET CENTRE (FOC) A special form of shopping centre with stores that
are each dedicated to a single brand. As a rule, FOCs are uniformly planned, financed,
built and managed, usually outside city centres. Typical FOCs include stores from the
fashion/textile, leather goods, shoes, accessories and jewellery segments. In contrast to
conventional retailing, FOCs usually sell articles of lesser quality at distinctly reduced
prices. These result from excess production, phase-out models or sample collections.
FAST-MOVING CONSUMER GOODS (FMCG) Consumer goods that have a quick turnover and are generally consumed on a daily basis (e.g., food, household cleaners and
personal hygiene products). Consumers spontaneously and routinely buy these goods
without a long decision-making phase. FMCGs are characterised by a low per-unit profit
margin. Capital goods and luxury goods are at the other end of the turnover/margin
spectrum. However, even these capital goods can become FMCGs if they are offered at
reduced price during a promotional campaign (see special offer).
FEASIBILITY STUDY Also economic calculation or viability analysis. This examines
whether a process technology, a project or a business transaction can be realised. To
this end, a comprehensive future model is developed to predict the economic efficiency
and ability to integrate the project or business transaction into the existing corporate
strategy. ­METRO GROUP, for example, conducts feasibility studies before deciding to
enter new foreign markets. ­METRO GROUP analyses the viability of expansion projects
and, based on such factors as political stability, economic growth and buying power of
the population, gauges the likely success of a project.
FIELD FORCE A collective term for all sales employees who regularly visit customers at
their usual premises, for example, at their place of business for professional customers.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Food labelling
Direct contact is advantageous for both parties: customers benefit from comprehensive
advice as well as products and services tailored specifically to their requirements. Meanwhile, the company can tap existing sales potential more effectively and boost customer
retention. At the same time, the company receives up-to-date information about target
groups and trends by speaking to customers in person. By actively seeking out cus­
tomers, the field force also strengthens the company’s image as a competent business
partner. In the retail and wholesale sector, the field force approach is primarily used in
the cash-and-carry segment.
FLAGSHIP STORE Brands and retail chains establish flagship stores as prestigious
locations. Their prime function is to convey a certain brand image. Flagship stores also
often provide an environment for piloting new sales concepts and technologies. As these
stores have to communicate the brand’s identity particularly strongly, they tend to be
distinctive in terms of their location, architecture, interior design, size, workforce and
product range. One example of a flagship store is Prada in New York: the fashion brand
spent 40 million dollars purchasing a former branch of the Guggenheim Museum and
having it converted by the internationally renowned architect Rem Koolhaas. The store
now displays the latest collections in an area spanning over 2,000 square metres. It uses
state-of-the-art technology, including radio frequency identification (RFID).
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FOOD The general definitions of food and consumer products (non-food) are laid down
in the German Food and Consumer Products Act. According to this definition, food includes all substances that may be eaten or drunk either in an unaltered, prepared or
processed condition (excluding pharmaceuticals); tobacco goods are food-like products.
­METRO GROUP defines the term food more widely to include the following product categories: fresh food (such as fruit, vegetables, fresh meat and fresh fish, dairy products),
storable foods (such as sausage and other meat products, preserves, delicacies and
foodstuffs such as pasta and sauces), frozen foods and beverages of all kinds (including
alcoholic beverages), luxury goods (e.g., cigarettes), dietary supplements (e.g., vitamin
preparations), pet food, detergents and household cleaners. All other products belong to
the non-food category. The term “near-food” can also be used to refer to luxury goods,
pet food, detergents and household cleaning products.
FOOD ADDITIVES All substances that are neither food ingredients nor foodstuffs themselves, but are added to foodstuffs to change or enhance certain characteristics. They
can, for example, be used to extend the shelf life, change appearance or improve taste.
Within the EU, additives are generally subject to the prohibition principle, in other words:
anything that is not expressly permitted is forbidden. Permitted additives may only be
used if they do not mislead customers, are technically necessary and present no risk to
health. All permitted food additives within the EU are assigned a standardised so-called
E number and must be clearly declared on the product label. Currently, there are more
than 300 different permitted food additives. See also food labelling.
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FOOD AND LUXURY SALES The key figure defining the consumption of food and luxury
goods within a period of time. Examples of food are greens, meat and pasta; luxury
goods include cigarettes and alcoholic beverages. In the retail and wholesale sector, this
parameter is used as a basis for strategic assortment planning and price policy. See also
demand.
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FOOD LABELLING The rules for food labelling are laid out in the EU Food Information
Regulation. This means that, as of 13 December 2014, a single set of rules have stipulated
the information that must appear on food packaging throughout the European Union. For
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instance, the packaging must include a description of the food, its ingredients, potential
allergens, the best-before date and the net contents. In addition to this, special mandatory
details, such as information on their origins, must also be provided for some foods.
Pre-packaged foods will also have to comply with uniform nutrition labelling rules as of
December 2016.
FOOD RETAIL A general term for companies in the retail industry whose stores offer an
assortment that primarily consists of food. These include supermarkets, superstores,
discounters and hypermarkets. Many of these stores also offer such non-food products
as textiles, household products and electronics. However, such merchandise groups are
marginal. At M
­ ETRO GROUP, food retail is one of four business areas and is represented
by the sales line Real.
FOOD SAFETY Describes measures taken to protect consumers against health risks
and hazards related to the consumption of food. Consumer health is at risk, for example,
when eating spoiled food or food products whose ingredients and additives (food additives) are identified incompletely, incorrectly or in a misleading manner (labelling obligation, food labelling). The German government works to ensure this protection within
the parameters of the Food and Consumer Products Act. It specifies the conditions under
which food may be sold for consumption by producers, suppliers and retail companies.
Compliance with the provisions is checked by means of regular official food monitoring.
In turn, many retail companies themselves take comprehensive and precautionary measures to ensure food safety. The food destined for sale at the stores of M
­ ETRO GROUP has
to pass several examination phases within the scope of the group’s own quality assurance. In this area, the group closely cooperates with independent food inspectors.
FOREIGN MARKETS Countries outside of a company’s domestic market. Retail com­
panies operate in foreign markets in order to tap additional growth potential and compensate for fluctuations in domestic demand. See also internationalisation.
FOREIGN TRADE The procurement (import) and/or sale (export) of merchandise
­ eyond the national borders of a country. The opposite of this is domestic trade. See
b
also retail.
FOREIGN TRADE ASSOCIATION (FTA) Association of foreign trade companies
representing the interests of the European trade sector, based in Brussels. The FTA is
composed of companies as well as national trade associations. Its main functions are:
representation of the members vis-a-vis the EU institutions, information about new statutory
regulations and consultancy for individual company issues relating to foreign trade.
FRANCHISING Also referred to as a licenced sale or franchise system. A contract-based
form of organisation: the franchiser grants independent franchisees the right to offer
certain goods and/or services to third parties using the name and/or trademark of the
franchiser. In exchange, on joining the system, the franchisee makes a contribution in
cash or in kind and pays a revenue-based commission to the franchiser. This enables the
franchiser to keep capital investments low when expanding. Franchise systems are widespread in the clothing retail industry and the restaurant sector.
FRESH PRODUCE ASSORTMENT The range of goods of a retail store such as a superstore or a hypermarket, where fruit, vegetables, fresh meat, fish, dairy products, bakery
products and frozen food are offered. See also fresh produce competency.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / GLOBAL ECR SCORECARD (EFFICIENT CONSUMER RESPONSE)
FRESH PRODUCE COMPETENCY The ability to consistently offer customers extremely
fresh food. An essential component of fresh produce competency is an uninterrupted cold
chain. This is the sustained, controlled cooling of fresh products such as meat, fish, fruit
and vegetables from the producer to the store. See also logistics.
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GERMAN ACT AGAINST UNFAIR COMPETITION Fellow competitors, consumers and
other market players in retail are protected from unfair business transactions by the
German Act Against Unfair Competition (UWG). The act’s objective is to prevent distorted
competition. The UWG was introduced in 1896 and has been adjusted several times,
mainly in line with European requirements, and harmonised with legislation throughout
the EU. In 2008, a blacklist of 30 unfair business practices was incorporated into the
UWG. The act primarily prohibits misleading advertising, misleading or unfair business
practices and unacceptably aggressive sales techniques.
GLOBAL ECR SCORECARD (EFFICIENT CONSUMER RESPONSE) An annual survey
conducted by the Consumer Goods Forum (CGF) to establish the progress that has been
made in implementing global ECR standards and to what extent the companies involved
fulfil these norms in their business processes. Around the world, numerous companies
from the retail industry and wholesale industry are involved in the scheme, along with
manufacturers/suppliers, commodity suppliers, packaging suppliers and service providers. The web-based capability assessment tool is divided into three parts: entry-level
capability assessment, intermediate-level capability assessment and standard capability
assessment. These can be selected depending on the time and resources available.
The standard capability assessment, for instance, consists of 39 criteria relating to staff
(“prepare our people”), customers (“focus on the customer”), the supply chain (“share our
supply chain”) and the flow of information between partners (“connected business information”), which can be given a score of 0 to 5 depending on how well defined they are.
Apart from this, indicators are measured, which are divided into three areas:
1.Business measures
14 key performance indicators (KPI) that reveal how efficiently the company performs,
such as supplier service level, unit fill rate, on-time delivery, inventory cover, on-shelf/
point-of-sale out-of-stocks, order-to-delivery cycle time, spoilage and distribution
costs.
2.Implementation measures
15 KPIs to assess the extent to which GS1 standards involving collaboration and transactions between trading partners have been implemented, such as the allocation of
Global Trade Item Numbers (GTIN), Serial Shipping Container Codes (SSCC), Global
Location Numbers (GLN), EDI message formats and global data synchronisation.
3.Optional measures
The option also exists to apply an additional 18 KPIs.
Comparable statements can be made thanks to the uniform KPI definitions. The ECR
skills and capabilities of all companies involved are made transparent in the global
ECR scorecard. The scores assess the current level of ECR implementation and enable
benchmarking with best practice and other industry partners (best practice principle).
This process also reveals specific opportunities for ECR improvements and establishes
the basis for internal company targets and action plans involving trading partners. All
­METRO GROUP sales lines have been using the global ECR scorecard since 2004 to assess
their business processes.
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GLOBAL LOCATION NUMBER (GLN) A clear, globally valid, non-overlapping number
used to identify companies, subsidiaries, branch offices and such organisationally rele­
vant company units as warehouses or delivery ramps. The GLN – formerly the Inter­
national Location Number (ILN) – is a GS1 standard. On forms, it replaces the sender
and recipient address data that were difficult to read by machine and to process. Com­
panies that want to join the global numbering and coding system of the GS1 have to apply
for a GLN at one of GS1’s member organisations. At the same time, the GLN is also the
precondition for a company to receive Global Trade Item Numbers (GTIN) that clearly
iden­tify their products.
GLOBAL STANDARDS MANAGEMENT PROCESS (GSMP) A process that helps develop and constantly review global standards. The most important standards include the
GS1 standards, such as the Global Trade Item Number (GTIN) that is used to identify
products and the Global Location Number (GLN) that is used to identify producers. The
aim of the global standards management process (GSMP) is to standardise transfers of
merchandise and data around the globe and to eliminate communication barriers. The
two organisations EAN International and Uniform Code Council (UCC) initiated the global
standards management process (GSMP) in 2002. Since January 2005, the GSMP has been
directed by GS1.
GLOBAL TRADE ITEM NUMBER (GTIN) An internationally coordinated, uniform and
non-overlapping 8-digit or 13-digit article number for the clear identification of products and services. The GTIN is a GS1 standard. It forms the basis for the use of barcode
technology. The GTIN is assigned in Germany by the standardisation organisation GS1
Germany. The precondition for the assignment of a GTIN is the Global Location Number
(GLN). See also EAN barcode.
GLOBALGAP GLOBALGAP is a private-sector body that certifies agricultural and aquaculture products. The global standard for good agricultural practice (GAP) is based on an
initiative by European retail and wholesale companies and includes guidelines for wages,
occupational safety and hygiene along with production standards. Certification according
to GLOBALGAP is particularly relevant for business-to-business (B2B) and forms part
of companies’ corporate responsibility. Businesses are also increasingly looking for
sup­pliers whose products meet GLOBALGAP standards. Compliance with GLOBALGAP
standards is particularly important to ­METRO GROUP in terms of fruit and vegetables.
GOOD CORPORATE CITIZENSHIP Social responsibility taken on over and beyond pure
business concerns. Companies show good citizenship when they get involved in social,
ecological or cultural programmes and initiatives. These activities provide companies
with new ways to position themselves within the competitive field – externally as well as
internally. Assuming social responsibility is a cornerstone of ­METRO GROUP’s corporate
culture. The group encourages charitable activities by its employees by engaging in
intercultural dialogue with internal and external partners as part of its good corporate
citizenship and corporate responsibility (CR) programmes. The group also assumes
responsibility by launching or participating in initiatives and programmes on the local,
national or international level as well as by implementing appropriate measures. These
include, for example, the support of local areas and their residents as well as targeted
aid of the needy.
GOODS See merchandise.
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GLOSSARY / GS1 EPCGLOBAL
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GREEN LOGISTICS Describes an approach to logistical processes and systems which
takes ecological criteria as well as economic factors into account. Environmentally
friendly logistics that preserve resources help to safeguard a company’s value in the long
term. The ­METRO GROUP procurement logistics concept fulfils the criteria of green
logistics by pooling consignments to a large extent and ensuring that transport capacities
are filled. A certified emissions calculator is used to show that greenhouse gases have
been reduced – a key “green” effect of the concept.
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GROSS DOMESTIC PRODUCT (GDP) Equivalent to the monetary value of all goods and
services produced in a country during a reporting period after deducting the value of the
goods consumed as intermediate input in the production process. GDP is calculated on
the basis of output compilation: this calculation defines the value added by all producers
as the difference between the value of the merchandise produced and services provided
(production value) and the consumption of intermediate input. Furthermore, taxes on
goods are added (such as tobacco, oil and value added taxes), and goods subsidies are
deduced. Intermediate input is defined as commodities and services purchased from
other economic areas and consumed for production. According to the German Federal
Statistical Office, the retail sector contributed approximately 10 per cent to Germany’s
nominal gross value added in 2014.
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GROUP STRATEGY See corporate strategy.
GS1 A neutral, non-profit, international organisation that develops standards for the
whole value chain across multiple sectors and helps to implement them. One example
is the EAN barcode. This consists of an 8-digit or 13-digit Global Trade Item Number
(GTIN), which serves as a unique identifier for an article. GS1 was established in 1974
by manufacturers and suppliers from twelve European countries to develop a uniform
article coding system. Today, GS1 is represented in over 110 countries with more than
110 member organisations and in excess of a million employees. The German member
organisation is GS1 Germany in Cologne.
GS1 DATABAR A linear barcode capable of encoding information such as an item’s
weight, best-before date and serial number in addition to its Global Trade Item Number
(GTIN) in a very small format. It can be read in any position and direction, making it
­suitable for use at the point of sale (POS). The GS1 DataBar closes a number of gaps by
catering for articles which could not previously – or only to a limited extent – be labelled.
It is used, for example, to label items that vary in weight, such as fruit or cheese. How­
ever, it is also suitable for other fresh produce or vouchers. The GS1 DataBar has been
used at the point of sale based on bilateral agreements between retailers and suppliers
since 2010. It has been an open standard for the POS since 2014.
GS1 EPCGLOBAL is a task area of the global non-profit organisation GS1 and supports
the worldwide implementation of the Electronic Product Code (EPC) as well as associated standards. Its aim is to ensure that information is shared transparently, efficiently
and reliably throughout the value chain. The GS1 EPCglobal Architecture Framework is a
document containing related hardware, software and data standards that apply to shared
network services in connection with RFID. The GS1 EPCglobal Architecture Framework
covers three large areas: the physical exchange of EPC-based objects, the joint use of
EPC-based data for enhanced transparency, and EPC-based infrastructure for capturing
and storing data.
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GLOSSARY / GS1 Germany
GS1 GERMANY A service and knowledge centre which helps companies from all sectors
in Germany use modern communication and process standards in practice and thereby
improve their workflow efficiency. Among other things, GS1 Germany is responsible for
the globally unique article numbering system GS1, which forms the basis for barcodes. In
addition to this, GS1 Germany promotes the use of new technology for the fully automatic
identification of objects (Electronic Product Code, EPC; radio frequency identification,
RFID) and for standardised electronic communication (electronic data interchange, EDI).
It also concentrates on solutions that improve the customer experience (Efficient
Consumer Response, ECR) and caters for trends such as mobile commerce, multi­
channel retailing and sustainability in development work. GS1 Germany is part of the
international GS1 network and is the second-largest of the 110-plus GS1 local offices after
the USA. It is owned 50:50 by the EHI Retail Institute and the federation Markenverband.
METRO GROUP has worked closely with GS1 Germany since 1975. The centre is involved
in numerous ECR projects and represented on important committees.
GS1 STANDARDS Global, non-overlapping numbering and coding systems used to clearly
identify merchandise and services. With GS1 standards, specific logistical information,
such as article descriptions, addresses or characteristics of shipping units, is numerically
encoded and made machine-readable. The information is shown either as a barcode
on articles, packaging and shipping units or translated into a special communication
language (EANCOM®) for electronic data communications (electronic data interchange,
EDI). The GS1 standards basically consist of the following three major numbering and
coding systems:
>> The Global Location Number (GLN) allows for the unmistakable identification of the
addresses of companies, subsidiaries, branch offices and logistically relevant equipment, such as delivery ramps.
>> The Global Trade Item Number (GTIN) is used for the global and uniform identification
of merchandise and services.
>> The Serial Shipping Container Code (SSCC) is used to encode information on transport and storage units, such as pallets.
GS1 standards ensure the fast and error-free processing of information exchanges
among producers, distributors, service providers and retailers. As a result, they help
optimise the process chain. Users receive the numbers after paying a fee to the national
member organisations of GS1. In Germany, this is the responsibility of GS1 Germany.
GS1 US A North American standardisation organisation that was founded in 1969 by
American manufacturers and retail companies under the name Uniform Code Council.
Its task is to develop and manage a uniform numbering scheme for identifying goods
and services valid throughout the American consumer goods industry. One example of
such a scheme is the Universal Product Code (UPC). In the long version, it consists of a
12-digit code that clearly labels an article. In the short version, a 12-digit UPC code can
be encrypted through zero suppression in the short UPC e-symbol. The UPC appears on
product packaging in the form of a machine readable barcode.
GS1-128 CODE International GS1 standard that is used to clearly code logistical information, including the production and expiry date, weight of an article, batch number as
well as manufacturer and recipient identification. With the help of the GS1 data coding
concept, more than 70 different data elements can be displayed in the GS1-128 barcode
and read by a machine. The GS1-128 code was developed at the beginning of the 1990s.
The central element of the code is the 18-digit Serial Shipping Container Code (SSCC).
Manufacturers use this to clearly and seamlessly identify their transport units, such as
pallets. The GS1-128 barcode is printed on the so-called transport label.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Hypermarket
GUIDELINE DAILY AMOUNT (GDA) A guideline value for the recommended daily intake
of a nutrient. GDA information on products helps consumers plan their individual diet. It
indicates the amount of calories and nutrients that covers a person’s daily requirements.
While GDAs are based on the latest dietetic research, they should be viewed as a
sugges­t ion only. The actual need depends on many personal factors, including age,
sex and physical activity. This is reflected in the different GDA tables for men, women and
children. Statutory nutrition labelling normally shows the GDA of a healthy middleaged woman with an average level of physical activity. This standard was also adopted
for ­METRO GROUP’s food labelling system.
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HABITUAL BUYING Also called habitual purchasing, behaviour or routine purchasing.
Unlike in unpremeditated buying situations, the customer makes his or her buying decisions by force of habit. The customer is not inclined to explore alternative choices and
repeatedly chooses the same product (product loyalty) or products of the same brand
(brand loyalty).
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HAZARD ANALYSIS AND CRITICAL CONTROL POINTS (HACCP) This system is used
for monitoring food safety and thus consumer protection. In accordance with the HACCP
concept, companies check critical points and potential dangers in the production process.
They ensure the safety of food products and lay down guidelines for procedures for intervention in critical situations in order to minimise risks. The concept was originally de­
veloped by NASA in the 1950s to monitor food rations in space, but has since been adapted
for use in the food retail industry. The food hygiene regulation has made the use of HACCP
compulsory for all companies in Germany that produce, process or sell foodstuffs. In
addition to this, since 2006, it has been illegal in the EU to import or trade foodstuffs that
do not comply with HACCP guidelines.
HOUSEHOLD SIZE The number of people living in a private household, described, for
example, as a single-person household, a two-person household or a four-person household. Household size is a key figure in consumer research (see also panel). It also plays
an important role in category management, where retail companies determine the core
target group for their stores.
HYBRID CUSTOMER A customer known for situational buying behaviour. Generally
speaking, the hybrid customer brings together contradictory forms of behaviour within a
single person. Hybrid customers will do such things as buy products for their daily needs
at a discounter and then purchase products for similar reasons or on impulse at highpriced petrol station convenience stores. Faced with such variable behaviour, the goal
of retail should be to establish a long-term partnership with customers. The hybrid customer should be distinguished from the smart shopper, who generally buys high-quality
merchandise at the lowest possible price.
HYPERMARKET Retail store with a minimum selling space of 5,000 square metres and
about 33,000 to 63,000 different articles that are mainly offered in a self-service format. In
addition to food, the assortment includes consumable durables and consumable goods.
Hypermarkets are typically located outside of city centres (location). ­METRO GROUP’s
sales brand Real operates 302 hypermarkets. See also cash-and-carry.
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GLOSSARY / Import
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IMPORT The procurement of goods and services from foreign countries. In the case of
direct imports, the retail company buys the goods directly from the foreign manufacturer
of branded products. In the case of indirect imports, the importers are intermediaries
who may themselves act as suppliers to trading entities. See also exports.
IMPORTER A retail or wholesale company that procures merchandise abroad and resells it on its domestic market (e.g., wholesaler for Italian gourmet products that buys
goods in Italy and sells them to restaurants or fine food shops in its own country).
IMPULSE BUYING Also referred to as spontaneous purchasing. A kind of buying behaviour
in which unforeseen influences prompt customers to make a purchase. Retail companies use targeted incentives such as the presentation of the merchandise at the point of
sale (POS) or advertising activities and in-store sales events to trigger such spontaneous
purchasing. The opposite of impulse buying is routine, needs-based or habitual buying.
INCOMING GOODS CONTROL Inspection of delivered merchandise upon arrival. In most
cases, a random quality inspection (quality assurance) is carried out on the merchandise. In retail, another quantitative inspection is performed to identify whether the quan­
tity and type of incoming merchandise correspond to the order.
INDUSTRIAL B2B TRADE Industrial B2B trade comprises the branches of the wholesale industry that first and foremost supply production businesses such as industrial
manufacturers, tradesmen’s businesses and other commercial users with capital goods,
raw materials and supplies (see also production goods). This is complemented by consumer goods wholesale trade.
INDUSTRY SECTOR An economic sector that can be defined in terms of characteristics
relating to production or materials. Retail is an industry sector. Retail segments whose
assortments are characterised by some kind of relationship between the articles offered
(such as food retail or fashion retail) are also referred to as industry sectors. A retail
company’s affiliation with a specific industry affects the choice of location, the com­
position of its assortment, its price policy, its target group marketing and its store design.
Cost structures, productivity features or margins also vary between sectors.
INFORMATION TERMINAL An interactive in-store medium at the point of sale (POS)
that offers customers comprehensive information concerning, for example, production
methods, product ingredients, sales prices and special offers. Additional applications
can include recipe ideas, housekeeping tips, suggestions for healthy nutrition, hair colour
advice and information about the quality and source of products. The customer can dir­
ectly print out the information at the terminal. Information terminals can be easily operated by the customer via touch screens.
INITIAL PUBLIC OFFERING (IPO) The process of a company floating its shares on the
stock exchange for the first time. An IPO is generally supported by one or more banks. As
corporations have to produce various documents, a lead time of one year is usually needed prior to stock market flotation. IPOs enable companies to boost their liquidity and fund
their growth. In return, however, they should commit themselves to enable shareholders
to participate in their success.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
INNOVATION MANAGEMENT A key task for companies which involves the systematic
planning, management and control of innovations within the organisation. As part of its
group-wide innovation management system, ­METRO GROUP constantly enhances its
business processes with strategic goals in mind (process optimisation) and pools its
research and development activities and issues. Innovation management aims to ensure
that the sales lines’ current and future merchandising concepts are relevant to customers
(consumers and business owners) and constantly enhance the added value they deliver.
In concrete terms, it is about implementing ideas for concepts, products and services and
thereby ultimately helping to enhance the company’s value.
IN-STORE MEDIA Media deployed at the point of sale (POS). They include advertising
posters, radio (in-store radio), TV and interactive information terminals. In-store media are designed to entertain customers and inform them about products and the store.
By advertising and explaining products, customers are encouraged to buy products or
­special offers. ­METRO GROUP uses various types of in-store media in the stores of its
sales lines, including multimedia information terminals in its Real stores. These information terminals enable customers, for example, to check their number of Payback loyalty
points and exchange them for merchandise vou­chers or access wine recommendations
and recipe suggestions.
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IN-STORE RADIO Transmission of music and information into the sales area. Retail
companies make use of in-store radio to create a pleasant shopping atmosphere and
inform customers about special offers or new products. See also in-store media.
IN-STORE RESTAURANT CHAIN A standardised, multipliable and centrally controlled
restaurant concept in shopping facilities, which can easily be transferred to new locations,
including abroad.
INTERNATIONAL ACCOUNTING STANDARDS (IAS) See International Financial
Reporting Standards (IFRS).
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INTERNATIONAL EXPANSION A corporate strategy to grow by tapping new markets
abroad. Before entering new markets, companies typically conduct a feasibility study. As
a retail and wholesale company geared toward the continuous and sustained increase of
its economic value added (EVA), ­METRO GROUP has consistently driven its international
expansion forward. This strategy is an important growth driver for the group, especially in
emerging markets.
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INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) Formerly: International Accounting Standards (IAS). Accounting directives for corporations. The IFRS have been
issued by the International Accounting Standards Board (IASB) since April 2001. The
International Accounting Standards (IAS) issued by its predecessor, the International
Accounting Standards Committee (IASC), remain in effect as well. The basic elements of
accounting under the IFRS/IAS are: the balance sheet, income statement, cash flow and
the notes and supplementary information. In contrast to the annual financial statements
prepared under German law, the IFRS/IAS accounting standards focus on investor-oriented
information. The standards provide more comprehensive disclosure than the German
Commercial Code (HGB). As a result, the assets and liabilities position of a company
becomes more transparent to the investor. Since 2005, the EU regulation 1606/2002 has
required companies to produce annual reports according to the IFRS.
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GLOSSARY / Internationalisation
INTERNATIONALISATION A (retail and wholesale) company strategy that involves multi­
plying its merchandising concept beyond national borders in order to generate growth.
INVENTORY At a closing date, the assets and liabilities of a company must be precisely
determined. The result is written down in the inventory. The positions and values of the
inventory are included in the balance sheet. Physical articles are tracked by counting,
measuring, weighing or estimating. Monetary assets such as claims and debts are determined through accounting and receipts, and bank balances through account statements.
In a retail company, inventory is a time-consuming job because of the large number of
products. ­METRO GROUP employs forward-looking radio frequency identification (RFID)
at METRO Cash & Carry and Real. It simplifies the automatic control of all goods movements. Should RFID be used extensively at item level in the future, it will allow for select­
ive inventory control.
INVENTORY MANAGEMENT Today mostly computer-aided, inventory management
encompasses the receipt, unloading and booking of merchandise at the warehouse of a
wholesale or retail store or at the intermediate warehouses of a retail company. The ad­
equate warehousing of merchandise is also part of inventory management, as are regular
stock checks and the (electronic) registration of deliveries and shipments. Today, information about changes in merchandise inventories is typically stored in computer-based
merchandise management systems. Using radio frequency identification (RFID), stores
can assess the inventory situation at all times (demand assessment). RFID allows the
wireless identification of merchandise using radio signals. As a result, it provides greater
efficiency and precision in the delivery and shipment of merchandise, in order picking
and inventory control.
ISO STANDARD A binding guideline published by the International Organization for
Standardization (ISO), for example, with regard to the manufacture of goods. One of the
best-known standards is the ISO 9000 series, which governs quality management systems. The ISO 9000 rules are an industry-and-product-specific quality assurance system
for goods and services designed to protect consumers. See also consumer protection.
ITINERANT RETAIL A form of trading in which, in contrast to stationary retail, merchan­
dise is not sold at fixed locations and selling partly occurs without points of sale (POS).
Itinerant retail includes door-to-door sales, market or fair selling, street sales or weekly
markets.
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KEY ACCOUNT Major customers of a company, mainly in the service sector. A key account is measured by its importance to a company’s revenue and earnings. Key accounts
typically secure a company’s economic existence. The cooperation with and attendance to
key accounts is described as key account management.
KEY PERFORMANCE INDICATOR (KPI) KPIs are figure-based indicators used to assess the performance of a company or its organisational units. The use of such indicators
enables managers to spot undesired trends quickly and react to them, for instance, by
adjusting processes. At the same time, KPIs define a company’s interests and targets.
Different indicators are used for different organisational units. For example, earnings and
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / LOCATION
profitability are crucial for financial controlling. Meanwhile, the marketing department
might use advertising reach as a KPI, and production would examine fault rates, rejects
and delivery times.
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LABELLING OBLIGATION Also referred to as statutory labelling obligation. The obligation
to provide certain goods with specified data to inform the consumer. Food, for example,
has to be marked with the best-before date or textiles with the material composition and
care instructions. This obligation is based on the German Food and Consumer Products
Act. See also food labelling, food safety. Beyond the legally required information, many
manufacturers voluntarily affix word and/or pictorial symbols to their products in order
to highlight the quality of the product or its geographical origin. See also quality seal,
country of origin label.
LANDED PRICE Also acquisition costs. The landed price is determined by the pur­chase
price plus the retail company’s procurement and acquisition costs minus rebates and
discounts. Procurement and acquisition costs represent the component of overall costs
which the retail company incurs before it has received the merchandise and which can
be directly allocated to the merchandise, invoice or supply. They include freight charges,
insurance fees, administrative costs and the costs of the procurement unit itself.
LIKE-FOR-LIKE GROWTH A retail company’s total sales and revenue growth in comparison to the previous year’s period, which, in the case of chain store retail companies,
is adjusted for the sales increases and/or losses of the newly opened and/or closed retail
space during the reporting period. Only the like-for-like change in sales shows whether a
retail company has improved its productivity per area unit (sales related to selling space,
euro per square metre).
LISTING FEE The listing fee is a sum of money agreed upon between the retailer and the
manufacturer for the addition of a new product to the assortment. The listing fee repre­
sents a discounted price that the manufacturer grants the retailer either on a one-off
basis or on the price of the respective article in each goods transaction. The economic
reasons for the listing fee include sharing the risk posed by the launch of a new product.
Adding new products to an existing assortment is a high-risk strategy and the costs involved are considerable, which is why manufacturers and retailers share them. Another
factor is the efficient use of shelf space, which is a scarce resource.
LOCATION The geographical position of a retail company and/or its outlets. The selection
of the location (location planning) or store site for retailers typically depends on aspects
related to sales. Ideal locations are characterised by a high customer frequency, good
transport connections, a large catchment area, a suitable target audience and parking
facilities. First-class business locations (prime locations) are frequently found in city
centres, with the disadvantage of high rents. M
­ ETRO Cash & Carry wholesale stores,
for example, are often positioned in business parks outside of city centres, with the
advantage of being able to offer comprehensive parking facilities free of charge.
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GLOSSARY / Location planning
LOCATION PLANNING All activities for finding and selecting a suitable location for the
business of a retail company or individual outlets. The envisaged target group and the
company’s own merchandising concept are key criteria for the selection of a location.
The basis for location planning is a market and location analysis that makes allowances
for relevant factors, such as the density of competition, acceptance of the assortment,
population, population structures, catchment area and buying power indices. As a
service provider for the search, development and construction of retail locations,
METRO PROPERTIES supports and accelerates the international expansion of
­METRO GROUP’s sales lines.
LOGISTICS Supply chain management. Logistics is an essential part of the supply
chain of a retail company. With the use of a well-conceived monitoring system of the
supply chain, transport and warehouse costs can be reduced. As part of its innovation
management, ­METRO GROUP is continuously working to optimise logistical processes,
for example, by means of its projects efficient unit loads and cross-docking.
LOYALTY CARD Also customer card. Loyalty cards are issued by retail companies to
customers to increase shop loyalty. They reward card holders for every purchase by
offering discounts or points that can be redeemed on future purchases. Some loyalty
cards are a combination of credit and customer cards. Examples of loyalty cards include
Payback, Miles & More (Lufthansa) and the Ikea Family Card. The METRO GROUP sales
brand Real, for instance, uses the Payback card to strengthen customer ties.
LUXURY GOODS Food that does not fulfil a nutritional requirement, but is rather consumed solely due to its flavour and/or other stimulant effects. Luxury goods include,
among others, alcohol, coffee, chocolate and tobacco.
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MAIL-ORDER BUSINESS Typical organisational form of distance retail, in which a
retail company offers customers merchandise via catalogue, advertisement, prospectus,
internet, radio or TV. Customers place their orders by phone, fax, order slip or online and
receive the merchandise, usually within a few days, by post or courier.
MANUFACTURER’S BRAND A brand created by a manufacturing company to identify
articles and thereby set them apart from other products on the market. See brand-name
product or private labels /own-brand products.
MARGIN The difference between the purchase price or landed price and the selling
price of the goods sold by a retail company. Every retail company strives to achieve a
positive margin. This means it seeks to generate a profit from its sales that exceeds the
cost of procurement and lost merchandise, for example from shoplifting or spoilage.
MARKET DEVELOPMENT FUNDS (MDF) Funds (or occasionally free merchandise)
granted to a retail company by a manufacturer. These funds exist for the financing of
advertising and special promotional activities, and are often used to market products in
sales promotions and to offer them for sale at reduced prices (see also special offer).
As market development funds influence pricing, they are viewed critically in the context
of competition law.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Merchandise (goods)
MARKET LEADER A company that holds the largest market share in its industry sector
or segment. This share is measured by sales. Market leaders frequently serve as benchmarks for their competitors (benchmarking). The ­METRO GROUP sales line METRO
Cash & Carry, for example, is the global market leader in its segment, Media-Saturn is
market leader in Europe.
MARKET RESEARCH Measures designed to identify and map real market conditions.
Market research typically uses statistical methods and is applied by a retail or service
company to analyse customer behaviour, the effects of marketing activities as well as the
recognition of relevant sales markets. With the aid of market research, a retail company
may, for example, become aware of a change in the purchasing behaviour of its key target
group or of its own market share in comparison with competitors with respect to sales in
a certain merchandise group. The systematic and objective identification, collection and
analysis of such information aids decisions on what goods and services can be placed on
the market in what amount and at what conditions.
MASS DISTRIBUTION The sale of mass market products (durables and consumables)
for which there is uniform demand by a large group of consumers and which are typically
produced over a long period of time. The rate of stock turnover is generally higher for mass
distribution products. They also allow retail companies to exploit economies of scale. These
are generated, for example, when the fixed cost of warehousing or of visual merchandising
is divided among a larger number of products sold. The distribution of mass products
is typically effected through large-scale retail formats, such as chain store companies,
department stores and discounters. See also discounted mass distribution.
MASTER DATA Also called item master data. These include basic data for the identifi­
cation of articles (Global Trade Item Number, GTIN) and suppliers (Global Location
Number, GLN) as well as information on the size and weight of the product or on the type
of packaging. All characteristics of an article together make up the master data record.
Master data are the basic prerequisite for numerous business processes – from ordering,
shelf management, incoming goods, logistics and inventory to sales and marketing.
Today, manufacturers and retailers increasingly exchange their master data records using
online data pools. These replace the error-prone transfers by mail or fax. One example
for such a data pool is 1WorldSync, where manufacturers input their article master data
and retailers can retrieve them. The advantage: there is only one central address for
exchanging data, and the information is saved according to a specified pattern. Master
data can thus be transferred rapidly and without error. ­METRO GROUP has been using
the data pool since 1999. Buyers of the ­METRO GROUP sales brands call up the required master data there and then process them using MCAT, a data catalogue used by
­METRO GROUP’s standardised merchandise management system for managing assortment composition. The employees can then add further details, such as the retail price of
the article. In the end, each store receives master data records adjusted to its needs.
MERCHANDISE (GOODS) Item offered for sale, the basic object of retail. The assortment of a retail store (e.g., textile trade) can be subdivided into various kinds of merchan­
dise (e.g., menswear). These can be broken down into further merchandise groups
(suits, shirts, trousers). Within a certain group, various groups of articles can be differentiated (cotton trousers, jeans, woollen trousers). An article group comprises several
articles (cotton trousers with a pleated front, with creases or cargo pants). These articles
are composed of models which distinguish themselves, for instance, by colour or size.
The main task of a retail company is to offer the right merchandise to the customer in the
right assortment and quantity at the right time.
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GLOSSARY / Merchandise group
MERCHANDISE GROUP Covers like-kind articles of an assortment. The articles are
pooled to article groups which are then combined to merchandise groups. The com­
position of merchandise groups is done by category management. Category managers
at ­METRO GROUP have created four categories of merchandise groups:
>> Products that aid the profile of a sales brand;
>> Products which have to be classified as obligatory articles;
>> Articles that complement the core assortment and round off the one-stop shopping
concept;
>> Seasonal goods.
The merchandise groups are weighted differently depending on the target group of the
sales brand. For example, Real has created a merchandise group under the name “Babywelt” (baby world) that includes everything from baby food and diapers to clothing for
toddlers.
MERCHANDISE MANAGEMENT SYSTEM Computer-aided information system that
records and manages the quantity and value of goods in the supply chain down to the last
item. It covers areas such as planning, ordering, incoming goods, invoice checking, outgoing goods, the general ledger and invoicing. The purpose of this system is to manage
inventory and performance. Merchandise management systems provide retail and wholesale companies with assessment and management information about suppliers, customers and merchandise. ­METRO GROUP’s own system, the Metro Merchandise System
(MMS), is operated by the central IT service provider METRO SYSTEMS GmbH.
MERCHANDISING Distribution of merchandise, sale, sales strategy and policy. In German, the term “merchandising” is used in different ways. On the one hand, it describes
the sum of all activities in retailing that support sales, such as advertising campaigns,
tastings and sales promotions. On the other hand, merchandising is defined as customerfriendly merchandise presentation. This includes the arrangement of the products on
the shelf as well as all store design and technical measures taken to present products.
Refilling shelves, labelling goods, monitoring merchandise supplies in the shelves and
the reordering of articles that are sold out are just a few examples. Frequently, producers’
field staff are responsible for merchandising on the premises of food retailers, such as
superstores (German “Verbrauchermärkte”) or hypermarkets (German “Selbstbedie­
nungswarenhäuser”).
MERCHANDISING CONCEPT The marketing concept of a retail company. This includes
elements such as the scope and kind of assortment, size of the selling space, prices
and services offered. Different merchandising concepts include cash-and-carry, hyper­
market, superstore, single-line retail, speciality market, department store, supermarket and discounter. At M
­ ETRO GROUP, each of the sales lines – METRO Cash & Carry,
Media-Saturn and Real – has its own merchandising concept, whose efficiency is con­
tinuously increased through concept optimisation.
METHODS OF PAYMENT The payment modes in retail. These are usually classified as
either cash, semi-cash and non-cash (cashless). Cash payment is made in notes and
coins. POD (payment on delivery), which may be employed in mail-order business, is a
form of semi-cash payment. Payments made by cheque or credit card are called cashless. Most retail companies accept different payment methods – for example, cash payment or payment by credit card. Bank transfers and monthly accounting are rarely used,
but food wholesalers occasionally offer the latter. In addition to cash payment and debit
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Near field communication (NFC)
card payment, ­METRO GROUP’s sales brands METRO Cash & Carry and Real also accept
payment by credit card. The online shops of all sales brands offer their customers a var­
iety of payment methods, including payment by credit card.
MOBILE COMMERCE Mobile commerce (m-commerce) is a form of electronic commerce (e-commerce) which can be accessed using a smartphone, personal digital assistant (PDA), tablet computer or other mobile consumer device anywhere and at any time
using computer-based networks (especially via the internet). Some retail companies offer
their customers proprietary apps and optimise the way their online shops are displayed
specifically for these devices. For instance, the ­METRO GROUP sales line METRO Cash &
Carry has already set up a mobile version of its website in several countries. Customers
who visit the relevant national site with their smartphone are automatically taken to this
mobile version. Media Markt and Saturn have been offering a mobile shop since 2011
(including apps). This enables customers to shop quickly and easily using their smartphones or to check the availability of certain items in nearby stores. Products selected on
a smartphone can be collected in store the same day and even paid for using the app. See
also multichannel retailing. Real overhauled its website in 2012 and now offers its customers responsive web design. This means its site is optimised for viewing on different
devices. The Real app features special offers, the latest weekly brochures, a store finder
and a barcode scanner, making makes it easy for customers to add products to a shopping list. Customers can also use the app to access information about Payback, activate
e-coupons and collect digital loyalty points. The Real Drive app enables customers to
shop directly on their smartphones. See also Real Drive.
MOBILE SHOPPING All customer services for mobile devices. These include, for example,
apps which make it easier to shop using a smartphone or tablet computer, enabling
­customers to buy products quickly from online shops or special mobile shops wherever
they are. See also mobile commerce.
MULTICHANNEL RETAILING The sale of merchandise through several sales channels.
The individual channels and the background processes are interlinked. This creates
sales synergies. Example: a retail store simultaneously offers its merchandise for sale in
the store itself, online (e-commerce), by catalogue or on TV.
MUST-HAVE ITEMS Term used in retailing for all articles which, in contrast to impulse
articles (impulse buying), appear on shopping lists on a regular basis. Must-have items
are bought on schedule. If a customer always buys the same breakfast jam by the same
producer, this is a must-have item for him.
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NEAR FIELD COMMUNICATION (NFC) A radio standard for short-range, contactless
data transmission. With the aid of NFC, electronic devices equipped with the relevant computer chips can exchange data over a distance of a few centimetres. One chip fulfils the
role of a reader. In order to start the encoded communication, it creates an electromagnetic
field, which activates the second chip. Unlike radio frequency identification (RFID) trans­
ponders, NFC chips can act as both active transmitters and passive re­ceivers. The standard
is primarily used to simplify payment processes. For example, pilot projects in local public
transport networks allow passengers to buy tickets using NFC. All they have to do is hold
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GLOSSARY / Near-food
their mobile phone (equipped with a chip) close to an NFC terminal and confirm the transaction, for instance, by entering a PIN. The ticket price is then ­debited from their account.
­METRO GROUP first tested contactless payment in 2008. Since 2011, the Real store in
Tönisvorst has offered this payment process to its customers. Germany’s biggest mobile
payment initiative was rolled out in Berlin in April 2015, involving M
­ ETRO GROUP’s sales
line Real, all of the country’s mobile phone providers and various other retail companies.
The aim of the collaboration is to enable consumers with an NFC-compatible smartphone
to use this simple, convenient and secure form of mobile payment. In addition to this, the
initiative provides further momentum for the use and acceptance of mobile payment.
NEAR-FOOD See food.
NEIGHBOURHOOD STORE See convenience store.
NGO Short for non-governmental organisation. Coined by the United Nations, this generic
term encompasses organisations that have to fulfil certain criteria. In particular, they must
be organised democratically and may not operate for profit. Furthermore, NGOs have to act
independently of government bodies. The most famous NGOs are those dedicated to social
and environmental issues. These include Amnesty International and Greenpeace, along
with humanitarian organisations such as Médecins Sans Frontières and Welthungerhilfe.
NON-FOOD See food.
NUTRITION LABELLING A system used by manufacturers to show the nutritional
contents of food products on packaging. Methods include the ”1 plus 4“ model, which
­METRO GROUP uses for its own-brand products, as well as the traffic light system. Until
2011, listing nutritional information on food packaging was voluntary in the European Union.
However, the form of any such information was clearly defined in the various national laws
on nutritional labelling. In July 2011, the European Parliament voted for a modernised,
uniform labelling system. This makes it obligatory to state the energy contents and the
levels of six nutrients – fat, saturated fatty acids, carbohydrate, sugar, protein and salt – per
100 grams or 100 millilitres. This information must be listed in a clear table on the back of
the packaging. Manufacturers may also choose to repeat the information on the front of the
packaging and provide additional details on the nutritional contents per portion in relation
to the guideline daily amount (GDA). This EU regulation has been mandatory since December 2014 for cases in which information had already been provided. Otherwise, producers,
retailers and wholesalers have until December 2016 to implement the EU directive.
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OMNICHANNEL RETAIL A strategy linking traditional stationary retailing with e-commerce,
social media and applications for smartphones and tablets. Integrating all channels –
stationary retail, the internet and mobile shopping – offers consumers a flexible, seamless
shopping experience, since the various channels are integrated with one another at every
stage of the purchasing process and can be used together.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Own-brand products
ONE-STOP SHOPPING A retail concept designed to allow customers to meet all of
their needs for merchandise and related services in a single store or shopping centre.
E-commerce and mail-order businesses are also based on this principle.
ONE-WAY DEPOSIT A fee added to the purchase price when purchasing non-reusable
beverage containers. The relevant deposit legislation took effect in Germany on 1 January
2003. It applies to non-reusable containers for beer, carbonated soft drinks and mineral
water, but does not include single-use containers for wine, fruit juice and milk. Since 28
May 2005, the standard deposit for all kinds of containers has been 25 cents. Since 1 May
2006, the industrial and retail sectors have been required by law to operate a uniform
deposit and refunding system for all single-use containers that fall under the deposit
­le­gislation. This means that consumers can return their single-use cans and bottles to
any point of sale that sells drinks in non-reusable containers and get their deposit back,
no matter where the beverages were purchased. Retailers commit to take back all beverage packaging made of materials they carry in their product range. Since 1 May 2006,
stand-alone solutions employed by individual companies have been banned.
ONLINE SHOP Web-based retail portal that supports all stages of online ordering. Similar
to shopping in a conventional store, online shops let customers select articles from a
range of products and place them in a virtual shopping basket. Customers complete the
ordering process by submitting their order online. All ­METRO GROUP sales lines have
their own dedicated online shops and integrate these closely with their stationary retail.
See also multichannel retailing.
ORDER PICKING Assembly of merchandise based on a predetermined amount and configuration and its preparation for delivery. The warehouse employee who works through
the order is the picker. The picker’s work is always based on an order. This contains the
number and name of the merchandise and its article and warehouse site number. The
merchandise can be picked according to:
>> customer,
>> order,
>> or individual article group.
ORGANISATIONAL FORM The form through which a retail company operates its business on the market. The distinguishing characteristics of various organisational forms include the clientele, location, form of distribution, assortment, size, number of locations
and basic strategy of the company. In principle, a differentiation is made between stationary and non-stationary retail (itinerant retail). Forms of stationary or over-the-counter
selling include: speciality stores, speciality markets, department stores, hypermarkets
(German “SB-Warenhäuser”), supermarkets (German “Supermärkte”), superstores
(German “Verbrauchermärkte”) and discounters. Non-stationary organisational forms
are mail-order business and e-commerce.
OUTLET CHAIN The totality of locations at which a company is present with its outlets.
­METRO GROUP’s sales network covers a total of about 2,200 locations in 30 countries.
OWN-BRAND PRODUCTS See private labels.
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GLOSSARY / PACKAGING RECYCLING
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PACKAGING RECYCLING Reuse of packaging material. Packaging (e.g., transport
packaging, retail packaging and external product packaging) is subject to the German
Packaging Ordinance (VerpackV). Retail packaging is defined as the package a product
is sold in and which is disposed of by the consumer. This includes packaging provided by
the retail industry, caterers and other service providers that enable or help merchandise
to be presented to the consumer (service packaging), as well as disposable plates etc.
Requirements introduced on 1 January 1993 obliged producers and retailers to take back
all retail packaging from the consumer free of charge and to reuse or recycle it outside
the public waste disposal system. Producers and retailers could alternatively be exemp­t­ed
from this return obligation by participating in a system that satisfactorily guaranteed
regular, nationwide collection of used retail packaging at or near the private end con­
sumer’s home. The Green Dot (Der grüne Punkt – Duales System Deutschland GmbH)
is an example of such a system. On 1 April 2009, it became obligatory for retail packaging
to be licensed under such a system. Companies can claim back their licence fee if they
can prove that retail packaging was collected at the point of sale and recycled at the company’s own expense. However, businesses are still obliged to take back transport packaging and external packaging free of charge. In addition, ­METRO GROUP has established
its own efficient management system for packaging and recyclable material which con­
siders the individual requirements of the sales brands and is oriented toward the principles of sustain­ability. The retail and wholesale group has intensified its use of returnable
packaging and at the same time increased recycling rates for paper, compostable waste
and plastics. See also environmental management.
PANEL A term borrowed from empirical market and social research. Regular survey of
a group of people, households or companies by a market research institute. The panel
participants are interviewed over an extended period of time about certain habits and
observations and present a representative picture of a particular group of people. The
main types of panel surveys are the retail panel and the consumer panel. The results of
a panel survey allow retail companies to track market trends. Panel surveys also provide
these companies with valuable information for future, target group-specific customer
marketing activities.
PAYBACK The leading German loyalty programme. 80 per cent of the population is aware
of the scheme and its partners generate annual sales of some 23 billion euros incentivised by the card. Members hold a customer card which they present at the cash register
with every purchase and receive a proportionate amount of bonus points in return. Once
a customer has collected a certain number of points, he or she can exchange them for
a shopping voucher, choose from a selection of attractive premiums, receive a cash payment, donate the points or swap them for frequent-flyer points. Moreover, Payback customers also benefit from special promotions and made-to-measure product offers. With
its targeted and integrated marketing and individualised customer communication, the
Payback programme is a powerful tool for improving customer retention. ­METRO GROUP
took on a pioneering role in retail when its Real sales line deployed the Payback system
with great success. See also loyalty card.
PERMANENT LOW-PRICE ASSORTMENT A range of articles with permanent discount
prices that are marketed, for example, through advertising. In contrast, special offers are
used only in limited, short-term marketing campaigns.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Process optimisation
POINT OF SALE (POS) Also referred to as point of purchase (POP), meaning the place
where the sale takes place. When referring to stationary retail, POS normally describes
the selling space. Merchandise presentation at the POS has become increasingly import­
ant in the past few years because this is where customers make their impulse buying
decisions.
PRICE INDEX Statistical measure of price changes within a defined period of time
­referring to the base year. The most important price index is the cost of living index (see
consumer price index). This index expresses the average price changes for the goods
collected in a basket of consumer goods. Here, consumers provide the respective
values. In contrast, retailers provide the respective values for the index of retail prices,
which shows the development of retail prices.
PRICE LABELLING Information about the price of merchandise that is located on the
product itself or on the shelf. Price labelling is carried out either by the producer in the
form of a non-binding price recommendation printed directly on the product, or by the
retailer, for example, on the shelf. In the retail sector, price labelling enables consumers
to quickly compare goods and must therefore comply with the regulations related to price
honesty and transparency. In Germany, price labelling in retail is prescribed, substantiated
and defined by the Price Indication Ordinance of 14 March 1985. At METRO Cash & Carry,
price labelling is carried out by means of electronic shelf labels that are linked to the
checkout system by radio signal. See also electronic shelf labelling.
PRICE-PERFORMANCE RATIO The price-performance ratio describes the relationship
between the costs and the utility of merchandise or a service:
price-performance ratio = costs ÷ utility. The utility can be ascertained by evaluating
individual criteria (e.g., taste, service, etc.) according to a points system that also allows
for a weighting of criteria. As every customer assigns different importance to different
criteria, the individual utility and thus the price-performance ratio will vary from customer
to customer.
PRIVATE LABELS/OWN-BRAND PRODUCTS These are brand products that are
crea­ted and trademarked by a retail company. From a consumer’s point of view, private
labels/own-brand products of a retail company serve as alternatives to brand products
from industry because they offer an attractive price-performance ratio. From the retailer’s point of view, private labels/own-brand products are a way to rise above the competition and to improve a company’s margins. Because retailers can influence the products,
their cost and their manufacture, the ratio between the purchasing price and the sale
price is more favourable for them than with producers’ brands, and the profit margin is
therefore greater. ­METRO GROUP offers numerous own-brand products in its sales lines.
PROCESS A sequence of logically interlinked activities which generate performance or
change an object (transformation). A process has a defined start (trigger, input) and a
defined end (result, value, output). Examples of processes in the retail sector include
procurement or supply sequences. The processes of ­METRO GROUP are aligned to a
sustained positive earnings development.
PROCESS OPTIMISATION The improvement of internal and external business processes
(e.g., supply chains) with a view to achieving a sustained efficiency increase with a
bottom-line effect. As a result of the heavy price pressure in the retail industry, retail
companies have made the optimisation of process chains one of their top priorities: in
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GLOSSARY / Procurement
the interest of the customers and the retail sector in general, they continuously seek new
ways to optimise processes. The deployment of advanced technologies plays an import­
ant role. An innovative technology allowing considerable efficiency gains in the logistics
processes inherent in retail is radio frequency identification (RFID).
PROCUREMENT The purchasing of goods, services, rights, financial and other re­
sources at a previously negotiated price.
PROCUREMENT LOGISTICS A logistics concept according to which merchandise is
pooled and collected from the producer and delivered to the respective stores or warehouses. This means that there is no need for any interim storage, thus simplifying the
supply chain along which merchandise and information travels from the producer to the
store. Pooling logistics services can result in significant service and cost advantages.
Within ­METRO GROUP, METRO LOGISTICS organises the collection of merchandise from
the producers on behalf of all sales lines in Germany. In other countries, some sales
lines use the systematics autonomously. Another logistics concept that M
­ ETRO GROUP
applies is known as cross-docking.
PRODUCT RANGE The totality of the goods for sale in a store presented at the point of
sale (POS). The range of goods offered may vary depending on the merchandising concept. It comprises the quantity, quality and selection of products as well as the kind of
presentation. See also merchandise and assortment.
PRODUCT RECALL Any action by a manufacturer or retailer in which specific products
are recalled due to defects or safety risks. The public is informed about the exact
designation of the product using mass media and buyers are called upon to return their
purchase to the shop where they bought it or to the manufacturer. Product recalls are
intended to protect customers from possible damage or injury caused by defective
­merchandise. Otherwise, demands for damages might be claimed, which can be financially
damaging and cause irreparable harm to a company’s image.
PRODUCTION GOODS Unlike consumer goods, production goods are goods that are
used by producers for their manufacturing process. Thus, they are involved in the generation of economic value added. Production goods can be both consumable goods (e.g.,
varnish) or consumer durables (e.g., machines).
PROFITABLE GROWTH The central target of a value-oriented corporate strategy. Profitable growth is devised to boost not only sales volume, but also the profitability of a company. There are various profitability parameters. The (net) return on sales, for example,
describes the ratio of earnings after interest and taxes to net sales.
PURCHASE The acquisition of goods and services in exchange for money, either by the
consumer in a retail store or by the retailer in the sourcing markets. Purchasing and
selling are typical activities of a retail company.
PURCHASE CONTRACT A mutual agreement governed by the law of obligations pursuant to the provision of the German Civil Code (BGB), which is concluded with every buying
or selling transaction. The seller is obliged to surrender an object to the buyer and transfer the right of ownership. The buyer is obliged to pay the agreed purchase price and
take possession of the object. Legally speaking, a purchase contract is concluded with
every retail transaction. The customer takes possession of the merchandise. Ownership
rights are transferred to the buyer upon payment at the checkout counter. The sales
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / QS Qualität und Sicherheit GmbH
223
receipt is proof that the purchase contract has been made.
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PURCHASE PRICE Also called ordering price or prime cost. The price invoiced by the
supplier to the retail company for goods and services. The purchase price often includes
additional services such as product labelling and shelf filling or the provision of sales
staff. See also landed price.
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PURCHASING The buying of merchandise. The department in a company responsible for
the procurement of goods and services also bears this name. At M
­ ETRO GROUP, category
management and purchasing are carried out by the same team.
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PURCHASING COOPERATIVE An association of independent medium-sized retailers
that constitutes a purchasing pool in the legal form of a registered cooperative. The aim
is to achieve higher purchasing volumes by pooling demand and thus pushing through
more favourable prices with suppliers. Purchasing cooperatives increasingly provide
additional services to their members such as advice on the range of goods offered or
concerted advertising and sales supporting activities. Examples of purchasing cooperatives in German food retailing are the cooperatives Edeka and Rewe.
PURE PLAYER A generic term for companies that focus on a single, narrowly defined
line of business. The US company Coca-Cola is a classic example, as it has specialised
itself in beverages. In e-commerce, a pure player is a company that only sells its products
online and does not operate its own bricks-and-mortar stores. The advantages of this
­concept are lower acquisition and operating costs. The leading online retailer Redcoon,
which the ­METRO GROUP sales line Media-Saturn took over in March 2011, is an example
of an online pure player.
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QR CODE Quick response code. QR codes are two-dimensional codes which were developed in 1994 to label modules and components for logistical purposes in automotive
production. The QR code is a square with black-and-white markings in which information
is stored. Square blocks in three of the four corners provide orientation. The data are
protected by an error-correcting code, meaning that the image can still be read even if
up to 30 per cent of the code is not properly scanned. QR codes can be read using smartphones, tablet PCs or notebooks equipped with a camera and the corresponding software. As a result, QR codes are now used for a wide range of consumer-oriented appli­
cations, such as providing the customer with additional product information.
QS QUALITÄT UND SICHERHEIT GMBH A voluntary initiative of German retail, the food
industry and the agriculture industry for food quality assurance (QA) that was established in 2001. It is composed of representatives of associations and institutions from the
areas of agriculture, the animal feed industry, slaughterhouses and carving firms, meat
processors and the food retail industry. Its function is to organise the QA system that
provides certified quality assurance for food. A monitoring and sanction system includes
all steps in the food chain. Merchandise from the QA system receives a QA seal. The
seal was at first introduced for meat products. Since 2004, it has also been used for fruit,
vegetables and potatoes.
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QUALITY ASSURANCE (QA) A system for planning, managing and monitoring all measures designed to create and maintain a defined quality standard related to processes
or goods. The retail sector primarily uses quality assurance to safeguard the quality of
merchandise bought from suppliers and sold to customers. ­METRO GROUP’s utmost
priority is to continuously improve the quality standards of the product range and the
safety of food. The group maintains a particularly efficient quality assurance system, with
some 500 quality assurance operatives worldwide. Organisational and technical measures ensure that services and products comply with clearly defined group-wide quality
requirements. Among other things, quality assurance covers food and the raw materials
used for its production (raw materials control), producers’ and suppliers’ processes,
proper merchandise transport, the integrity of the cold chain, compliance with quality
standards and hygiene in M
­ ETRO GROUP’s facilities. In 2009, an end-to-end tracking
system for food was also introduced from field to fork. The group also proactively pursues
the continuous optimisation of quality standards in the food sector and their international
recognition. Together with other German retailers, M
­ ETRO GROUP has developed the
international food standard (IFS) for supplier audits. It is based on the HACCP rules
(hazard analysis and critical control points), a procedure acknowledged in the food
sector that identifies weaknesses in the production process and eliminates them using
suitable measures.
QUALITY SEAL A word and/or graphic symbol used to guarantee certain properties, including quality characteristics, of merchandise or services. The particular demands are
laid down by RAL Deutsches Institut für Gütesicherung und Kennzeichnung e.V. (German
Committee for Conditions of Supply) in a recognition procedure that is jointly carried out
with manufacturers and suppliers, the retail sector, and consumers, testing institutes
and government agencies. RAL (Reichsausschuss für Lieferbedingungen, established
in 1925) awards quality seals to recognised Gütegemeinschaften (quality mark associations). These consist of manufacturers and suppliers in the legal form of a registered
association. The Gütegemeinschaften in turn grant manufacturers and service providers
who voluntarily commit themselves to comply with certain quality and test conditions
the right to use a quality seal on request. Currently, there are more than 160 RAL quality
seals covering thousands of products in Germany. Well-known quality seals include the
“DLG-Siegel” awarded by the German Agricultural Society and the “Deutsche Marken­
butter” seal (German branded butter). The latter is not granted by Gütegemeinschaften,
but rather by the state. The quality seal is based on statutory provisions such as the
­German Butter Directive.
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RADIO FREQUENCY IDENTIFICATION (RFID) An innovative technology for wireless
data transmission based on electromagnetic alternating fields. The core of the technology
is a so-called RFID transponder, a thin label that contains a programmable chip and an
associated miniature antenna. The chip stores the so-called Electronic Product Code
(EPC). RFID transponders can be detected by a reader without visual contact. The transmission range is up to one metre; in logistics applications it is up to ten metres. In order
to read the information stored on the integrated chip, the reader emits electromagnetic
radio waves that are received by the antenna on the transponder. Through this electronic
connection, the Electronic Product Code can be read even without direct visual contact.
The transponder is supplied with energy through the radio frequency field of the reader
and does not need its own energy source. In retail operations, transport and merchanMETRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Real Drive
dise packaging as well as sales units and products may be equipped with RFID trans­
ponders. Readers are often installed in RFID portals at the entrance and exit of stores or
warehouses, with the result that merchandise does not have to be scanned individually.
Store shelves (see smart shelf) may also be equipped with readers. RFID creates critical
momentum for optimising the process chain, and thus constitutes an efficient alternative
to the barcode.
RATE OF STOCK TURNOVER A parameter indicating how often the stock of inventory
of a retail company as a whole or in part is sold (turned over) within a determined period
of time. It may be ascertained for an article, a merchandise group or the entire assort­
ment, but also for entire industry sectors. Based on the rate of stock turnover, it is pos­
sible to find out how long on average an article remains in stock until it is sold. The rate
of stock turnover is calculated by dividing the turnover of the merchandise within the given
period by the average inventory of the merchandise in the same period. This par­ameter is
the basis for optimising logistical processes that determine which quantities of an article
have to be permanently warehoused. The objective is to decrease the storage time of the
merchandise in order to reduce the warehouse space required.
RAW MATERIALS CONTROL Monitoring of the quality of raw materials used for the
manufacture of products. Raw materials are base materials incorporated into the product in the production process. They include, for example, ingredients and additives (food
additives). Ingredients of a frozen dish are, for example, different kinds of greens or
meat. Producers use additives to impart certain properties to the food. Food colourants,
preservatives and sweeteners are additives. They are identified by e-numbers. The food
suppliers of ­METRO GROUP undergo regular random checks during the whole period of
cooperation. Commissioned by ­METRO GROUP, neutral institutes analyse the ingredients
(raw materials) and the safety of the food supplied at regular intervals using generally
recognised rules and specifications of the quality assurance of the group. See also food
safety.
REACTION MANAGEMENT A concept for the prevention and mastering of quality incidents in retail, and part of quality assurance systems. The quality assurance system of
­METRO GROUP is based on preventing risks in the food and non-food areas. It ensures
that only impeccable and high-quality food and non-food items enter the group’s stores.
If a sub-standard food or non-food product enters circulation in spite of all these precautions, the international reaction management of ­METRO GROUP identifies and eliminates
the deficient items at the earliest possible stage. These efficient assurance systems
enable the retail and wholesale company to react immediately. The mere suspicion that a
product is defective is reason enough for ­METRO GROUP to quickly and selectively recall
the respective articles from all stores, if necessary, worldwide. The group always comprehensively informs consumers and the public early on. See also product recall.
REAL DRIVE An element of the multichannel retailing concept used by the Real sales
line, which combines the online sale of food with a pick-up store. Customers can select
the goods they wish to purchase at the website www.real-drive.de. Two hours later, the
merchandise is ready for collection from a Real Drive store. Customers just need to
present their order number and pay for their shopping either in cash or with a debit or
credit card. Real Drive primarily helps customers save time. Germany’s first drive-in food
store is located in Isernhagen-Altwarmbüchen near Hanover. In October 2011, the second
Real Drive was established in Cologne-Porz.
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GLOSSARY / Receipt
RECEIPT Written confirmation of the purchase of merchandise or the provision of a service. In retailing, the sales slip is the receipt. It confirms payment of the purchase price
and the transfer of ownership rights of an article from a retail company to the customer.
Frequently, the sales slip in combination with a warranty card also serves as the document
that entitles customers to lodge complaints about defective merchandise. Today, receipts
produced electronically at the checkout also serve as communication tools for informing
customers of points acquired when using the customer card or for advertising messages.
The receipts printed at Real stores, for example, show the number of points credited to the
customers’ Payback account for their purchasing.
RECOMMENDED RETAIL PRICE The recommended retail price (RRP) is the price recom­
mended by the manufacturer for resale to the customer through the retailer. The RRP is
a sign of the manufacturer’s knowledge of its product’s competitiveness. In addition, the
RRP offers manufacturers a means with which they can position the brand. The retail
price is one of the manufacturer’s key factors in relation to customers when establishing
a brand. In the retail sector, the RRP is merely one of several mechanisms on which
pricing is based.
REQUEST FOR PROPOSAL (RFP) During an online request for proposal, tenders are
collected from various suppliers (pre-selected in advance according to certain criteria).
During a request for proposal, the purchaser is able to get a quick overview of the market
situation and current market prices. It is also convenient for suppliers, because they can
send their tenders to the purchasers online – all they need is an internet connection.
After the results of the RFP have been collected, a decision can be made regarding further negotiations. The final decision will be made either during an online auction or a
traditional face-to-face negotiation.
RETAIL An activity by which a retail company procures merchandise that it typically has
not made or processed itself (commodities) from other market participants (e.g., producers of consumer goods) and sells it to third parties (e.g., consumers). This process
is also referred to as trade in the functional sense. In institutional terms, retail refers to
the entirety of all trading operations or retail companies; that is, all those companies that
conduct retail business in accordance with the above definition.
RETAIL BRAND A company brand with a distinct profile in retail. Today, a clear brand
profile is critical to the success of a retail company. A sales brand of M
­ ETRO GROUP, for
example, achieves the status of a retail brand if it meets all the fundamental expectations
that customers have when shopping (“quality execution”), positions itself as distinct from
its competitors through a special, efficient service and value strategy (“retail excellence”),
communicates its identity as a brand.
RETAIL INDUSTRY Retail in a functional sense: procurement of merchandise from
suppliers and sale to the consumer. In the institutional sense, the term describes companies that sell goods to consumers. In accordance with this definition, M
­ ETRO GROUP’s
sales brands Media Markt, Saturn, Redcoon and Real are part of the retail industry.
Compare with wholesale industry.
RETAIL MARKETING The specific marketing of retail to boost sales of goods and services
by using such tools as portfolio policy, price policy, sales area design and merchan­dise
presentation as well as communications (advertising, public relations, sales supporting
activities, events). The sales volume of a merchandise group can be boosted by removing individual products from the category assortment, including new ones or reducing
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Revenue
prices. Changes in shelf presentation or promotions at the point of sale (POS) may also
increase sales. In most cases, various tools are combined in what is called a marketing
mix. The sales lines of ­METRO GROUP mainly employ retail marketing within the scope
of category management.
RETAIL PANEL A panel based on regular surveys of an identical and representative
group of individuals, households or companies. The main categories of panel surveys in
the retail sector are the retail panel and the consumer panel. Retail panels, for example,
track the quantities and value of goods sold, the quantities and prices of goods bought as
well as the activities of retail manufacturers that support advertising and sales. In general,
market research institutes are commissioned to carry out such studies. Retail panels
may show how much favour individual products or brands find with the customer. They
may also show whether the products were sold at regular prices or at a discount.
RETAIL-RELEVANT BUYING POWER Buying power is defined as the net amount of
money available to private households during a set period of time. The retail-relevant
buying power is the available net income plus loans and withdrawals from savings; new
savings, debt redemption and the cost of housing, insurance and private old age provisions
as well as expenses for motor vehicles, fuels and repairs must be deducted. What remains
is the share of private consumers’ buying power that is potentially available for retail
spending. Retail-relevant buying power is a planning parameter for the strategic positioning of a retail company.
RETAIL RESEARCH A research branch dealing with issues related to retail (sometimes
called trade research). For example, retail research aims to shed light on the position
of a particular retail company vis-a-vis its suppliers, competitors and customers. It also
examines structural changes within the industry. The economics departments of some
universities include a separate chair for retail research, such as the “Institut für Handelsforschung” (Institute for Trade Research) at the University of Cologne. As a rule, major
retail companies maintain close ties and a regular exchange of information with retail
researchers. This ensures that retail companies put the theoretical conclusions from research and teaching into commercial practice. Conversely, practical knowledge gathered
by the retail companies is fed back into the research institutes. ­METRO GROUP supports
several trade research institutes.
RETENTION PERIOD The time a customer spends in a store. Upmarket product-oriented single-line retail and department stores attempt to increase the retention period of
customers in their stores. To do so, they develop attractive and varied product presen­
tations, programmes to guide customers through the store and special service and relaxation zones, such as coffee bars. Hypermarkets (German “SB-Warenhaus”), superstores
(German “Verbrauchermärkte”) and discounters normally design their selling space in a
way to enable customers to buy quickly and comfortably. The customer finds the product,
is quickly guided through the store by means of a customer guidance system and can
promptly pay and leave the store.
RETURN ORIENTATION A corporate strategy geared towards maximising returns.
Return describes the annual total income from the capital employed by a company.
REVENUE Also sales. Income from all goods and services sold by a company during
a set period of time. The retail sector normally sells food and non-food products. Sales
are measured in terms of quantity (quantity turnover) or in terms of a monetary unit
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GLOSSARY / Revenue size categories
such as euros (revenue on a value basis). Discounts granted to buyers or income from
deposits are not included. The revenue of a retail company is not only measured for certain
periods (day, week, month, season, year), but also for outlets, departments or individual
merchan­dise groups and articles.
REVENUE SIZE CATEGORIES Classification measure used for statistical purposes.
Based on their annual revenues, companies of an industry sector are classified into
different revenue size categories. The German Federal Statistical Office in Wiesbaden
distinguishes between the following five revenue size categories for retailers (excluding
automotive sector and petrol stations). The figures in brackets show the share of total
German retail revenues for the specific revenue size category (source: Federal Statistical
Office, 2012).
I. Below €1 million (12.0%)
II. €1 million to €2 million (6.7%)
III.€2 million to €5 million (10.2%)
IV. €5 million to €10 million (7.1%)
V. €10 million and above (64%)
About 1 per cent of the companies generate almost two thirds of the total sales in Germany.
S
SALES The quantity of goods sold by a company during a set period of time. In retail,
the term “sales” describes the volume of merchandise sold. The monetary value of the
quantity sold is described as revenue. It is the result of quantity multiplied by price. In a
broader sense, the term “sales” is used in the retail industry to cover all activities geared
toward the sale of merchandise to customers. Sales policy tools include, for example,
marketing campaigns that promote sales, such as special offers and specific marketing
events. See also merchandising.
SALES BRAND Self-contained market identity, independent of the parent brand, which
a distribution company uses to promote and sell its products. For instance, the sales
brands Media Markt and Saturn operate independently of each other.
SALES CHANNEL Also referred to as distribution channel or marketing channel. The
sales channel is the route chosen by producers and retail companies to sell or distribute merchandise. Sales channels for manufacturers of branded products include
direct selling through own-brand stores, department stores, speciality stores and
dis­counters in stationary retail or mail-order business and online shopping portals
in non-stationary retail. A retail company chooses and prioritises sales channels in the
context of its sales routing policy. The following factors determine the selection of the
sales channel:
>> the product,
>> the target group,
>> the company’s own market position,
>> the company’s competitive environment.
SALES FORMAT The way in which a company markets its products. This covers various
merchandising concepts, such as single-line retail and cash-and-carry. Sales formats
can be geared towards a particular target group and focus on various sales channels.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Seasonal sale
For example, stationary retail offers different opportunities to the pure play format,
which is used by companies such as the online retailer Redcoon. Permanently improving
sales formats can enhance sales brands and attract new customers.
SALES LINE An entity of a retail company that operates outlets or stores with a specific
merchandising concept. At ­METRO GROUP, for example, four sales lines with specific
merchandising concepts are independently active in their markets and comprise wholesaling, various forms of food and consumer goods retail as well as speciality stores in
growth-relevant fields like electrical appliances.
SALES PROMOTION A sales policy instrument for the purpose of offering customers
something special and thus enhancing customer frequency and retention. A sales promotion in commerce is a special offer or the realisation of sales supporting activities to
attract the public to the point of sale (POS). A “2-for-1” action, for example, has this effect.
Other typical sales promotions are prize competitions that are advertised in the selling
space or a fashion show with a champagne reception for key customers. Sales promotions
are often organised by a store in cooperation with brand-name manufacturers.
SALES TAX Generally referred to as value added tax (VAT). Consumption tax levied on
goods and services. Besides the wage tax, it is the most important source of income
for the public sector in Germany. Sales tax is levied on sales at every stage of the value
chain, from the raw materials supplier through the producer, wholesaler and retailer to
the consumer. The system is set up in such a way that, in the end, only the consumer is
charged with value added or sales tax. Entrepreneurial consumption, use or trading on
company level are tax-neutral. The value added or sales tax collected by a retail company
on merchandise sold would normally have to be fully remitted to the tax office. However,
the retail company can separately deduct the turnover tax charged to it by its suppliers
from the value added tax it collects (pursuant to §15 UStG [German VAT Act]: input tax
deduction). If the difference is positive, the retail company must remit the difference to
the tax office. If the difference is negative, the tax office will refund the difference amount
as input tax to the retail company.
SAME-DAY DELIVERY Same-day delivery combines the convenience of online shopping
with the immediate product availability of stationary retailing. According to a recent study
by McKinsey, the market in Western Europe will grow to around €3 billion and have a 15 per
cent share of standard parcel revenue by 2020. Same-day delivery currently has a 1 per
cent share of this revenue.
SCANNER An electro-optical device through which signs, images and characters may
be read into a computer. The main function of a scanner in stores is to read the barcode
without manual input. The scanner senses the signs using a light beam and converts
them into electrical signals. A merchandise management system connected to the
scanner transforms the data contained in the barcode into information, for example,
product names or prices. Scanners simplify and accelerate the checkout process in retail
stores and the input of the products for merchandise management.
SEASONAL SALE A clearance sale of merchandise at reduced prices (end of season
sales, such as the summer and winter sales). With the amendment of Germany’s Unfair
Competition Law (UWG) in July 2004, these limitations were abolished. As a result, retail
companies are now able to determine the most convenient time to clear their stocks by
offering merchandise at reduced prices.
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GLOSSARY / Self-checkout
SELF-CHECKOUT A partly automatic checkout counter at which customers can pay for
merchandise in the absence of checkout personnel. The customers scan the products,
place them in a bag and pay directly at the automatic checkout. They may pay cash or by
debit/credit card. ­METRO GROUP was one of the first retail and wholesale companies
in Europe to use self-checkouts at its then so-called Future Store. Today, self-checkouts
are used at numerous Real hypermarkets. Another version of this technology is the
express self-checkout, where shopping is scanned at one terminal and payment is made
at another. First, the customers scan the barcodes on their purchases or ask a member
of staff to scan them. They then receive a slip, which they take to the payment terminal.
There, they choose whether to pay by cash or card. As there are more payment terminals
than express self-checkouts with article scanners, customers can pay at their own pace,
without feeling pressurised by the next customer waiting in the queue. This system also
guarantees greater privacy, for example, when entering a PIN. Self-checkouts are also in
service at certain Real stores.
SELF-SERVICE Selling mode in the retail industry and wholesale industry in which
customers find and select the desired merchandise in the store and bring it to the checkout without the assistance of store personnel. Self-service is practiced in cash-and-carry,
at hypermarkets and at discounters. Speciality stores and department stores also have
areas where the customers serve themselves. See also self-checkout.
SELLING SPACE PRODUCTIVITY Also referred to as space performance or area prod­
uctivity. This describes the turnover of a retail company in relation to the selling space
or store space. As a business management parameter, selling space productivity is
expressed in sales per square metre. On the basis of selling space productivity, a retail
company steers internal processes such as purchasing, staff manpower planning or
visual merchandising.
SERIAL SHIPPING CONTAINER CODE (SSCC) Worldwide identification number for
shipping and transport units such as pallets, boxes or goods transported on hangers (as
is customary in the garment industry). The SSCC is a GS1 standard. It is composed of
an international basic number that is issued by GS1 or one of its member organisations
and the manufacturer’s serial numbers. With the SSCC, each shipping unit in the process
chain can be identified. The number is contained in a barcode on the transport container and can be read with a scanner. Thanks to the SSCC, the route taken by the goods
from the manufacturer through to the retailer can be traced at any time. The SSCC is
particularly useful for the electronic exchange of data (electronic data interchange, EDI)
between the supplier and the retailer. The electronic transfer of the number accelerates
the processes of goods receipt and storage management. ­METRO GROUP has used the
SSCC for electronic data interchange since 2003.
SERVICE Used to describe goods whose production and consumption occur simultan­
eously. The classic example of a service is a visit to the hairdresser. The substance of a
service is always non-material: it can be neither stored nor transported.
SHELF MANAGEMENT A concept for optimising the refilling of shelf systems in stores.
The functions of shelf management include, for example, the elaboration of shelf plans
with product images, safeguarding the complete product range, and sorting out and
reducing fresh produce articles with expired best-before dates or that are shortly before
expiry.
SHOP LOYALTY Occurs when a customer visits the same store repeatedly or prefers to
buy in a certain shop, for example, a speciality store or chain store company. The reasons
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Shopping behaviour
for such loyalty can include: an appealing product range, a good price-performance
ratio, easy orientation in the store, a pleasant atmosphere, good assistance or accessibility.
Retail companies seek to increase shop loyalty by measures of customer retention such
as the Payback programme, in which, among other companies, the ­METRO GROUP sales
line Real participates.
SHOP-IN-SHOP CONCEPT A way to present partial assortments in the retail business.
Large-area retail centres, such as hypermarkets and department stores, frequently
integrate well-known brand-name manufacturers into their selling space using a shopin-shop arrangement. At the brand stores, the articles of a brand-name manufacturer
are combined in one area, distinguishing them from the rest of the selling space by the
merchandise carrier and the kind of merchandise presentation. Brand shops are typically
managed by the brand-name manufacturers themselves. Aside from brand shops, there
are partial assortments defined by the retail companies themselves, such as “books”
or “kids’ corner” that are presented as a shop-in-shop. The purpose of the concept is to
sharpen the profile of a brand and of the store.
SHOPLIFTING The unlawful appropriation of merchandise by customers or staff. The
annual loss of merchandise in the retail sector is estimated at about one per cent of the
sector’s total sales. The use of electronic article surveillance (EAS) can help the retail
industry reduce the theft rate.
SHOPPER MARKETING Shopper marketing refers to the knowledge of the target customer’s behaviour as a shopper in a variety of channels or formats as well as to the way
in which this knowledge is used effectively for the benefit of all stakeholders (manu­
facturers, retailers and consumers). Shopper marketing focuses on the shopping situations
in which consumers find themselves while visiting stores or shops, on consumers’ relation­
ships with the product, and on in-store presentation. Ideally, shopper marketing forms part
of a successfully integrated marketing strategy. In addition, shopper marketing is a decisive
factor in the partnership between retailers and manufacturers. Common strategies orien­ted
toward the interests of the consumer open up great opportunities for customer retention.
This is the basis for the long-term success of both business partners.
SHOPPING ARCADE A network of retailers and service providers from a wide variety of
industries that occupies a large area created by the architectural fusion of two or more
streets with high traffic and pedestrian densities. Shopping arcades are covered. They are
built at central locations in large and medium-sized cities. The purpose is to invite consumers to stroll and stay by virtue of a multifaceted offering of event shopping and restaur­
ants (see also one-stop shopping). Examples include Galleria Vittorio Emanuele II in
Milan, Passage Jouffroy in Paris, Burlington Arcade in London and Kö-Galerie in Düsseldorf.
SHOPPING BEHAVIOUR A customer’s buying habits. Retail companies track and analyse
these with the aim of tailoring product portfolios and services to the individual needs of
particular target groups. There are different aspects to shopping behaviour:
>> The qualitative aspect: which merchandise is purchased?
>> The quantitative aspect: how many products are purchased?
>> The local aspect: which outlet is visited?
>> The personal aspect: which family member does the shopping?
>> The temporal aspect: when is the shopping done, how often, and how long does it take?
As a rule, professional market research institutes track shopping behaviour and sell
these data to retail companies for their strategic planning. Major retail and wholesale
companies such as ­METRO GROUP also have their own data, which are stored at the
group’s data warehouse and processed to enable analysis. See also retail panel.
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GLOSSARY / Shopping centre
SHOPPING CENTRE Also speciality centre. A naturally evolved or planned local concentration of retailers and service providers of different kinds and sizes. Specially planned
shopping centres can be found on the outskirts of cities as well as in city centres, although the current trend suggests an increasing focus on inner-city locations. Most
major shopping centres are created in the context of urban redevelopment projects or
the adaptation of existing areas, such as railway stations and department stores. In the
case of greenfield projects, investors may use abandoned industrial sites and former
military airports or barracks. Whether the site is referred to as a shopping centre or a
speciality centre depends on the mix of sectors and the location. Speciality centres tend
to be located on the outskirts of cities and are oriented towards the local supply of goods
for everyday needs, whereas shopping centres are usually located in inner-city areas and
characterised by companies from the textiles sector. METRO PROPERTIES, the group’s
real estate company, manages MEC METRO-ECE Centermanagement GmbH & Co. KG
(MEC) as a joint venture with the Hamburg-based company ECE. MEC is a leading centre
management company for speciality centres in Germany, and operates 43 shopping centres in partnership with about 870 tenants. METRO PROPERTIES also operates shopping
centres in Poland and Turkey, where ­METRO GROUP is represented with its sales brands
Media Markt, Saturn and Real.
SINGLE-LINE RETAIL A general term for speciality stores specialising in defined lines,
areas or demand groups (demand). They distinguish themselves through a specific range
of goods (e.g., sportswear and sporting goods) and by offering qualified advice through
expert staff. Examples of this are textile speciality retailers and spirits speciality retailers.
See also retail.
SMART BUDGET FAMILY A family with a limited available household income. Such
f­ am­ilies pay particularly close attention to special offers.
SMART SCALES A weighing system for fruit and vegetables equipped with a special
camera and identification software. The scales automatically recognise the product on
the basis of its colour and form, weigh it and then print out the price tag. The innovative
retail technology was tested at the then ­METRO GROUP Future Store in Rheinberg.
SMART SHELF A store shelf that uses radio frequency identification (RFID) to automatically determine when a product has been removed or incorrectly placed. This advance is
made possible by a special reader built into the shelf that can read the RFID transponders
on the product packaging. The shelf automatically transmits the information to a central
computer system. Thanks to this innovative technology, employees can restock the shelf
in a timely manner and prevent impending stock-outs. This system can also automatically
track the expiry dates of food.
SMART SHOPPER A customer who aims to buy quality goods at the lowest possible
price, in contrast to the hybrid customer, whose shopping behaviour changes depending
on the situation. The smart shopper searches for the ideal price-performance ratio. He
or she spends a lot of time making a decision and selectively makes use of special offers.
The internet and the common European currency enable this group of consumers to
make a quicker price comparison.
SPECIAL OFFER A comparatively low or reduced price for a product which is highlighted by
advertising. A special offer normally lasts for a limited time. It is a sales policy instrument
that serves to promote sales.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Stock-keeping unit (SKU)
SPECIALITY MARKET A retail store with a large retail area that offers a broad and frequently
deep assortment from a particular merchandise area (e.g., a clothing speciality market, a
shoe speciality market), from a demand area (e.g.: a sports speciality market, a baby special­
ity market; see also demand) or a target group area (e.g., a market for people who prefer
furniture made of natural materials) in a well-designed setting. One characteristic feature of
speciality market is their large share of self-service assortments. Sufficient parking is often
a key consideration in the choice of location. City centre locations are preferred by some
assortments (e.g., speciality drugstores). With its Media Markt and Saturn sales brands,
­METRO GROUP is Europe’s leading operator of consumer electronics stores.
SPECIALITY STORE A retail store offering a one-line or demand-group-oriented assortment, whose selection is varied and has different qualities and price ranges with
supplementary services. Examples of such a store include speciality stores for consumer
electronics or clothing. Examples of special services are an assembly service or a printing service for notepaper or business cards. Another characteristic of speciality stores
is that they have well-trained, specialised personnel who advise customers. See also
speciality market.
START-UP A recently established business in the first stage of a company’s life cycle.
Start-ups are also hallmarked by a high degree of innovativeness and above-average
growth potential.
STATIONARY RETAIL A generic term for retailing facilities with a fixed location. Typical
merchandising forms in stationary retail are the hypermarket (German “SB-Warenhaus”), the superstore (German “Verbrauchermarkt”), single-line retail, the speciality
market, the department store, the supermarket (German “Supermarkt”) and the discounter. Depending on the organisational form, stationary retail is characterised by
face-to-face customer service with trained store personnel. In contrast, non-stationary
retail is characterised by the use of mobile stalls, weekly markets and agent trade as
merchandising platforms (see also itinerant retail). Mail-order business and e-commerce
are also forms of non-stationary retail. The non-stationary retail system benefits from
low rents and personnel expenses because it does not maintain outlets in actual shopping districts. However, it has to rely on efficient logistics to ensure that the ordered
merchandise is delivered to the customers quickly and reliably. The sales brands of
­METRO GROUP, METRO Cash & Carry, MAKRO Cash & Carry, Media Markt, Saturn and
Real are stationary retail companies whose online shops are in part closely dovetailed
with their stationary business (multichannel retailing).
STOCK OF INVENTORY Also: warehouse stock. The sum of all available merchandise
in a company or a division with regards to quantity and/or value. In retail companies, for
example, the merchandise destined for retail in the warehouse of a store or a central
interim storage facility. The stock of inventory is managed using purchasing planning
(see also purchasing) as well as the control of the rate of stock turnover. The stock of
inventory has to be determined at the end of the business year (inventory) and evaluated
(inventory evaluation).
STOCK-KEEPING UNIT (SKU) An SKU is an article in a warehouse which can be unmistakably identified by an additional numbering (e.g., Coca-Cola 2l #111). The SKU is an
item in inventory registration and planning. Several SKUs may be allocated to one article
if several varieties of such an item are in stock in place of a standard article or if the
same article is in stock at several warehousing locations (central warehouse, regional
warehouses, distribution warehouses, etc.).
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GLOSSARY / Store check
STORE CHECK A review of merchandise presentation and store layout with a view to
attractiveness and convenience for customers. Store checks in commerce serve to set
benchmarks. Market research institutes are frequently commissioned to assess the
assortment and merchandising of best-practice examples. The results are used to
­determine the optimisation potential for a company’s own sales lines. Brand name
manufacturers also carry out store checks in order to verify the quality of presentation
and the environment in which their products are offered.
STORE OPENING HOURS The times of day during which a store sells merchandise to
customers. In Germany, store opening hours are governed by the Shop Closing Hours Act.
This law sets limits within which wholesalers and retailers may freely select their own
store opening hours from a business perspective. According to the Shop Closing Hours
Act of 28 November 1956, which was last amended on 16 November 2006, points of sale
for transactions with customers – for example, supermarkets or department stores –
may open from Monday to Saturday, from midnight until midnight. On 24 December, selling is allowed from midnight until 2:00 p.m. on workdays. There are different regulations
for Sunday business in the various federal states of Germany. In most cases, shops may
open for four Sundays a year. Different provisions of the Shop Closing Hours Act apply to
pharmacies, vending machines, railway stations, airports and petrol stations. The latter
may be open around the clock on all days, but may theoretically only sell fuel, spare parts
and travellers’ necessities.
SUBSIDY Subsidies are public funds made available in particular to private businesses.
The government grants subsidies either directly by providing financial assistance or indirectly, for example, in the form of tax relief, without requiring any kind of free market
consideration. Subsidies serve to, for example, make manufactured goods cheaper for
consumers or cheaper to export and often come with certain conditions and behaviour
expectations.
SUPERMARKET (German “Supermarkt”) A retail store with a selling space of 400 square
metres and more offering food and luxury goods, including fresh fruit, greens, meat, fish
and dairy products, and complementary short-term merchandise from other industry
sectors mainly in the self-service mode. The assortment of a supermarket comprises
about 7,000 to 12,000 articles, the share of the space for non-food items is usually limit­
ed to 25 per cent of the overall selling space. Today, supermarkets have taken on the
function of the neighbourhood store. If the selling space covers at least 1,500 square
metres, the stores are referred to as superstores (German “Verbrauchermärkte”), and
from 5,000 square metres as hypermarkets (German “SB-Warenhäuser”).
SUPERSTORE (German “Verbrauchermarkt”) Retail store with a floor space of at least
1,500 square metres that offers food as well as consumer durables and consumable
goods for short-to–medium-term consumption, mainly for self-service. The assortment
comprises between 21,000 and 40,000 articles, which is significantly more than a normal
supermarket or discounter.
SUPPLIER A producer or wholesaler from whom a retail company buys merchandise.
The supplier must ensure that the merchandise ordered by the retail company is available in kind and quantity at the right time and place. Food suppliers commissioned by
­METRO GROUP to produce trademark brands (see also private labels) must undergo a
strict testing procedure known as the supplier audit before taking up business relations.
This procedure is part of ­METRO GROUP’s quality assurance.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Systems for returnable packaging
SUPPLIER AUDIT A strict testing procedure for choosing and assessing suppliers. At
­ ETRO GROUP, all suppliers who are commissioned to produce METRO’s own-brand
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products must, in line with this testing procedure, provide evidence that they are perman­
ently in a position to meet the high quality requirements of ­METRO GROUP. Not every
producer or supplier seeking to enter into business relations with ­METRO GROUP is able
to clear these hurdles.
SUPPLY CHAIN Also stream of merchandise. The path that merchandise takes from the
producer to the retailer via a distributor or intermediate storage site. The planning and
monitoring of the supply chain is called logistics. The retail sector strives to keep the
supply chain as short as possible and to optimise the timeliness and quality of deliveries
(e.g., adherence to the cold chain). Lawmakers have also created clear requirements
aimed at making the supply chain transparent: since 1 January 2005, the EU regulation
178/2002 has required the traceability of food and animal feed to be guaranteed through
all production, processing and sales steps. An innovative technology that considerably
improves the efficiency of planning and monitoring the supply chain is radio frequency
identification (RFID). See also value chain.
SUPPLY CHAIN MANAGEMENT The planning, steering and control of the route taken
by the merchandise from the supplier to the customer. Stages on the route include the
production sites of manufacturers, the central warehouse of the wholesaler or retailer
and the department store or market. By applying radio frequency identification (RFID),
merchandise movements and accounting entries can be registered and documented
automatically.
SUSTAINABILITY The guiding principle of national economies, organisations and companies seeking to meet current demand without adversely affecting the quality of life of
future generations. In 1998, the Commission of Inquiry of the 13th German Bundestag on
the Protection of Mankind and of the Environment identified three dimensions of sustain­
able development: ecological, economic and social issues (triple bottom line). The German
term for sustainability was coined in the German forestry industry in the 18th century.
The foresters only cut as much timber as would grow again within a particular time
period. For the economy, sustainable action now means the recognition of an extended
entrepreneurial responsibility for the needs of society and the environment (corporate
responsibility). In its corporate strategy, which is geared towards long-term positive
sales and earnings development, ­METRO GROUP sees sustainable business practices as
an integrated approach. Sustainability in this regard means bringing economic growth
targets in line with ecological and social requirements, and influencing all processes
relevant to sustainability. To do this, ­METRO GROUP has defined four clear fields of action
along the entire value chain:
>> Procurement, production, processing
>> Transport, storage, store
>> Customer
>> Waste management
>> Social commitment (see also good corporate citizenship)
SYSTEMS FOR RETURNABLE PACKAGING Collection and reuse of packaging in the
stores after it has been cleaned and refilled. These systems are developed by politics and
the economy. Their stated goal is to avoid waste, mainly in the beverage sector. The system
centres around the intensive use of returnable packaging (e.g., beverage bottles, bottle
crates, yogurt jars). The system requires the appropriate infrastructure, including
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GLOSSARY / Tare
suitable collection, storage and cleaning systems. In order to motivate consumers to
return the packaging, stores charge a deposit, which is refunded as soon as the
customer returns the packaging to the store.
T
TARE The weight of product packaging, such as of an empty bottle or an empty box. By
subtracting the tare from the gross weight (gross), the net weight (net), meaning the
actual weight of the product, is obtained.
TARGET GROUP All existing and potential customers who are addressed by a company
through a product, a sales format, a merchandising concept or a defined marketing
activity. Market segmentation is the basis for determining target groups using relevant
characteristics. The main problem is that target groups are unstable over time (dynamism), which means that the target group is constantly changing. Target groups can be
defined by the following criteria:
>> Sociodemographic characteristics (such as age, sex or education);
>> Behaviour-oriented characteristics (such as intensive users or first buyers);
>> Psychological characteristics (such as innovative or safety-oriented);
>> Media-oriented characteristics (such as newspaper readers or internet users).
The so-called Outfit Study of the Spiegel publishing group, for example, draws on sociodemographic as well as psychological characteristics in order to divide the population in
Germany into target groups, such as “the individualist” or “the conservative”. However,
consumers of today do not always act in the same way, meaning that the process of
div­iding customers into customer groups or target groups involves an ever-increasing
number of approaches, such as sentiment marketing, for example. Sentiment marketing
takes account of the facts that consumers have a great many facets to their personalities
and that they show different patterns of behaviour in different circumstances and situ­
ations. See also hybrid customer.
TEST MARKET A regionally limited submarket or sales market in which retail companies
test consumer acceptance before introducing new products, services, technologies or
store types. Test markets must offer a representative mixture with respect to the popu­
lation, the economy, the competitive situation and retail structures. They should also
feature a clear local delimitation from the other catchment areas. From 2003 to 2007,
­METRO GROUP tested technologies for an exceptional shopping experience in the Future
Store in Rheinberg, before these were implemented across the country. From 2008 to
2013, various innovations were tested at the Future Store in Tönisvorst, including new
assortment concepts and modern technologies.
THEME RETAIL A way of designing stores and presenting merchandise that responds
to consumers’ increasing leisure time and entertainment orientation. For example, companies such as department stores or speciality stores are increasingly using special
lighting, colour, music or interactive elements – such as the opportunity to test a golf club
right in the store – in order to create special theme worlds. The aim is to extend the retention period of customers in the store, to promote impulse buying and to strengthen customer loyalty through outstanding service. The various sales brands of M
­ ETRO GROUP
employ a theme-oriented presentation of merchandise in many parts of their stores.
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / TV shopping
TRADE CONTROLLING The target-oriented coordination of information to plan and
monitor functional divisions of a retail company and to prepare management decisions.
Key tasks include setting up and regularly updating the necessary information systems,
supplying the management with the relevant information and supporting the management in planning, monitoring and controlling with appropriately prepared and presented
key data. A retail company obtains the relevant data for effective controlling from inhouse material such as budget specifications (budgeting in retail) and from external
sources of information such as official statistics or benchmarking results.
TRADEMARK BRAND Protected trademark issued by a large retail organisation. Retailers
that “brand” certain products themselves (i.e., give them an unmistakable outer appearance
for marketing purposes) create a trademark brand. The brand can have a name, a logo,
a combination of both or a special packaging form or colour as its distinguishing mark. It
is owned by the retail company. Other terms frequently used for trademarks are private
label/own-brand product. See also brand products.
TRADING-UP STRATEGY A qualitative increase in the service range of a retail operation,
for instance, by broadening the product palette, raising the quality level, or providing
more extensive services and more appealing shop fixtures and furnishings.
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TRAFFIC LIGHT SYSTEM A nutrition labelling system. Colour coding on the front of food
packaging shows consumers the most important nutritional information per 100 grams.
The system displays the levels of fat, saturated fatty acids, sugar and salt contained in the
food. Green stands for low, yellow indicates medium and red represents high levels. Taking fat as an example: green corresponds to contents of up to 3 grams, yellow stands for
3 to 20 grams, and red indicates over 20 grams. Unlike real traffic lights, red does not
mean “stop”: it is merely intended to show consumers that they should eat certain foods
in moderation. The traffic light system was developed by the British Food Standards
Agency (FSA). Its use is voluntary. On the other hand, a summary table is now mandatory according to the new Food Labelling Regulation (Lebensmittelkennzeichnungs­verordnung;
see food labelling). The traffic light system has attracted a number of criticisms, including the lack of a scientific basis for establishing the thresholds and the fact that a healthy,
balanced diet cannot be defined using individual foods. Germany’s Federal Ministry of
Food and Agriculture (BMEL) therefore recommends that companies use the “1 plus 4”
model for food labelling.
TRANSPORT LOGISTICS All activities relating to the transport of articles and unit loads
within the scope of merchandise flow management (logistics). By pooling logistics services, retail companies may realise substantial service and cost advantages because the
number of delivery processes at the loading ramps and the warehousing costs can be
reduced. At ­METRO GROUP, METRO LOGISTICS is responsible for the logistics on behalf
of all sales lines in Germany and the comprehensive international logistics activities.
TRIPLE BOTTOM LINE Traditionally, the bottom line refers to the financial result or
profit generated by a company. By contrast, the triple bottom line expresses a company’s
success in wider economic, social and ecological terms. It is a way of showing that a
company acts sustainably and offers value added for investors, staff and the society as
a whole. The triple bottom line is usually documented in a company’s annual report or
sustainability report.
TV SHOPPING A method for selling goods to consumers in which at least the presen­
tation of goods is done via television. A distinction is made here between traditional and
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GLOSSARY / Uniform Code Council (UCC)
interactive TV shopping according to the level of interactivity of the presentation. In trad­
itional TV shopping, products are shown to the customer on the television through commercials or sales shows. These products can be ordered through a displayed telephone
number or address. Interactive TV shopping describes the part of teleshopping that takes
place through interactive television. Modern interactive TV concepts often use functions
of the home network and support new devices like tablets and smartphones.
U
UNIFORM CODE COUNCIL (UCC) See GS1 US.
UNIQUE SELLING PROPOSITION (USP) A unique selling point that sets a product or
brand apart and therefore gives it a competitive edge. Companies highlight their USP
in communications so as to position their products/services as the best on the market.
A USP could be a low price, a specific feature of the product or service, but also an ex­
clusive image or the price-performance ratio.
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)
Per­manent body of the United Nations since 1964. The 194 member states, including
Germany, work to strengthen the economy in developing countries and cautiously integrate them into the global trading system. The resolutions of UNCTAD have the character of a recommendation. In the Least Developed Countries report, which is published
every one to two years, UNCTAD analyses the relationship between poverty, development and globalisation in d
­ eveloping countries such as Bangladesh, Ethiopia or Sudan.
On this basis, UNCTAD delineates alternative strategies on how retail can be used to
reduce poverty in those countries.
UPSELLING Actively offering a product that is of better quality or more expensive than
the one the customer originally requested – for example, suggesting champagne rather
than prosecco. Successful upselling depends on advice that is tailored to the customer’s
needs. Product demonstrations can be an effective tool. The aim of upselling is to further
capitalise on existing sales potential. See also cross-selling.
V
VALUE ADDED In macroeconomic accounting, this term describes the real net output
achieved in the individual economic sectors. In business management, value added
expresses a company’s productive capacity. The value added of a retail company is meas­
ured by total net revenues from which the factor input is deducted. The factor input
includes the performance of the upstream production stages (suppliers, logistics service
providers, etc.) and, for example, expenses for personnel, IT and checkout systems.
VALUE ADDED TAX See sales tax.
VALUE CHAIN In retail, also supply chain. Describes the architecture of value added in
different stages of activity. Each of these offers an opportunity for differentiation and
makes a contribution to the relative cost position of a company in competition. In gen-
METRO RETAIL COMPENDIUM 2015/2016
GLOSSARY / Wholesale store
eral, nine fields of activity are distinguished along the value chain. The primary fields of
activity are input logistics, production (not applicable to retail companies), output logistics, marketing and sales, and service. The supporting fields of activity are corporate
infrastructure, personnel management, technology management, procurement. Typical
areas for optimising the value chain of retail companies include logistics and procurement. By means of improved process flows in these areas, for example, the availabi­lity of
merchandise can be improved, warehousing costs reduced or part of the procurement
can be automatically executed on the basis of efficient merchandise management systems.
VALUE-ORIENTED MANAGEMENT A corporate policy which is designed to sustainably
increase the economic value of a company. To this end, a retail company continuously
improves its business processes such as procurement or merchandise management.
The consequence of this process optimisation can be decreasing operating costs and/or
increasing revenues.
VISUAL MERCHANDISING Product presentation at the point of sale (POS). The object­
ive of visual merchandising is, on the one hand, to facilitate orientation and goods selection for customers. On the other hand, visual merchandising triggers buying impulses
without requiring the activity of a shop assistant. Optical aids such as large ambiance
posters or electronic advertising displays (see also digital in-store communication)
are deliberately deployed to arouse emotions or highlight the benefit of a product. At
every sales line of M
­ ETRO GROUP, a specialist team of visual merchandisers develops
standard­ised presentation concepts for the outlets and stores of the group.
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WEIGHTED AVERAGE COST OF CAPITAL (WACC) This approach is one of the standard
capital valuation methods and is used for company valuations. Company valuations can
be particularly important, for instance, when a company is about to be sold or go public (initial public offering, IPO). The WACC describes the average weighted costs that a
company must invest in capital. These consist of the average costs for debt capital (e.g.,
interest on a loan) and the average costs for equity capital (dividend payouts and taxes =
imputed interest). The weighting of equity capital and debt capital in the WACC calculation
is made in accordance with their proportion of the total capital of the company.
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WHOLESALE INDUSTRY A trading form where, in contrast to retailing, the merchandise is
not sold to consumers, but to commercial resellers (e.g., the retail industry), downstream
processors or commercial users (e.g., authorities or caterers). A distinction is made between
industrial B2B trade and consumer goods wholesale trade. In institutional terms, the
wholesale industry also describes the entirety of all companies conducting wholesale.
See also retail and cash-and-carry.
R
WHOLESALE STORE A location where a multitude of suppliers sell certain goods,
­ ssentially to commercial resellers (e.g., the retail industry), commercial consumers or
e
large-scale buyers (e.g., market gardens). Wholesale stores typically trade in perishable
produce such as fruit and vegetables, meat, fish and flowers. See also cash-and-carry
and wholesale industry.
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GLOSSARY / Wholesale trade with service
WHOLESALE TRADE WITH SERVICE The conventional form of wholesale trade (see
wholesale industry). Unlike in cash-and-carry stores, merchandise is handed out by
sales staff. Most wholesale fruit, vegetable and fish stores are organised on the service
principle.
WORLD TRADE ORGANIZATION (WTO) Special organisation of the United Nations,
founded in 1995 as the successor to GATT (General Agreement on Tariffs and Trade).
In 1948, GATT came into force as an international agreement to dismantle customs
and trade barriers and standardise customs and trade practices to facilitate economic
relations among countries. The Federal Republic of Germany signed this agreement
in 1950. The WTO, based in Geneva, has more authority than GATT; it controls member
states’ compliance with its rules, oversees their national trade policy and acts as a
­mediator in the event of trade conflicts between the member states. The WTO has
comprehensive legislative, judicial and executive rights. The national member states
must harmonise their national rules and bilateral agreements with WTO regulations.
The WTO has 160 members. Its main bodies are the Conference of Ministers and the
General Council.
METRO RETAIL COMPENDIUM 2015/2016
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RETAIL COMPANIES AS EMPLOYERS
www.metro-retailcompendium.de/en/retail-as-employer/
METRO RETAIL COMPENDIUM 2015/2016
RETAIL COMPANIES AS EMPLOYERS
243
RETAIL
COMPANIES
AS
EMPLOYERS
244
EMPLOYEES IN RETAIL
246
OCCUPATIONS IN RETAIL
© METRO AG 2015
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RETAIL COMPANIES AS EMPLOYERS / EMPLOYEES IN RETAIL / GERMANY
EMPLOYEES IN RETAIL
IN THOUSANDS
GERMANY
2,956
2,972
2,925
1,685
1,843
1,799
62.0%
57.0%
61.5%
1,912
1,894
1,910
1,271
1,128
1,126
38.0%
2012
38.5%
2013
2014
RETAIL 1 WHOLESALE 2
PART-TIME
FULL-TIME
Closing date 31 March
2 Annual average
1 METRO RETAIL COMPENDIUM 2015/2016
Sources: BGA, HDE
43.0%
RETAIL COMPANIES AS EMPLOYERS / EMPLOYEES IN RETAIL / EUROPE (EU-27)
245
EMPLOYEES IN RETAIL1
IN THOUSANDS
EUROPE (EU-27)
7,331
6,978
2012
18,660
18,572
18,526
2013
7,227
2014
Source: Eurostat
RETAIL WHOLESALE
¹ Except the automotive sector
© METRO AG 2015
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RETAIL COMPANIES AS EMPLOYERS / OCCUPATIONS IN RETAIL / GERMANY’S DUAL VOCATIONAL TRAINING
SYSTEM / ALLIANCE FOR INITIAL AND FURTHER TRAINING
OCCUPATIONS IN RETAIL
The retail and wholesale sector is one of the biggest employers and providers of
training in Germany. More than four million individuals are employed in the German
retail sector, among them some 175,000 trainees and apprentices. The most
important skilled occupation in the retail sector is that of “Kaufmann / Kauffrau im
Einzelhandel” (retail sales assistant). About 26,500 people started training for this
occupation in 2014. This influx of new trainees made it the most popular vocational
course in Germany. With around 25,200 new trainees, “Verkäufer / Verkäuferin”
(salesperson) was the second most popular skilled occupation. In total, around
70,000 young workers began their vocational training in retail in 2014.
A look at Europe reveals the economic importance of the retail and wholesale
­sector: more than 30 million people work for over six million retail and whole­
sale companies within the European Union, making the sector one of the most
important employers in Europe. Hardly any other industry can offer such a
­diverse range of career paths and responsibilities.
As one of the most important retail and wholesale companies in the world,
METRO GROUP offers its employees a wide range of career opportunities in
Germany and abroad. Be it by providing training or promoting international manage­
ment talent – METRO GROUP certainly fulfils its claim of being an international
talent factory for young and aspiring professionals in the retail sector.
1. GERMANY’S DUAL VOCATIONAL TRAINING SYSTEM
The dual vocational training programme is carried out in two settings: in a company
and at the vocational school. Three to four days per week, the trainees receive
hands-on training within a company; one to two days a week, they attend classes at
the school. The dual vocational training system is also available in Austria and Switzer­
land. One thing these systems all have in common is the concept of “vocational
­readiness” – this term supports our claim to fully provide trainees with the vocational
knowledge, skills and competencies necessary for their profession and to teach
them how to put their skills to practice. The school-based theoretical training is sup­
plemented by a direct transfer into practice. In neighbouring EU countries, vocational
basics are usually taught using an instructional setting. Short internships at com­
panies only give a rough glimpse into their operations.
2. ALLIANCE FOR INITIAL AND FURTHER TRAINING
On 12 December 2014, the German Federal Government, along with representatives
from business, unions and Germany’s federal states, adopted the 2015–2018 Alliance
for Initial and Further Training.
The agreement replaced the National Pact for Training and Skilled Recruits, which
expired at the end of 2014.
The partners will work together to strengthen the dual vocational training system in
Germany and to promote equality in vocational and academic training programmes.
Vocational training programmes have clear precedence within the project.
METRO RETAIL COMPENDIUM 2015/2016
RETAIL COMPANIES AS EMPLOYERS / OCCUPATIONS IN RETAIL / CONTINUING PROFESSIONAL DEVELOPMENT
(CPD) AND ADVANCED QUALIFICATIONS IN RETAIL
247
The partners have cooperated to define strategic areas for action and agreed on
measures. These focus on the following:
>Significantly increasing the importance and attractiveness of vocational training in
Germany;
>Further reducing the number of students that leave school without formal qualifi­
cations;
>Demonstrating to those interested in completing training – within the context of
the guarantees specified in the coalition agreement – the shortest path possible
to obtaining a vocational certificate;
>Sustainably reducing problems pertaining to companies finding suitable a­ pplicants
in the area and within their field;
>On the basis of more advanced data, increasing the number of trainee positions
offered and the number of establishments that offer training;
>Further reducing the number of young people in transition and orienting the
transition area towards state-approved vocational occupations as much as possible;
>Continuously improving the quality of training and strengthening training and, in
particular, further education.
3. C ONTINUING PROFESSIONAL DEVELOPMENT (CPD) AND
ADVANCED QUALIFICATIONS IN RETAIL
Tougher competition, market globalisation and the rapid development of new tech­
nologies, materials and products present a constant challenge for retail companies.
These changes affect the whole value chain. Well-qualified managers and staff are
needed to implement innovative ideas and adjust the way companies are managed to
account for these changes in society. In light of this, staff training is a competitive
factor for any company as a whole and for individual employees.
The colleges and training centres which serve the German retail sector offer com­
prehensive, professional and industry-oriented CPD courses covering all issues
which are interesting and important for retailers. Refresher courses are available
to keep employees’ and managers’ existing knowledge and skills up to date and
adjust them as necessary.
Management skills training is a comprehensive qualification course designed to
enable potential managers to fill positions with greater responsibilities in a company.
© METRO AG 2015
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ADDRESSES
ADDRESSES
The complete list of addresses online – up-to-date
and now optimised for your tablet and smartphone
www.metro-retailcompendium.de/en/addresses/
QUICK SEARCH
Search for specific retail addresses
and find them fast using the new online
search within the full text or using
keywords
NEW EVENT FILTER
Limit your search results using
practical filter functions
DETAILED INFORMATION
All information at a glance –
intelligently linked for a direct
connection to the search result
METRO RETAIL COMPENDIUM 2015/2016
ADDRESSES
249
© METRO AG 2015
250
CALENDAR OF EVENTS
EVENTS
An overview of all important industry events for
2015/16 – now optimised for tablet and smartphone
www.metro-retailcompendium.de/en/events/
QUICK SEARCH
Search for specific trade fairs,
congresses and other industry events
and find them fast using the new online
search within the full text or using
keywords
NEW EVENT FILTER
Limit your search results using
practical filter functions
DETAILED INFORMATION
All information at a glance –
intelligently linked for a direct
connection to the search result
METRO RETAIL COMPENDIUM 2015/2016
CALENDAR OF EVENTS
251
© METRO AG 2015
252
MEDIA AND LITERATURE
MEDIA AND
LITERATURE
QUICK SEARCH
Search for specific magazines,
newspapers and books and find
them fast using the new online
search within the full text or
using keywords
Search online through a comprehensive literature
database spanning 14 years of METRO Retail Compendiums
– around the clock and now optimised for your tablet
and smartphone
www.metro-retailcompendium.de/en/media-literature/
NEW EVENT FILTER
Limit your search results using
practical filter functions
DETAILED INFORMATION
All information at a glance –
intelligently linked for a direct
connection to the search result
METRO RETAIL COMPENDIUM 2015/2016
MEDIA AND LITERATURE
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© METRO AG 2015
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INFORMATION ABOUT METRO GROUP
www.metrogroup.de/en
METRO RETAIL COMPENDIUM 2015/2016
INFORMATION ABOUT METRO GROUP
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INFORMATION
ABOUT
METRO GROUP
256
METRO GROUP AT A GLANCE
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METRO GROUP CONTACT DATA
© METRO AG 2015
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INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / WHO WE ARE
METRO GROUP AT A GLANCE
1. WHO WE ARE1
METRO GROUP is one of the largest and most important international retail and
wholesale companies. It generated sales of approximately €63 billion in financial
year 2013/14 (pro forma). The company is represented at approximately 2,200 locations in 30 different countries. All around the world, some 250,000 employees are
dedicated to generating added value for local customers. METRO GROUP’s operating
business focuses on wholesale and retail.
The group’s four sales lines, which operate independently on the market, occupy
leading positions in their respective segments. METRO/MAKRO Cash & Carry is a
leading international player in self-service wholesale trade; Media-Saturn is number
one among consumer electronics stores in Europe; Real is one of the leading hypermarket companies in Germany; Galeria Kaufhof is the market leader in the department store segment in Germany and Belgium. With their products and services,
the sales lines target both business customers and consumers in Europe and Asia.
They are increasingly linking their stationary stores with online retailing so as
to attract new target groups and secure long-term customer loyalty. Multichannel
retailing offers customers numerous advantages. They have access to the usual
array of offers and services, combined with high flexibility when shopping. They can
also choose how to shop and whether to use a combination of the various sales
channels. This means, for example, that shoppers can buy products online and
collect them in store. Customers can also benefit from the services for products
purchased online when they go to the store.
1
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson’s Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
METRO RETAIL COMPENDIUM 2015/2016
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / GROUP STRUCTURE
257
2. GROUP STRUCTURE1
METRO GROUP
METRO AG
METRO
CASH & CARRY
MEDIA MARKT
SATURN
MAKRO
CASH & CARRY
REAL
G ALERIA
KAUFHOF
REDCOON
>METRO AG is the central management holding company of METRO GROUP. It is responsible for group
management and in particular oversees the Finance, Controlling, Legal and Compliance divisions.
METRO AG also centrally handles executive and administrative tasks for METRO Cash & Carry, the
group’s largest sales line.
>Depending on their strategy and competitive environment, the four sales lines sometimes use different
brands or subsidiaries for their market operations.
>Service companies assist the sales lines by providing shared services in areas such as IT, logistics and
purchasing in Asia.
© METRO AG 2015
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INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / SALES LINES
3. METRO GROUP’S SALES LINES1
METRO CASH & CARRY is a leading international player in self-service wholesale
trade. It is present in 27 European and Asian countries with its METRO and MAKRO
brands. The range of products and solutions is tailored specifically to the needs of
business customers, such as hotel operators, restaurateurs and caterers, independent retailers, service providers and offices.
MEDIA-SATURN is the number one in consumer electronics retail in Europe. The
s­ tationary business of Media Markt and Saturn is closely linked with their online shops
in almost all of the 15 countries in which the sales line operates. The online-only r­ etailer
Redcoon is also part of Media-Saturn and sells products in eight countries. Media-Saturn’s
success is attributable to factors including its decentralised organisational structure,
­attractive offers and innovative marketing.
REAL is one of the leading self-service hypermarket operators in Germany and is
active both in stationary retail and online. All Real stores are characterised by a
large proportion of high-quality fresh products, a wide range of non-food items and
an attractive price-performance ratio.
GALERIA KAUFHOF is the market leader in the department store segment in Ger­
many and Belgium. The sales line uses the brand name Galeria Kaufhof in Germany
and Galeria Inno in Belgium. Common features of all department stores and the online shop are high-quality product ranges featuring international brands and highgrade own brands. The in-store presentation of merchandise makes shopping a special experience for customers. Galeria Kaufhof is positioned on the market with a
distinctive profile as a modern retail brand.
1
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson’s Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
METRO RETAIL COMPENDIUM 2015/2016
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259
4. STRATEGY FOR CUSTOMER VALUE1
The aim of METRO GROUP’s strategy is to generate added value for its customers,
thereby increasing its like-for-like sales and its earnings. The company’s efforts
centre on five strategic focal points to ensure that it keeps evolving: transform, grow,
improve, expand and innovate. In addition to this, the retail and wholesale group has
firmly embedded the issue of sustainability in its company strategy to reconcile
economic targets with ecological and social considerations. This is expressed in its
sustainability vision: “METRO GROUP. We offer quality of life. For our customers, for
our employees, for all who work for us and for society.”
S
CUSTOMER
VALUE
SUS
TA
IN
A
ND
TY
∙
STA
SU
E X PA
BI
LI
A
IN
TA
A
LI T
BI
OV
TE
NABILIT Y
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© METRO AG 2015
∙ SUSTAI
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260
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / METRO GROUP IN FIGURES
5. M ETRO GROUP IN FIGURES1
2013/14
KEY FINANCIAL FIGURES
Sales
€63,035 million
Share of international sales
59.6%
EBITDA 2
€2,836 million
EBIT 2
€1,727 million
Countries in which METRO GROUP is represented3
30
Employees (average by headcount)
255,033
Employees (average, full-time basis)
226,934
MARCH 2015
LOCATIONS
SELLING SPACE IN 1,000 M2
METRO GROUP
2,206 4
12,081
thereof: Germany
944
5,697
Western Europe (excl. Germany)
624
2,795
Eastern Europe
500
2,795
134
794
Asia
SALES BY SALES LINE 2013/14
IN PER CENT
4.9
Galeria Kaufhof
13.4
Real
48.4
METRO
Cash & Carry
33.3
Media-Saturn
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson’s Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
Before special items
3
As of 31 March 2015
4
Including four locations in the “others” segment
1
2
METRO RETAIL COMPENDIUM 2015/2016
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / METRO GROUP IN FIGURES
SALES BY REGION 2013/14
IN PER CENT
261
5.9
Asia/Africa
23.4
Eastern Europe
40.4
Germany
30.3
Western Europe
(excl. Germany)
WORKFORCE BY REGION 2013/14
IN PER CENT
9.9
Asia/Africa
38.5
Germany
31.3
Eastern Europe
20.3
Western Europe
(excl. Germany)
© METRO AG 2015
262
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / COUNTRY OVERVIEW
6. COUNTRY OVERVIEW 1, 2
COUNTRY
LOCATIONS
AUSTRIA
METRO Cash & Carry
12
Media-Saturn47
BELGIUM
MAKRO Cash & Carry
15
Media-Saturn24
Galeria Kaufhof 16
BULGARIA
METRO Cash & Carry
13
CHINA
METRO Cash & Carry
81
CROATIA
METRO Cash & Carry
7
CZECH REPUBLIC
MAKRO Cash & Carry
13
FRANCE
METRO Cash & Carry
93
COUNTRY
LOCATIONS
GERMANY
METRO Cash & Carry
107
Media-Saturn416
Real302
Galeria Kaufhof 119
GREECE
Media-Saturn10
HUNGARY
METRO Cash & Carry
13
Media-Saturn21
INDIA
METRO Cash & Carry
16
ITALY
METRO Cash & Carry
48
Media-Saturn117
JAPAN
METRO Cash & Carry
9
KAZAKHSTAN
METRO Cash & Carry
8
LUXEMBOURG
Media-Saturn2
MOLDOVA
METRO Cash & Carry
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson’s Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
As of 31 March 2015
3
Including four locations in the “others” segment
1
2
METRO RETAIL COMPENDIUM 2015/2016
3
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / COUNTRY OVERVIEW
COUNTRY
LOCATIONS
NETHERLANDS
METRO Cash & Carry
17
Media-Saturn50
PAKISTAN
METRO Cash & Carry
9
POLAND
MAKRO Cash & Carry
41
Media-Saturn77
PORTUGAL
MAKRO Cash & Carry
10
Media-Saturn9
ROMANIA
METRO Cash & Carry
COUNTRY
263
LOCATIONS
SWEDEN
Media-Saturn27
SWITZERLAND
Media-Saturn26
TURKEY
METRO Cash & Carry
28
Media-Saturn39
UKRAINE
METRO Cash & Carry
33
VIETNAM
METRO Cash & Carry
19
31
RUSSIA
METRO Cash & Carry
80
Media-Saturn67
SERBIA
METRO Cash & Carry
10
SLOVAKIA
METRO Cash & Carry
6
SPAIN
MAKRO Cash & Carry
37
Media-Saturn74
METRO GROUP
METRO Cash & Carry
759
Media-Saturn1,006
Real302
Galeria Kaufhof 135
TOTAL IN 30 COUNTRIES 2,206 3
© METRO AG 2015
264
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / CORPORATE RESPONSIBILITY
7. CORPORATE RESPONSIBILITY
OUR CONCEPT OF SUSTAINABILITY
METRO GROUP sees itself as a member of society and helps to create value for it.
Our company has the responsibility to go beyond legal requirements in reconciling
economic goals with the needs of society. At the same time, we have to respect the
limits imposed by the environment. This enables us to act today with tomorrow in
mind. For our business activities, it means creating added value while simultan­
eously reducing detrimental effects. This basic understanding is also reflected in our
vision of sustainability: “METRO GROUP. We offer quality of life. For our customers,
for our employees, for all who work for us and for society.”
Strategically integrating the notion of sustainability in our core business is an import­
ant requirement for meeting our high standards for sustainability. On the one hand,
we ensure this through our Sustainability Board and its bodies. The Board consists
of the director responsible for sustainability, the CEOs of the sales lines, and the
sustainability managers from METRO AG and the sales lines. On the other hand, we
further pursue this integration by adapting relevant business and decision-making
processes and changing our individual conduct. After all, this subject can be driven
by top management but must be implemented by everyone in the company.
We focus our commitment to sustainability on the parts of the value chain and our
points of contact with society where our influence on sustainability-relevant processes
is the greatest. Here, our measures are clearly bearing fruit. The value chain includes the following main spheres of action: procurement, production, processing;
transport, warehousing, stores; customer; waste disposal; social commitment. We
have developed approaches to each of these areas in order to confront their specific
challenges. The following examples give insight into our company’s activities.
SUSTAINABLE PROCUREMENT
In procurement, production and processing, it is important for us to know which resources or raw materials are used to manufacture our products and under which
­social and ecological conditions this is done. When managing these aspects, we
­refer to our purchasing policy for sustainability, which applies throughout the group
and to all of our products. With this policy, we have defined the basic requirements
for a sustainable supply chain and procurement management system. By devising
and implementing such guidelines, we strengthen our procurement channels and
contribute to improving the sustainability of our products.
METRO RETAIL COMPENDIUM 2015/2016
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / CORPORATE RESPONSIBILITY
265
CLIMATE AND RESOURCE PROTECTION
As a retail and wholesale company, we accept responsibility for protecting the climate and resources for those segments of the supply chain in which we can exert a
direct influence: from warehousing, refrigerating and transporting products to operating our stores and back offices. Here, we pursue two central goals: to cut climaterelevant emissions related to our commercial operations and to reduce our use of
resources. This also helps us to reduce our operating costs.
With regard to transport, warehousing and stores, our overriding aim is to reduce
METRO GROUP’s specific greenhouse gas emissions by 20 per cent from the 2011
level by 2020. In concrete terms, this means that we want to cut our emissions per
square metre of selling space from 330 kilograms of CO2 equivalents per year to
264 kilograms.
The climate protection target refers to emissions that are central to METRO GROUP’s
activities as a retail and wholesale company and that it can directly influence. These
include, for example, emissions from the use of electricity and heating energy as
well as those caused by refrigerant loss and paper consumption. We record energy
consumption and other key environmental effects using our Carbon Intelligence
System, introduced throughout the group in 2011.
TRANSPARENCY ALONG THE VALUE CHAIN
We ensure transparency through direct working relationships with our business
partners and through the innovative technical solutions with which the individual
stages of the value chain can be traced. In order to provide better customer orien­
tation, we also use labels that certify products according to specific quality or sustainability standards. In addition to this, we label our own-brand products accordingly,
provide specially prepared information in our stores and interact with our customers.
In this way, we support and encourage our customers to consume responsibly.
FORWARD-LOOKING PERSONNEL POLICY
The future viability of METRO GROUP greatly depends on our workforce’s ability to
react quickly and flexibly to changing conditions and customer requirements. In the
competition for the best specialists and managers, our sustainable personnel policy
gives us a number of key advantages, including systematic management staff develop­
ment and training. Our training programmes are overseen by our own top management as well as by external partners such as the Institut Européen d’Administration
des Affaires (INSEAD) in France and the London Business School in the UK.
© METRO AG 2015
266
INFORMATION ABOUT METRO GROUP / METRO GROUP AT A GLANCE / CORPORATE BOARDS / CONTACT DATA
8. C ORPORATE BOARDS OF METRO GROUP
SUPERVISORY BOARD
Franz M. Haniel
Chairman
MANAGEMENT BOARD
Olaf Koch
Chairman
—
Pieter C. Boone
Member of the Management Board (from 1 July 2015)
—
Mark Frese
Chief Financial Officer
—
Pieter Haas
Member of the Management Board
—
Heiko Hutmacher
Member of the Management Board and
Chief Human Resources Officer
METRO GROUP CONTACT DATA1
1
METRO AG
Metro-Strasse 1
40235 Düsseldorf
Germany
T +49-211-6886-0
www.metrogroup.de
www.metro-cc.de
MEDIA-SATURN-HOLDING GMBH
Wankelstrasse 5
85046 Ingolstadt
Germany
T +49-841-634-0
www.media-saturn.com
www.media-markt.de
www.saturn.de
www.redcoon.de
REAL SB-WARENHAUS GMBH
Administrative headquarters:
Reyerhütte 51
41065 Mönchengladbach
Germany
T +49-2161-403-0
www.real.de
GALERIA KAUFHOF GMBH
Leonhard-Tietz-Strasse 1
50676 Cologne
Germany
T +49-221-223-0
www.galeria-kaufhof.de
On 15 June 2015, METRO GROUP announced the sale of Galeria Kaufhof to the Canadian-based Hudson’s Bay Company (HBC).
The transaction is planned to be completed by the end of September 2015.
METRO RETAIL COMPENDIUM 2015/2016
IMPRINT
267
IMPRINT
PUBLISHED BY
CONCEPT, EDITING AND PROJECT
SUPERVISION
PROJECT MANAGEMENT
METRO AG
Metro-Strasse 1
40235 Düsseldorf, Germany
P.O. Box 23 03 61
www.metrogroup.de
—
Corporate Communications
Peter Wübben
T +49-211-6886-4252
F +49-211-6886-2001
[email protected]
Katharina Meisel
Inga Reske
Viktoria Wedel
Kenneth Gildner
EDITING OF SPECIAL TOPICS
Ketchum Pleon GmbH,
Düsseldorf, Germany
EDITING OF DATA, FIGURES AND FACTS;
GRAPHIC DESIGN, RESEARCH/
SERVICE SECTION, ARTWORK
grintsch communications,
Cologne, Germany
PICTURE CREDITS
Boris Zorn Photography: cover, pages 3, 11, 13, 19,
29, 30, 33, STOCKSY: Seiten 14, 15, 20/21, 22, 23, 24,
26/27, 36, 37, 38, 39, 40/41, 42, 43, 44/45, 46, 48, 49,
53, Getty Images/pchyburrs: page 16, METRO Genussblog: page 18, Getty Images/Nick David: pages 34/35,
christoph.wehrer photography: pages 50/51
Editorial deadline: July 2015
ISBN 978-3-9814786-7-9
© METRO AG 2015
268
IMPRINT
PRINTED BY
Kunst- und Werbedruck,
Bad Oeynhausen, Germany
PRINTED ON
Circle Offset Premium White bearing the EU eco-label,
registration number FR/11/003.
CERTIFICATION
This publication is printed on FSC®-certified paper. By
purchasing FSC® products, we foster responsible forest
management, which is controlled according to the
strict social, ecological and economic criteria of the
Forest Stewardship Council. We only use fully recycled
paper bearing the EU eco-label in this publication,
which also carries the Saphira Eco label of Heidelberger Druckmaschinen AG. This means that the materials
used in the production of this publication, such as
inks, lacquers, chemicals and printing plates, fulfil
the requirements of the most important international
environmental certificates. For additional information,
see www.heidelberg.com. The matt film finish is made
largely from regenerative materials and has been certified as biodegradable and compostable.
carbon neutral
natureOffice.com | DE-149-541364
print production
Printed with Saphira Eco
Printed with Saphira Eco
METRO RETAIL COMPENDIUM 2015/2016
269
ORDER
WE WOULD BE PLEASED TO SEND
YOU ADDITIONAL FREE COPIES OF THE
METRO RETAIL COMPENDIUM.
[email protected]
www.metro-retailcompendium.de
QUESTIONS?
ANY FURTHER QUESTIONS, CRITIQUE OR
SUGGESTIONS?
Katharina Meisel
METRO GROUP
Corporate Communications
T +49-211-6886-2548
F +49-211-6886-2056
[email protected]
DISCLAIMER
The METRO Retail Compendium contains certain statements that are neither reported financial results nor
other historical information. These forward-looking statements are subject to risk and uncertainties that could
cause actual results to differ materially from those expressed in the forward-looking statements. Many of
these risks and uncertainties relate to factors that are beyond METRO GROUP’s ability to control or estimate
precisely, such as future market and economic conditions, the behaviour of other market participants, the
ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of
government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. METRO GROUP does not undertake any obligation to
publicly release any revisions to these forward-looking statements to reflect events or circumstances after the
date of these materials.
All rights reserved. Any use of this publication beyond the limited scope of the copyright laws with­o ut the
consent of the publisher is prohibited. Reproduction of any kind, translation, storage on data carriers of any
type and public distribution of information provided in this book are prohibited. The publisher has made an
effort to provide current information. However, the publisher cannot guar­a ntee the accuracy of any information
contained in this book.
© METRO AG 2015
WWW.METRO-RETAILCOMPENDIUM.DE
ISBN 978-3-9814786-7-9

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