In an effort to channel funds into its struggling German home market, Metro Group is reportedly considering an exit from Egypt, Bulgaria, Kazakhstan and Japan, according to local reports.
Sales in the retailer's home market of Germany grew by 1 per cent to reach €6.1 billion in the first quarter of 2013, while international sales dropped by 2.2 per cent to €9.4 billion. Further changes to the Group's approach will see the non-food product assortment streamlined as well as modifications to Metro Group's management. Increased emphasis will be placed on fulfillment - the complete process from point of sale through to the delivery of a product to a customer - with the Group soon to create a dedicated Fulfillment and Multi-channel department.
Speaking at Metro AG's Annual General Meeting, which was held on 8 May 2013, chairman of the management board, Olaf Koch asserted that the Group was on track owing to strategic realignment efforts, commenting,"Despite a further tightening of market conditions, especially in Southern Europe, we managed to increase sales and win market share in numerous countries. This confirms us that we are on the right track with the strategic initiatives implemented. We will continue to build on this in 2013."
During the period from January to March 2013, Metro Group generated sales of €15.5 billion, a slight drop on results from the same period in 2012 of €15.6 billion, owing in part to the shorter trading period in 2013, which had three fewer trading days than the prior year's quarter. Overall sales at the Group's Cash & Carry business dropped by 2.8 per cent to €7.1 billion. However, Metro Cash & Carry saw its delivery sales climbing by 15.9 per cent to hit €586 million, a significant jump on the results from the same quarter in 2012 of €504 million.
Sales at the Group's hypermarket division Real fell by 0.9 per cent to hit €2.6 billion in the first quarter of 2013. However, adjusting of the disposal of its Central & Eastern European operations - excluding Turkey - Real's overall sales development was positive.
For 2013's financial year, Metro Group anticipates 'generally moderate sales growth (adjusted for portfolio changes) despite the persistently challenging economic environment'.
