Food retailer Metro Group has unveiled plans for a major streamlining of its corporate structure, a move which will include merging management and administrative positions at its Metro AG holding company and Metro Cash & Carry division.
As part of the restructuring, which aims to continue the group's recent drive towards greater efficiency and customer focus under its recently launched Shape initiative, Metro will also split its international cash and carry operations into two units – one for Europe, Middle East and North Africa, one for Asia and new markets.
'Metro Group’s management organisation will be significantly simplified,' the company confirmed. 'The management and administrative functions at the group’s holding company, Metro AG, and at Metro Cash & Carry are to be, to a large extent, integrated.'
As part of the reorganisation, Metro Cash & Carry's two new business units will be headed up by Joël Saveuse (Europe/MENA) and Frans Muller (Asia/New Markets) respectively. Both are currently members of the Metro AG management board.
'The new structure reflects the great importance Metro Cash & Carry has within the group, and takes into account the considerably different regional market requirements,' said a spokesperson for the company.
The announcement came on the same day that Metro Group announced a 7 per cent downturn in Metro AG's net income to €519m, from €558m in 2008. The group's total international revenues also fell in 2009, by 4 per cent to €66bn.
Despite the poor results, however, the group said the planned reorganisation would aid the implementation of its Shape programme as well as enabling it to 'accelerate' its international expansion in the medium term.
'Hereby, Metro Group is implementing the leitmotif of Shape 2012, namely to become more efficient and more customer-orientated, in the holding structures,' the spokesperson continued.
The move will be seen as underlining the importance of Metro's Cash & Carry business to the overall success of the group.
Metro Cash & Carry is seen as the part of the business which can generate a large proportion of the improved earnings targeted by Shape.
The company is putting its faith in the new structure also enabling it to address strategic areas more effectively in different parts of the world.
For the Europe/MENA business unit, those areas will mainly involve a turnaround in Germany, the extension of its private label range and the further development of delivery services.
In Asia and other emerging markets, meanwhile, the focus will be on pushing forward the group's international expansion, as well as improving its capital efficiency through new store openings.
'Shape got to a very good start in 2009 and already contributed €208m to EBIT in its first year,' said Dr Eckhard Cordes, chief executive of Metro Group. 'Having concentrated, in the first phase, especially on cost savings, we are now focusing in particular on productivity gains.'
He continued: 'Thereby, Metro Cash & Carry, as one of the group’s growth drivers, assumes a key position. The new structure enables us to implement the kicked-off change processes in the most optimal way.'
The composition of Metro AG’s management board is expected to remain unchanged, with Joël Saveuse remaining in charge of hypermarket chain Real in addition to his new cash and carry role.
Day-to-day management of Real will be shared between Roland Neuwald, who takes charge of Real Germany, and Didier Fleury, who will be responsible for its eastern European network.
