German
Retail Blog

There is a house in Dusseldorf: Metro Group headquarters waiting for the rising sun

With its three-year reconstruction programme (Shape 2012) hardly complete, Metro Group has already embarked on another cost-cutting trip.

New CEO Olaf Koch is apparently preparing to make “painful cuts” only months after arriving at Germany’s largest retailer by sales.

Although officially no decision has been taken on the number of redundancies, trade unions believe these could mean up to 800 job losses. At head office in Dusseldorf some fear that around half of the approx. 4,000 staff could be axed.

Koch (41) wants to reduce group costs by around €100m per annum and has asked all relevant divisions to submit proposals. Read more »

German pioneer: Bünting staff in one of the company's "Famila" stores pick food for the new myTime.de online shop

Sometimes small can be beautiful, but in the world of mass retailing, where God is generally on the side of the big guns, it is usually clobbered.

All those who like to support the underdog must therefore hope that Bünting will succeed with its new online shop.

Bünting who? Yes, gentle international reader, Bünting. On 23rd April, this regional multiple based in Leer/East Friesland was the first German bricks & mortar retailer to open an online shop with a national delivery service. Read more »

Shopping while you wait: Commuters in Seoul order products from Tesco online by scanning QR-coded placards with their iPhones

You have to hand it to Tesco; they are one of the few big international retailers who understand that consumers want to shop anywhere, any time.

When the rumour hit the internet last summer that the UK’s largest grocery multiple by sales had created a virtual shop in a metro station in the South Korean capital Seoul, few were prepared to believe it.

The idea that shoppers would order products online while waiting for the train or bus on their way to work seemed implausible to say the least. Read more »

Under Greek fire: Local politicians accuse Lidl of overcharging for own label products

In ancient Greek tragedy the hero’s moral dilemma frequently consisted in being damned if he did and damned if he didn’t. Worse still: his primary virtue contained the seed of his nemesis.

2,500-odd years later, Lidl, who has opened 230 stores since entering Greece in 1999, faces a similar situation as the bankrupt nation teeters on the verge of a financial and economic precipice. Read more »

Sore feet: In four years, Tesco has only managed to label less than 1 per cent of its assortment with carbon footprints

A special edition of Lebensmittel Zeitung this week, masterminded by LZ-colleague Jens Holst, devotes itself to sustainability. One article takes a brief look at Tesco’s carbon footprint product labelling as seen from a German viewpoint.

The UK’s leading grocer seems to have become somewhat footsore on what ex-CEO Sir Terry Leahy clearly once intended to be a triumphant marathon walk. Over the last four years, Tesco has only managed to research 1,100 lines and labelled around 500 on an average assortment of 70,000. Read more »

Luc Vandevelde: "As regards the general perception of private equity in Germany, I would like to set the record straight once and for all"

Luc Vandevelde is one of the forerunners of a growing breed of top retail managers who have found their lucrative way into the world of private equity.

The former Chairman of Marks & Spencer and Carrefour founded private equity fund management company Change Capital Partners (CCP) in 2003. The London-based business invests in medium-sized consumer goods companies and retailers throughout Europe.

Therefore Vandevelde (61) is in an excellent position to compare two very different capitalistic structures and to weigh their pros and cons. Read more »

Alliance Boots Executive Chairman Stefano Pessina: "I'm not driven by money, glory and compliments!"

It was obvious that this interview was going to start with Schlecker whether the interviewee wanted to talk about the subject, or not. After all, Germany’s third-largest drugstore operator, which filed for insolvency in January, is looking for investors.

Furthermore, Italian billionaire Stefano Pessina, known as the “silver fox” in investment circles, is joint owner of Alliance Boots, Europe’s largest pharmaceutical wholesaler and drugstore multiple. Are Pessina and his investment partner, US private equity company Kohlberg Kravis Roberts (KKR), interested in making a bid for Schlecker, and if not, why not?

And, while we are at it, do they intend to buy DocMorris, the online service of German pharmaceutical wholesaler Celesio? Read more »

Metro Group CEO Olaf Koch: "We don't want a top-down culture anymore"

Can it be that we now have a down to earth, non-arrogant boss at Metro Group? New CEO Olaf Koch certainly wants to revolutionise corporate ethos.

However, the 41-year-old former IT expert will need to act fast if Germany’s largest retailer is not to be pushed down the ranking ladder by Schwarz Gruppe (Schwarz Group) this year.

In 2011, Dusseldorf-based Metro Group posted annual revenues of €66.7bn compared with estimated €64bn at Schwarz Group. Some experts consider it highly likely that the Neckarsulm-based private company will overtake Metro this year.

At first blush, this almost seems counter-intuitive given the various trump cards which Metro holds.

Read more »

Biggest gainer: Natural & organic supermarket operator Dennree grew faster last year than any other German retailer

Who were the winners and losers in German food retailing in 2011?

A glance at Lebensmittel Zeitung‘s top 30 ranking list, compiled by market research company TradeDimensions, reveals all.

One thing is for sure, Germany is currently an Isle of the Blessed for local retailers who have not had to contend with the severe recessionary problems of their European counterparts. Read more »

Lars Olofsson: "I think it better to leave the answer to your question to the new team"

Instead of savaging him like pit bulls, Carrefour’s departing CEO & Chairman Lars Olofsson was gently licked by the retail analysts and financial journalists at last week’s presentation of the annual results for 2011 in Paris.

Despite a 13.6 per cent reduction in net debt to €6.9bn as per the end of 2011, and above-target cumulative cost savings of €1.5bn, this is, more than surprising. Read more »