Metro Case Study

In: Business and Management

Submitted By mangodude
Words 2574
Pages 11
Metro Cash & Carry

A German Wholesaler’s foray into the Indian Markets

Case Analysis

Table of Contents S No. | Topic | Page No. | 1 | Introduction | 3 | 2 | China | 5 | 3 | China – Challenges | 5 | 4 | Russia | 6 | 5 | Russia – Challenges | 6 | 6 | India | 7 | 7 | India – Challenges | 8 | 8 | Recommendations | 9 | 9 | Conclusion | 9 | 10 | Appendix A | 10 |

Introduction & Business Model

The Metro Group is one of German’s largest trade and retail group player which. It is divided into four major business units: 1. Real/Extra - an everyday retail supermarket 2. Kaufhof - an up market department store chain 3. Media Market/Saturn - Europe’s leading electronics retail chain 4. Cash & Carry - wholesale distribution of goods

The first ‘Metro Cash & Carry’ store opened in 1964 and it has been on an expansion route ever since. It initially sold only dry goods and then ventured into fresh goods & non-food items. Over a period of time, the product offerings increased leading to an increase in the customer segment. By 2003 they accounted for 240 Billion Euros of the total German wholesale market.

Metro C&C worked differently than the traditional wholesale system where they sold food and non-food items in large warehouses on a cash basis. Their main customers were restaurants, bars, cafes, bakeries, SMEs and other food retailers. They issued electronic cards to the customer on the basis of which they were permitted entry. To gain a Metro card a customer had to register and provide proof that it was a legal business entity by providing their business registration certificate.

Metro primarily had three types of stores: 1. Classic (10,000 to 16,000 Sq Metres) – These were the largest and present mainly in Western Europe 2. Junior (7,000 to 9,000 Sq Metres) - These primarily served…...

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