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The claim of METRO Group to being a driving force in international trading and retailing is reflected in the corporate strategy. It is geared towards profitable growth and the consistent and sustained increase in enterprise value. The key pillars of this strategy of profitable growth are:
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METRO Group pursues a policy of profitable growth in sales through expansion and internationalization. The focus is on success, not on size. Therefore, the profitability aspect takes precedence over sheer growth in volume. The objective of the internationalization policy is to increase the foreign share of group sales. International expansion concentrates on the emerging markets in Asia and eastern Europe.
METRO Group quickly managed to achieve market leadership in the respective wholesaling or retailing segment on most foreign markets. In established markets the sales divisions consistently consolidated their market position.
One of the remarkable features of the METRO Group sales strategies is that they can be applied throughout the world. Their success and acceptance can be ascribed to the fact that they take into account the cultural particularities, specific expectations and needs of the foreign markets.
Each sales division has to position itself in the market such that its value and profitability rise continuously so that it can contribute to increasing the enterprise value of the METRO Group. The objective is to offer shareholders an optimum return on their investment. The composition of the portfolio makes allowance for the demands of the capital market.
METRO Group is only active in those business segments where sales divisions of a significant size can operate on sufficiently large market segments. The portfolio relies on this diversity. The business areas and sales divisions complement each other in terms of their business activities.
The central parameter for economic success is the internationally established control and management instrument of the economic value added (EVA). It serves as the benchmark for all strategic and investment decisions of the group. An important element of the value-oriented business management is the full integration of the EVA into the reporting concept of the METRO Group.
The consistent, customer-oriented optimization of the METRO Group merchandizing concepts constitutes an essential element for the long-term securing of earnings. In this context each sales division is to evolve into an unmistakable brand in its trading and retailing segment. This strategy is known under the term "retail branding". As retail brands the sales divisions develop their own particular image for a successful market appearance. Customers are addressed individually and their loyalty is ensured by way of new, attractive instruments. Media Markt and Saturn are examples of successful retail brands. A strict customer orientation in terms of assortment and service as well as new forms of customer retention paved their way to business success.
With the objective of increasing customer benefit and improving the efficiency of business processes, the METRO Group is sustainably advancing the modernization process in this sector. The testing and application of innovative technologies in retailing increases shopping convenience for the customers, results in an even broader fulfillment of customer expectations and raises efficiency along the supply chain.
