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Press

Strategic Re-orientation of the Real Group

01.03.2000

Strategic Re-orientation of the Real Group

After the integration of the allkauf and Kriegbaum companies and the corresponding organizational modifications, real,-, Mönchengladbach, is undergoing a strategic re-orientation in order to become an even more attractive retail partner. The retail focus is now more than ever on the customers since the Real Club affinity card is being issued with an attractive PAYBACK program. The goal of the re-orientation is to relieve the stores of administrative work and to provide an efficient, streamlined headquarters which can make decisions more rapidly.

New Administrative Structure: The headquarters in Mönchengladbach was set up for real,- at the beginning of the integration of allkauf and Kriegbaum. As a result of this decision, the Controlling, Construction/Technology and Environment departments, among others, moved to Mönchengladbach. In addition, the Hanover and Alzey locations will remain in use as Service Centers and for central operations.

The goals of the new administrative structure include: - Stronger customer orientation, - Relief from administrative tasks in the stores, - Improvement of internal communications and cooperation through the reduction in the number and dimensions of interfaces, - Clear task allocation at all locations, - Increase in competitive power through clear management structures, and - A sustained increase in the economic efficiency of real,-.

The management of real,- has therefore decided to merge several departments which are currently divided between Mönchengladbach and Alzey. Thus some departments will be consolidated in Mönchengladbach, while others will be concentrated in Alzey based on sensible considerations of the existing employee potential, labor market conditions, and the topical correspondence among the departments concerned. Those employees whose department or position are being relocated will be offered a new position within their previous fields.

Furthermore, numerous transfers to other departments remaining at the original location will be offered, so that in accordance with current planning 69 employees will relocate from Alzey to Mönchengladbach and 61 from Mönchengladbach to Alzey. Overall the number of employees in each location will remain almost unchanged.

The merging of the departments will begin very shortly and should be completed by the end of 2000. Should relocation be declined for important personal reasons, real,- will offer the employees financial compensation for the loss of their workplaces. At Alzey this will ensue on the basis of the existing redundancy plan. For employees in Hanover and Mönchengladbach, the management of real,- will offer the works councils corresponding negotiations. real,- guarantees that all apprentices will be able to complete their training.

Changes in the Board of Management: The METRO AG Board of Management will propose to the real,- Supervisory Board that Stefan Feuerstein, 44 years old, previously CEO of Metro﷓Großhandel, Germany, be appointed as the new CEO of real,-. Before he joined Metro in 1998, after beginning his career in the foodstuff industry, Feuerstein held positions of responsibility in the retail sector in marketing, sales, purchasing, and finance, most recently as Chairman of the Board.

The previous real,- CEO, Hartmut Kirchhoff, is leaving the company of his own accord. The Board of Management of METRO AG regrets this decision, as Kirchhoff played a major role in the success of the real,- concept and respects that he wished to make the re-orientation easier by taking this step. The METRO AG Board of Management thanks him for his commitment and wishes him all the best for the future.

At the same time, Theo Schnichels, one of the two sales directors, is leaving the company of his own accord. The Board of Management of METRO AG thanks Mr. Schnichels for his extraordinary success in the integration of allkauf.

The METRO AG Board of Management will propose to the Supervisory Board of real, that Siegfried Hauenstein, 48 years old, who has been the General Manager of real,- since January 2000, be appointed to the real,- Board of Management. The real,- Board of Management will therefore be composed as follows in the future: Stefan Feuerstein (CEO), Dr. Andreas Busold (Administration), Bernd Guillaume (Human Resources), Siegfried Hauenstein (Food), Klaus Schmelter (Nonfood) and Horst Vogt (Sales and Marketing).

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