Metro AG

Not to be confused withMetro Inc.in Canada.

Metro AG

Metro AG head office in Düsseldorf
Company type	Aktiengesellschaft
Traded as	FWB:B4B
ISIN	DE000BFB0019
Industry	Wholesaling
Founded	1964(1964)as Metro-SB-Großmarkt GmbH & Co. KG 1996(1996)as Metro AG 2017(2017)as Metro AG (new company)
Headquarters	Düsseldorf , Germany
Number of locations	626 (2024)
Area served	Europe, Kazakhstan, Pakistan
Key people	Steffen Greubel(Chairman) Jürgen Steinemann(Chairman of the supervisory board)
Products	Food and non-food assortments
Revenue	€30.551 billion(2022–2023)
Operating income	€598 million(2022–2023)
Net income	€439 million(2022–2023)
Total assets	€11.6 billion(2022–2023)
Total equity	€2.022 billion(2022–2023)
Number of employees	91,201(2022–2023)
Website	metroag.de

Metro AG logo from 2010 until 2016, branded as "Metro Group"

Metro AGis a Germanmultinationalcompany based inDüsseldorfwhich operates business membership-onlycash and carrystores primarily under the Metro brand.As of March 2024,Metro is operating 626 wholesale stores in 21 countries, including Europe, Kazakhstan, and Pakistan.

The company was established in 1964 by Ernst Schmidt andWilhelm Schmidt-Ruthenbeck.In 2010, it was the fourth-largest retailer in the world measured by revenues, afterWalmart,CarrefourandTesco.Until 2020, it was also active in the general retail business through theRealdivision, which was sold to an investor consortium. Its current incarnation was launched in 2017 as a spun-off of old Metro AG, which continued to be a consumer electronics retailer and renamed itselfCeconomy.

History

Metro began on 8 November 1963 inEssenwith the opening of the first wholesale centre under the name Metro by the brothers Ernst Schmidt and Wilhelm Schmidt-Ruthenbeck. Planning and opening of the first hypermarket under the name Metro in Essen was the responsibility of Walter Vieth, who was managing director there from 1963 to 1970.

In 1964, a year after the opening of the first Metro store, the Stöcker & Reinshagen company (the Schell family) planned a cash and carry store inMülheim an der Ruhr.During construction, the businessmens Schmidt-Ruthenbeck, Schmidt and Schell met and decided to merge their cash and carry activities. So they founded Metro-SB-Großmarkt GmbH & Co. KG with headquarters in Mülheim, later in Düsseldorf.Otto Beisheim,until 1964 authorised signatory of the company Stöcker & Reinshagen, became the sole managing director."Metro revolutionierte vor 50 Jahren den Einzelhandel".Der Westen(in German). 26 October 2014.Retrieved15 April2021.In 1966, the third Metro was opened inWest Berlin.

In 1966, Otto Beisheim met Friedrich Wilhelm Lenz, chairman of the management board ofFranz Haniel & Cie.and convinced him to invest in Metro.In the course of the following reorganization Beisheim became a shareholder himself. From this point on, the founding family Schmidt-Ruthenbeck and the shareholders Beisheim and Haniel each held about one third of the shares.

Under the sole leadership of Otto Beisheim, a rapid expansion of the Metro stores into the greater German and European area began in 1967 with the opening of the Metro stores in Godorf nearCologne,Hamburg,Munichand, after a connection with the Dutch companySHV Holdings,the first C&C wholesale store (brand: Makro) in theNetherlands,and in 1968 inDüsseldorf.

In 1980, Metro took over 24.9 per cent ofKaufhof.

In March 1996, Metro AG was formed by the merger ofMetro Cash & CarrywithKaufhof Holding AG,Deutsche SB-Kauf AG (of the insolvent company co op AG), and Asko Deutsche Kaufhaus AG (emerged from Allgemeine Saar Konsum, in which a Metro investment company had previously held shares). The group also included the Huma shopping centres, the sports retail stores Primus Sportwelt, MHB Handel AG and the office supplies and stationery manufacturerPelikan,as well asMedia-Saturn,the consumer electronics business of Media Markt andSaturn.The share of Metro AG was founded retrospectively on January 1 and listed on 22 July 1996 on theFrankfurt Stock Exchangeand was part of theDAXuntil 2012.

In 1998, the computer retailersVobisandMaxdata,the Adler fashion stores and Reno's shoe retailers, the discounter TiP, Möbel Roller and unprofitable Kaufhof branches were brought into the subsidiary Divaco, which was founded together with Deutsche Bank and the Gerling Group, in order to attract new buyers.

In December 2003, Metro separated from its stake in Divaco KG and sold its shares to the sole shareholder and CEO, Siegfried Kaske, for 1 euro. In 2004, Metro bought Adler fashion stores back from Divaco.

In 1998, the 94 Allkauf -S department stores were bought, as was Allkauf Touristik Vertriebs GmbH with 160 travel agencies, which were sold again by Metro.

In 2005, Metro split off thePraktikerhome improvementdivision, which went public as an independent company.

In July 2006 Metro bought the 85 German stores ofWal-Mart,which gave up its loss-making Germany business. The Wal-Mart stores were largely integrated into theRealsales brand.

In July 2008, the Extra supermarket chain with around 250 locations and sales of around 1.6 billion euro, was sold to theRewe Group.Metro sold the Adler fashion stores to the associated company BluO in February 2009.

In October 2012, Makro-Habib in Pakistan becameMetro-Habib.

In November 2012, Metro sold its 91 Real hypermarkets in Poland, Romania, Russia and Ukraine toAuchanfor 1.1 billion euro.In 2014 Metro sold the 12 Real hypermarkets in Turkey.In 2017 Metro sold the last remaining four Real hypermarkets in Romania.

On 15 June 2015, Metro AG agreed to sellGaleria Kaufhofto Canadian retail conglomerateHudson's Bay Companyfor $3.2 billion.

On 30 March 2016, Metro Group announced that it would be splitting into two independent companies:A spin-off of the wholesale and food sector of Metro AG will be responsible for the group divisions into two independent and publicly listed companies. Both will have their own management, supervisory board and independent company profiles. Metro AG was renamed Ceconomy, comprisingMedia MarktandSaturnelectronics stores, while a new company with the name Metro AG was formed, comprisingMetro Cash & CarryandReal.

In September 2018, Metro announced that it wanted to sell theRealhypermarket subsidiary in Germany to focus entirely on wholesale business.In February 2020, Real was sold to The SCP Group.The deal was completed in June 2020.With the acquisition of Johbeco AB and its subsidiary Johan i Hallen & Bergfalk, a Swedish specialist supplier of meat, fish and seafood, for around 100 million euros in May 2023, Metro entered the Swedish and Finnish market.

Controversies

Following the2022 Russian invasion of Ukrainewhich began on 24 February, many international, particularly Western companies pulled out of Russia. Unlike most of its Western competitors, Metro AG announced its intention to keep its business in Russia open, drawing criticism.Ukrainian government officials have called for a global boycott of the company.The Ukrainian office of MetroAG has allegedly been threatened by the company's headquarters in Germany due to the Ukrainian branch openly calling for sanctions on Metro's Russian branch. According to Ukrainian ex-ministerDmytro Dubiletthe Ukrainian branch has received warnings to be disconnected from the centralized supply.In February 2023, the National Agency for the Prevention of Corruption of Ukraine included the company in the list ofInternational Sponsors of War.

Wholesale operations

Metro Cash and Carry logo

Metro warehouse in Moscow, Russia

Makro warehouse inKraków,Poland

Metro warehouse inFaisalabad,Pakistan

The company operates wholesale stores, primarily under the Metro brand, in Europe, Kazakhstan and Pakistan. In the Czech Republic, the Netherlands, Poland, Portugal and Spain it operates stores under the Makro brand, which were acquired entirely fromSHV Holdingsin 1998.

Country	Since	Brand	Wholesale centres
Germany	1964	Metro	103
Netherlands	1968	Makro	17
France	1971	Metro	99
Austria	1971	Metro	16
Italy	1972	Metro	49
Spain	1972	Makro	37
Portugal	1990	Makro	10
Turkey	1990	Metro	35
Hungary	1994	Metro	13
Poland	1994	Makro	29
Romania	1996	Metro	30
Czech Republic	1997	Makro	13
Bulgaria	1999	Metro	11
Slovakia	2000	Metro	6
Croatia	2001	Metro	10
Russia	2001	Metro	93
Ukraine	2003	Metro	26
Moldova	2004	Metro	3
Pakistan	2007	Metro	10
Kazakhstan	2009	Metro	6

Metro on Russian market

Metro AG is Russia's fourth-biggest retailer behind X5 PJPq.L, Magnit MGNTq.L and French chain Auchan.The company entered the market in 2001 with the opening of its first wholesale store in Moscow.Over the years, Metro AG has expanded its presence in the country, opening stores in several other cities, including Saint Petersburg, Nizhny Novgorod and Rostov-on-Don. There are 97 stores in 65 cities across the country.In 2022, the company's revenue amounted to 224 billion rubles.

On 22 March 2022, in response to the ongoing war in Ukraine, Metro AG published an official statement expressing solidarity with Ukraine and condemning the war.The company also announced its support for the food and water deliveries of the UN World Food Programme to Ukraine. Despite that, Metro AG made a decision not to leave the Russian market, citing its responsibility to the 10,000 colleagues employed there and the many customers who rely on its stores. The company stated that it is closely monitoring further developments and is committed to supporting “decision-makers in business and politics who are seeking a peaceful solution to the war in Ukraine.”

Currently, Metro AG is developing the integration of new projects in Russia, such as the establishment of the grocery stores chain "Fasol"and the acceptance of payments by "Mir" cards,a project initiated by "Sberbank" in response to sanctions. Furthermore, the investigation by the National Agency on Corruption Prevention (NACP) revealed that the key shareholder of Metro Cash & Carry, Daniel Kretynski, controls EP Infrastructure (EPIF), which owns 49% of Eustream,the company that operates a gas transportation system from Russia to Central and Eastern Europe. This fact, combined with the company's actions, led to Metro Cash & Carry being added to the NACP's list of international sponsors of war.

Metro AG's latest quarterly financial results report,which was released on 8 February 2023, indicates a decrease in sales at the chain's stores in Russia. The document states that the sales in local currency decreased by 14.1% in the first quarter of fiscal year 2022–2023; adjusted EBITDA in Russia decreased to €60 million from €81 million in Q1 2021/2022.

Former operations

Metro sold in 2010, the Makro subsidiary inMorocco.

In 2012, Metro exited theUnited Kingdommarket through the sale of its 30 Makro stores toBooker Group.

In 2014, Metro divested itsGreeceoperations by selling 9 Makro stores to Sklavenitis.

In 2014, Metro exitedVietnamby signing an agreement to sell its local subsidiary, consisting of 19 stores, to the Thai group Berli Jucker for €665 million.

In December 2014, Metro exited theDenmarkmarket. They had pioneered in-store delivery services nationally since opening their first store in 1971.

Egypthad a brief market foray in 2010 with two stores opening, but these were closed between 2013 and 2015.

In April 2020, Metro completed the sale of a majority stake in its Chinese joint venture toWumei Technology Groupfor more than €1.5 billion. Metro retained a 20% ownership stake in the venture, which operates 97 wholesale centers acrossChina.

In August 2021, Metro ceased operations inJapan,resulting in the closure of all its 10 stores within the country.

In September 2021, Metro announced it would end its supply business inMyanmarby the end of October 2021.

In 2022, Metro exited fromBelgiumthrough thebankruptcyof its local subsidiary, which operated stores under both the Metro and Makro brands.Notably, Belgium was the only country where Metro had stores under both brands, and it was also unique in allowing general access to its Makro network, typically reserved for business customers. Only Metro wholesale network stores that avoided bankruptcy were subsequently sold and reopened under the Sligro-M brand.

In 2023, their operations inIndiawere sold toReliance Retail.

Metro name

Metro had the naming rights for brand name Metro protected at an early stage, including an agreement with the Hollywood giantMetro-Goldwyn-Mayer,which was possible at the time without remuneration.

Metro tried to secure its usage rights for the term "Metro" in various proceedings. TheLower Saxonyrailway company MetroRail had to change its name toMetronom EisenbahngesellschaftmbH, but can still call its trains Metro. Also the Metro Rapid Successors Metro Express was renamed after being threatened with legal action. InNabburg(Upper Palatinate), the Metro discotheque was sued and had to change its name. Lawsuits against public transport companiesBerliner Verkehrsbetriebe(BVG),Hamburger Hochbahn(HHA),Hamburger Verkehrsverbund(HVV) andMunich Transport Company(MVG) because of the name Metro-Bus for some main bus routes were rejected in the first instance. The second instance confirmed the judgments, but significantly restricted the use of the public transport companies of the name Metro. In the Ruhr area, the bike rental system Metrorad ruhr had to be renamed Metropolradruhr.

In 2012, in the face of an impending brand conflict,Microsoftrenamed its Metro user interface of theMicrosoft Windows 8computer operating system (toMicrosoft Design Language,or MDL).

See also

• EuroCommerce

External links

• Official website
• Metro wholesale