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The demerger of Metro Cash & Carry and the consumer electronics business has been completed, creating two separate companies.

Separate areas of expertise

The wholesale and food retail business, which consists of Metro/Makro Cash & Carry and Real hypermarkets, will now be considered as Metro. The consumer electronics business, which consists of Media Markt and Saturn will now be called CEconomy. It is Europe's biggest consumer electronics company, with more than 1,000 stores across 15 European countries and sales of €22bn ($25bn) in the 2015/2016 financial year.

Two stronger businesses

It is expected that by splitting the two businesses, it will allow each business to concentrate on its core competencies and create two stronger, more focused businesses. It is also hoped that the move will allow each company to pursue more acquisitions. Metro's Cash & Carry business has already been acquiring businesses to help strengthen its proposition, buying Pro a Pro from Colruyt in Belgium last year, and Singapore based Classic Fine Foods in 2015. Further acquisitions in key specialities and markets should help strengthen its strong global position further.

Metro Group has partnered with Singapore group, Yoma Strategic Holdings Ltd to enter Myanmar.

Integrated wholesale platform

The joint venture, of which Metro holds an 85% stake and Yoma a 15% stake, will establish an integrated wholesale distribution platform in Myanmar. The new venture will aim to provide quality supplies for local professional customers and hopes to also improve the whole supply chain in the country. More than 3,300 food and non-food items, as well as customised services, will be offered to customers through the new business.

Leveraging operational expertise

Metro Myanmar will look to leverage Metro's procurement capabilities and Yoma's existing logistics and warehousing capabilities to fast track its growth. With operations in 35 countries, it is hoped that Metro Group's international experience will bring global know how in modern wholesaling distribution to the county. Work on a depot for wholesale distribution is scheduled to start in March 2017.

For more information on Metro Group, have a look at our retailer hub page on Supply Chain Analysis. It covers all of the latest news and developments for Metro Group’s supply chain, as well as any industry case studies it is part of and our Metro Group Supply Chain Snapshot.

As announced in March, Metro Group will be split into a food company and a consumer electronics company in mid 2017. The new company names have been announced as Metro (or Metro WFS) for the wholesale and food business and CECONOMY for the consumer electronics business.

Focused operations

The split, which was first announced in March, will enable each part of the business to grow faster in its specific area. The food business will be a huge wholesale food and service company, operating internationally. With activities in 35 countries, Metro WFS will be a specialist in food and serve HoReCa customers (hotel, restaurants and caterers) and will operate on both a B2B basis, as well as a B2C basis, offering food and general merchandise at very low prices.

Decentralisation to better serve customers

When the split occurs, it is likely that the organisation will be decentralised, to allow it to better serve its different customers. It plans to be able to have better values, better quality and better service in order to compete effectively worldwide. Each business has unique elements and assets and it is expected that the split will help to unlock the hidden value of each division.


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