Cash and carry giant Metro AG has unveiled a new growth strategy, 'sCore', with which the group is seeking to maximise its value proposition and expand its position as a leading food wholesaler.
Metro unveiled sCore at its Capital Markets Day, held in Düsseldorf earlier this week.
With the new strategy, Metro is seeking to increase sales to more than €40 billion by 2030, as well as growing its EBITDA to more than €2 billion in the same time period.
To achieve this, the company plans to invest up to 2.5% of its total sales in bolstering its network, an amount that will be reduced to 1.5% of total sales after 2025. By 2030, the wholesaler is seeking to generate free cash flow of more than €600 million.
Metro said recently that it expects to report a sales increase of between 3% and 7% in its 2021/22 financial year, after a strong fourth-quarter and full year.
Three Core Pillars
Metro's growth offensive will focus on three pillars, the company said in a statement, which include 'sharpening the wholesale focus on professional customers, significantly expanding the multichannel business model and developing new business'.
It also plans to engage in a 'functional reorientation' of stores for professional customers with focused B2B assortments; increase its own-brand share to more than 35%; expand its food service delivery (FSD) operations through the extended use of store space for delivery and additional depots; expand its Metro Markets online marketplace internationally, and seek to bolster customer retention in both hospitality and general trade.
Its business model will therefore be 'strongly focused' on professional customers, it added, who will account for more than 80% of sales.
'Exceeded Market Growth'
“Our ‘sCore’ strategy stands for growth in the core business of Metro, food wholesale for professional customers," commented Dr Steffen Greubel, CEO, Metro AG
"We have already exceeded market growth in recent months, with record sales in many countries. Now it’s about consistently rolling out our strategy. Our growth will be mainly organic and financed through the operational business. With our sCore strategy, we are creating added value for our customers and employees, for investors and for society."
Elsewhere, Metro has also outlined plans to achieve carbon neutrality by 2040, avoiding plastic and food waste and continuing to expand its range of sustainable products.
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