- Missing growth perspective
- Potential close-down of 5 wholesale stores
- Decision to be expected within a couple of weeks
Following a thorough and careful analysis of all conceivable options, METRO GROUP is considering to withdraw its wholesale business from Denmark. The rationale of the Düsseldorf-based retailing and trading group is that the Danish market is considered saturated so that it does not offer satisfactory prospects for growth while METRO Cash & Carry with only five stores in the country does not reach the critical mass.
"While we have started to see stronger growth dynamics within our Cash & Carry-division, unfortunately that has not been the case in Denmark. Considering that we need to continue to get more focussed, we strictly need to align our country portfolio with earnings and growth targets and focus on those regions in which we are in a position to extend our market shares. Much to our regret we have not succeeded in achieving this goal in Denmark despite intensive efforts", said Olaf Koch, Chairman of the Management Board of METRO AG and CEO of METRO Cash & Carry. The Danish METRO Cash & Carry business has not been profitable for several years.
"Our Danish staff has worked incredibly hard, but Denmark is a relatively small economy and an extremely difficult market for Cash & Carry stores.” explains Denmark's Managing Director Charles Kay. "I would like to express to all colleagues our thanks and our appreciation for their great efforts and their enormous commitment." METRO Cash & Carry Denmark is cooperating closely with the local employee representatives in order to discuss and evaluate the situation. A decision can be expected within a couple of weeks.
METRO Cash & Carry Denmark runs five wholesale stores in Aalborg, Aarhus, Glostrup, Kolding and Copenhagen and has a current workforce of around 700 people.