- Bundling of central functions with a focus on food and non-food purchasing
- Extension of the cooperation to procurement logistics, technical procurement,e-commerce and administration planned
- Significant synergies for Real and METRO Cash & Carry Germany expected
- Decision taken in close consultations with the German Cartel Office
Effective 1 April 2017, the German retailers Real, Bartels-Langness, Bünting, NETTO ApS, Klaas & Kock, and Georg Jos. Kaes founded the "RTG Retail Trade Group" with the purpose of bundling central functions. Under the umbrella of this joint venture the joint purchasing of food, non-food and ultra-fresh products will be combined in a first step, a move that will create significant synergy effects thanks to volume bundling, best prices and sharing of administrative functions. This also holds for METRO Cash & Carry Germany which participates in the joint venture through Real. In a next step it is planned to also extend the cooperation to logistics and technical procurement, e-commerce and administration. The decision was taken in close consultations with the German Cartel Office.
"For us, participation in the RTG Retail Trade Group constitutes the next consistent step towards leveraging synergies through cross-company partnerships", says Olaf Koch, Chairman of the Management Board of METRO AG. "Real and METRO Cash & Carry Germany have already achieved substantial efficiency gains in procurement through their partnerships with Markant and PHD. The cooperation with the RTG Retail Trade Group now opens up a new dimension of collaboration. This will ultimately also benefit the customers by way of a larger product range, more service and attractive prices".
The Retail Trade Group represents another cornerstone for the sustainable positioning of Real and METRO Cash & Carry Germany. The synergy effects achieved will be invested primarily into the competitiveness and further development of the formats. All participating companies each hold one sixth of the shares in this joint venture with registered office in Hamburg. The representatives of the shareholders at the shareholders' meeting will be Real's CEO Patrick Müller-Sarmiento as well as the board members of the other five joint venture partners. After the successful start of the joint venture it is planned to also open this newly created platform to further retail companies.
Together with its 90,000 employees, the sixth retailers participating in RTG represent more than 2,600 hypermarkets, supermarkets and petrol stations across Germany. The partners of RTG operate more than 4 million square meters of selling area. With c. 23 billion sales in Food and Non-Food, RTG is one of the largest retail cooperations in Germany.