- METRO Cash & Carry exits the Danish market
- Stores in Glostrup and Aarhus sold to Euro Cater – c. 300 jobs safeguarded
- Closure of three other stores – Agreement with employee representatives and unions reached
Within the context of its recent considerations to withdraw its wholesale business from Denmark METRO GROUP has signed an agreement to sell parts of METRO Cash & Carry Denmark to Euro Cater, a market leading food service company in Denmark and Sweden. Euro Cater will take over the stores in Glostrup and Aarhus and integrate them from December on in its Danish distribution network. By this step c. 300 jobs in these two stores will be safeguarded. The transaction is subject to approval of the Danish antitrust authorities which is expected until end of November.
Furthermore, METRO GROUP has decided to close the other three wholesale stores in Denmark and thus to exit the Danish market. Effective 31 December 2014, the stores in Aalborg, Kolding and Copenhagen will be closed. An agreement for the c. 400 employees in these stores and the headquarters of the Danish operations has been negotiated and agreed on with the employee representatives and the unions. The rationale of the decision 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.
"The stores in Glostrup and Aarhus will complement our existing network of 14 distribution and 2 Cash & Carry locations in Denmark. We are very happy to have the new colleagues from METRO Cash & Carry on board and look forward to developing our business together with them", says Steen Pedersen, CEO of Euro Cater.
"Given the fact that we have not succeeded in extending our market share in Denmark despite intensive efforts we finally decided to withdraw from the Danish market. As a responsible employer it was our goal to find solutions within this context to safeguard as many jobs as possible. We are very happy that we found an agreement with Euro Cater especially on behalf of our employees working in these two stores. For our staff in the other three stores and the headquarters we have reached a fair agreement with the employee representatives and the unions. All of our Danish staff has worked incredibly hard, so I would like to express to all colleagues our appreciation for their enormous commitment", said Denmark's Managing Director Charles Kay.
METRO GROUP is one of the largest and most important international retailing companies. During the financial year 2012/13 (pro forma), it generated sales of about €66 billion. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry - the international leader in self-service wholesale - Media Markt and Saturn - the European market leader in consumer electronics retailing - Real hypermarkets and Galeria Kaufhof department stores.
Euro Cater is a leading foodservice company in Denmark and Sweden with a yearly turnover of about €1 billion. The company operates from 19 distribution sites in Sweden in the name of Svensk Cater. In Denmark Euro Cater operates from 14 distribution sites in the brands of AB Catering A/S and BC Catering A/S as well as from 2 Cash & Carry stores under the inco brand name.