The total value of the country’s enterprises is estimated at 1.9 billion euros, and the Metro Group is expected to receive a net income of more than 1 billion euros.
According to the agreement, Wumart Group will hold 70% of the shares in the initial stage of the joint venture, Metro will hold 20% of the shares, and the remaining 10% will be held by the minority shareholders of the Metro China joint venture.
The parties expect to complete the delivery by the second quarter of 2020 at the latest.
After careful evaluation, we have chosen to establish partnerships with Wumart Group and many other partners. These two companies are trusted and respected partners of Metro. They and Metro hold the same values and can bring a lot of resources. And expertise, and promise to pursue development based on Metro’s past achievements and footprints.”
Olaf Koch, CEO of Metro Group, responded to the sale of China.
The founder of Wumei, Zhang Wenzhong, summed up the reason for the acquisition of Metro.
“First, the Wumei Group should learn the strict quality control standards of European companies. Second, the scale of retail enterprises in China needs to be expanded. Third, in the digital age, the reorganization of retail enterprises is of great significance.”
Metro’s efforts in China
Researchers in retail capital discovered that in 1998, in the third year of entering China, Metro achieved a sales performance of 2 billion yuan; in 2001, it reached 5 billion yuan; in 2005, it reached 7.546 billion yuan. Yuan; in 2006, it was 9.367 billion yuan.
The peak period occurred in 2012, reaching RMB 17.9 billion, a year-on-year increase of 29.7%, setting a growth miracle.
Metro is very different from other large retailers. Its main business is to B. Metro has entered China first, mainly for units and wholesalers, and has continued to plow in warehouse-based membership supermarkets.
“The Metro to B business has a very high share, which is why this business has played a decisive role in the Chinese market.”
Medelaron China CEO Claude Sarrailh has publicly stated.
But the main attack on the B-end market and the abandonment of the C-end market means that Metro has missed the demographic dividend of consumption under the rapid development of China’s Internet in the last decade.
After the peak of 2012, Metro will be like a star.
In 2013, Metro entered the Chinese market for the 20th year and was an important node for Metro. In this year, the first-time sales growth showed a negative growth, and the performance began to turn sharply. In 2015-2016, sales growth for the second consecutive year fell by 1%.
Although the Hemai family seems to be at the forefront of China’s convenience stores, in fact, Japan’s 711 and Rosen have been cultivating convenience stores in China for many years, with a wide brand base and consumers, and there are still many loss-making shops. .
Hemaijia is just a newcomer to the market, and it comes across the border. The difficulty of management and the difficulty of management can be imagined.
In addition to the advantages of online marketing and operations and new technologies, local convenience stores in China have developed through capital support, and there is no natural pressure on the Hemai family without too many innovative advantages and branding.
In 2018, Metro China began to learn from the new Chinese retail enterprises such as Box Ma Xiansheng, and also cut into the C-side retail field, also in Shanghai, a 2,500 square meter “Metro Longyouhui” business test water C End market, and the first use of electronic price tags.
But this is just an attempt to chase the new wave, and ultimately failed to open a new channel to reverse the decline in the company’s performance.
With the rise of e-commerce, micro-business, membership retail and other consumer channels in China, and the continuous opening of the Chinese market, Germany’s peer “Aldi” supermarket and the world’s largest membership retailer COSTCO supermarket successively In 2019, when it entered China to open a store, there were more and more people in the retail industry. Metro wanted to hold up new business, but it was hitting the wall, and it was harder than a year.
In 2018, the total retail sales of consumer goods in China reached 380.87 billion yuan, an increase of 9.0% over the previous year. By 2019, the proportion of consumption in GDP has increased for eight consecutive years. China’s consumer market is still expanding year by year, but foreign supermarkets operate in China. Poor conditions have become the norm.
In addition to Metro China’s sales of beauty, France’s Carrefour, UK Tesco, South Korea’s Lotte Mart, South Korea’s E-mart and other foreign retail companies or direct stores to withdraw from China or the overall sale, while others are looking for local partners.
If Wal-Mart cooperates with JD.com, Tesco is invested by China Resources, and Auchan’s China business is also fully taken over by its partner, RT-Mart, at the end of 2018.
