Sales went down, too, to RON4.49 billion (over EUR1 billion) in 2014. Metro’s best year was 2007, when it posted EUR1.72 billion revenue.
The decline is because of the crisis, on the one hand, and the expansion of modern retail on the other, which drove tens of thousands of small traditional retailers out of business. Unlike hypermarket, supermarket and discount store chains that target end consumers, cash&carry chains’ customers are largely resellers (small traditional retailers) and hotel, restaurant and catering companies.
Metro arrived in Romania in 1996. At that time there were about 150,000 small retailers on the market. Since then, foreign retail chains have entered Romania and the current 12 in business in this country own about 1,500 hypermarkets, supermarkets, discount and convenience stores. These retailers account for more than half of the grocery retail now.
Metro Cash&Carry’s sales might return to growth next financial year, its officials said. (EUR1=RON4.4799)
(English version by Loredana Fratila-Cristescu)