PICKING UP THE PACE! WHERE SHAPE 2012 IS DRIVING CHANGE
1 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE 2#2010 SHAPE 2012 : MAGA ZINE 2 There's a biT of shape 2012 in Julia's daily rouTine, Too shape 2012 is our programme to boost efficiency and increase value
3 <h1>2#2010</h1> <h2>SHAPE 2012 : MAGAZINE</h2> Julia Liu's heart beats for her company. It beats for her fantastic team at the Media Markt store on Huai Hai Road in Shanghai. And: it beats for karaoke. But more about that later. First we'd like to tell you a little bit about ourselves MEtrO GrOuP and the first Media Markt store in china. With the help of Julia and her 274 highly motivated colleagues, we opened the Shanghai Media Markt store in November 2010 where around 45,000 products are now being presented on a selling space of more than 9,500 square metres. Media Markt's entry onto the Chinese market was yet another important step in our ongoing expansion. The vibrant markets of Eastern Europe and Asia play a crucial role in the sustainable growth of METRO GROUP. There's a good reason that our self-service wholesaler Metro Cash & Carry has already been active for 14 years in China; now operating 48 wholesale stores in the country. Our international success is built on a solid foundation: around 283,000 employees in 33 different countries around the world who do their very best every day to make our business a success and delight our customers. In our Media Markt and Saturn consumer electronics stores and also in our Metro Cash & Carry wholesale stores, our Real hypermarkets and our Galeria Kaufhof department stores as well as our real estate business METRO Group Asset Management. Like Julia and her colleagues, who are not just a highly professional team but also share a lot of interests outside of work: their love of fashion trends, their enthusiasm for everything electronic, their soft spot for the weird and wonderful and their passion for music and karaoke. We spent a day with them to find out more. At home, at work, during their lunch break at one of Shanghai's many traditional food stalls and while having fun in the evening. Accompanying Julia, we got to know young china: a fascinating land full of contrasts where the future is really tangible. A future in which we, thanks to Shape 2012, anticipate continued success. On the following pages, you can find out more about how things stand today and what we are planning for tomorrow.<br/>
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5 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE p. 03 For us, growth has many diFFerent Facets Our value drivers On the left you can see the five value drivers that we consider particularly important. "What does that have to do with Shape 2012 and an employee like Julia Liu?" you probably want to know. And our answer is: much more than you might expect. Our Chairman and CEO Dr Eckhard Cordes explains how these value drivers are helping us to become even stronger and create growth for customers, employees, shareholders and society alike. Take a look for yourself!
6 <h1>What is new in Shape 2012, Dr Cordes?</h1> Interview with the Chairman of the Management Board of METRO AG<br/> <b>Shape 2012 moves into its second half. Are you satisfied with the results so far?</b><br/> Yes, because we have become a different, stronger company than we were two years ago. METRO GROUP has internalised Shape 2012 at all levels. The programme has become part of our DNA.<br/> <b>What does that mean for everyday working life?</b><br/> Our structures and processes have become more efficient. Employees are now free to concentrate on their real business: retail and our customers. We are experiencing a new spirit of entrepreneurship. It is making itself felt in all of the many projects that we have initiated. This includes things like our innovative sales formats and concepts with which we are fulfilling our customers' expectations better than ever before.<br/> <b>there is also an air of great optimism regarding the Asian expansion ...</b><br/> Indeed. Thanks to Shape 2012, we can concentrate even better on those areas that promise the best growth. Our accelerated expansion is one of these. With Media Markt in China, we are at just the right place at just the right time.<br/> <b>How important is sustainability?</b><br/> Sustainability is absolutely crucial. However, it has to be relevant to the core business of the company and also support its economic goals. That is certainly the case at METRO GROUP. By acting sustainably we are guaranteeing our long-term success.<br/>
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8 <h1>Julia's heart beats for Shanghai and for Media Markt!</h1> It's 7.30 in the morning in Shanghai and Julia Liu is enjoying her morning cup of tea. Today is her 27th birthday, but she is up early. Because at the Media Markt store where she works as a Senior Sales Assistant there is plenty to do. No doubt about it, Julia's Media Markt store is something special. It is the very first Media Markt store in China. Together with her new colleagues, she spent the last few months preparing for the store's opening. With enthusiasm. With great commitment. And with all her heart, especially in the weeks running up to the grand opening party on 17 November 2010. Since that day, Shanghai's Media Markt store has been brimming with customers every day. And that's all down to Julia and her colleagues who give their very best for the customers at the consumer electronics store. We spent a day together with Julia to find out a bit more about her work. We witnessed the passion that both customers and employees have for technology. While testing out the massage chair, we also found out a little about Asian shopping habits. And at lunchtime, we enjoyed delicious deep-fried tofu at Julia's favourite food stall. Then we joined up with Julia and her friends to celebrate her birthday in style at the karaoke bar around the corner. To sum up: in just eleven hours, we experienced a number of insights into life in the Chinese metropolis and many interesting encounters. Enthusiastic customers and motivated employees were among them, as was a street chef and a German businessman. At the metro station, during the lunch break and in the evening at the karaoke bar: we not only met a lot of new people, we also came across numerous products that came from our stores and outlets. Admittedly, not all of them were from Media Markt. But the Metro Cash & Carry wholesale stores in Julia's hometown also have an extensive assortment. Just like Real, Saturn and Galeria Kaufhof in Europe. Julia Liu knows the four METRO GROUP sales divisions well, as she lived and worked in Germany for some time. It was during this period that she adopted her western-sounding forename. Julia is full of enthusiasm when she talks about her experiences. It was love at first sight. And to this very day, she still maintains a genuine friendship with many of her former colleagues. So perhaps it's no surprise that Julia regularly receives guests from Europe. By the way: she loves receiving little gifts from her old host country.<br/>
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10 7.45 a.m. booMToWn shanGhai: China WaKes up early China's economy is growing rapidly. Ever greater numbers of Chinese consumers are discovering the joy of shopping. Take, for instance, consumer electronics and household appliances: according to experts, the potential annual sales in Julia's hometown Shanghai alone could reach 5.5 billion euros. Consumer electronics is registering an average growth rate of 8 percent and Media Markt is hoping to profit from this growth.
11 8.10 a.m. inTense aCTiViTy in The harbour: priZed freiGhT for europe Shanghai has set its sights high. It aims to have the largest harbour in the world by 2020. Today, it is already one of the most important transshipment centres for the goods that are shipped out from here. China is now the world's biggest exporter, which makes the country a key partner for the sales divisions of METRO GROUP. Consumers in Asia and throughout Europe benefit from the low purchase prices and the high quality.
12 8.20 a.m. Julia MeeTs ColleaGues, eXpeCTed and uneXpeCTed The Chinese industrial metropolis, the city where tradition and modernity meet, has become a magnet for businessmen and -women from China and abroad. The European employees of the METRO GROUP sales divisions are also regularly invited to the city and surrounding area. For instance, to get a first-hand look at the quality and safety of products and manufacturing conditions.
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15 12.37 p.m. anTiCipaTion WheTs The appeTiTe only siX hours unTil The biG birThday parTy
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19 3.34 p.m. The WanGs, CoMpleTely relaXed in The Media MarKT sTore Companies who are looking to achieve international success have to take into account the specific needs of each country where they are active. In Julia's store, for instance, there is a relaxation area where customers can test the massage chairs and other wellness products. These articles are especially popular in China. The METRO GROUP sales formats are so flexible that they can adapt to such specific shopping habits.
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21 7.00 p.m. a birThday Kiss and Many happy reTurns The Tension MounTs!
22 7.20 p.m. all ToGeTher noW: sinG alonG To soMe Cool Chinese pop Good friends, loud music and the right atmosphere the perfect ingredients for an unforgettable karaoke party. The bar owner knows that you also need to have the right products on offer. He buys his supplies at Metro Cash & Carry, because he knows that he can rely on the top quality there. And when he buys the sales division's own-brand items, he can even save money without scrimping on quality.
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25 10.20 p.m. a diGiTal CaMera? an i-phone? an Mp3 player? Julia Can hardly WaiT!
26 11.20 p.m. loVe, loVe, loVe ... Julia and her friends aT Their besT
27 0.20 a.m. The parTy is oVer, buT The enThusiasM reMains For Julia and her friends it's the end of a long and enjoyable birthday party. Even though Shanghai is a city that never sleeps, they know it's time to go home and go to bed. Because tomorrow is another day of maximum effort for their Media Markt store. The commitment of the employees is a key factor for METRO GROUP's continued successful growth.
28 <h1>Our world is multifaceted just like our employees</h1> Julia Liu is one of around 283,000 employees that work for METRO GROUP at its various locations around the world. We entrust them with the most important asset that we have: our customers. No problem; because we know that we can always rely on Julia and her colleagues. They are wellacquainted with the shopping habits of their customers and they know the local conditions. They have good knowledge of what is going on in the local market and they can react flexibly to new requirements. With Shape 2012 we have given them the necessary scope to act and react: because our sales divisions Metro Cash & Carry, Real, Media Markt and Saturn and also Galeria Kaufhof now operate fully independently. The result is a highly tailored product range featuring top-quality items at attractive prices and backed up by excellent service.<br/><br/>The diversity of our team is a cornerstone of our sustainable international growth. After all, our customers are just as diverse in 33 different countries around the world. Accordingly, we recruit the majority of our employees at the location where we are operating. At the new Media Markt store in Shanghai, for example, 99 percent of the workforce is Chinese. We invest in their training, initial and ongoing, because we want to grow together with them. In this way, they profit from our global expertise and the strong sales brands of an international retail and wholesale company. <br/><br/>And METRO GROUP profits from wellqualified and highly motivated employees that contribute to the continuing success of our company. After all, our employees are a major driving force for progress. It is they who provide the impetus for new ideas and concepts. And they are also the ones who test and implement them in the stores. They help us push ahead with our ongoing expansion programme. They are living examples of our sustainable working practices. To sum up: they are the ones who are making Shape 2012 a success.<br/>
29 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE p. 27 metro cash & carry n o V e Mbe r# 2 010 uM a XiMy and M T i q u a l shne s s fre Metro cash & carry is one of Europe's largest distributor of fresh fish. To be able to supply its wholesale stores in Germany and Austria even faster, the sales division opened a fish logistics centre in GroßGerau near Frankfurt am Main in November 2010. All logistical processes converge here. This is a real advantage for the sales division's commercial customers, as it means that almost all varieties of fish are available at the wholesale stores within 48 hours of being caught fresh and of assured quality. The new fish logistics centre also sets standards in terms of sustainability: the buildings and processes have been awarded the German Sustainable Building Certificate.
30 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE p. 28 real n o V e Mbe r# 2 010 driVe-in shoppinG Since November 2010, real has been offering customers an totally new solution for food shopping. "Real Drive" near Hanover is Germany's first stand-alone drive-in food store. The idea is simple: customers preorder their shopping on the website www.real-drive.de, choosing from a range of around 5,000 items. The product offering even includes fresh and frozen products. Customers enter the desired collection time and can then pay for and collect their shopping at the Real Drive shop. The whole process takes approximately five minutes a real time-saver for consumers.
31 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE p. 29 media marKt J u ly# 2 010 a huGe f o o T b a l l be T the 2010 World cup had millions of tv viewers around the world glued to their television screens. In early July, anyone who bought a new television set or projector at Media Markt before the quarter final was also eligible for an extremely special offer: every customer would have the full price of their purchase refunded if Germany won the championship. For the customers, it was a no-risk bet. Everyone who made a purchase took part automatically. Even though the team didn't quite make it in the end, Europe's No. 1 consumer electronics store was certainly the focus of a lot of attention.
32 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE p. 30 saturn o C T o be r# 2 010 MarKeT enTry in russia russia is an important growth market for MEtrO GrOuP. The population's purchasing power is increasing, as is the enthusiasm to consume. This is particularly true for major cities such as Moscow. Saturn opened its first consumer electronics store in the shopping and leisure centre Vegas Mall in the south-east of the city in October 2010. Customers coming to the store can choose from a huge selection of brand products at attractive prices presented on a selling space of 4,700 square metres. Only one month later a second Saturn store was opened in Voronezh in the south-west of the country. This represents a consistent continuation of the sales division's dual-brand strategy, as Media Markt has been represented on the Russian market since 2006.
33 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE p. 31 galeria KauFhoF a nd e T W e a r ion sTre fash T r end s e p T e Mbe r# 2 010 Munich's Marienplatz is the urbane centre of the city. In September 2010, Galeria Kaufhof implemented an innovative, customised concept for fashion-conscious customers. U.Style Fashion is the name of this new store, which is closely tailored to local shoppers' expectations. The independent store is located on the department store's second basement level and offers streetwear and accessories from more than 30 brand-name manufacturers. The core target group is consumers aged 1525 who think of themselves as individual, young and creative.
34 PIckING uP tHE PAcE! SHAPE 2012 IS drIvING cHANGE p. 32 metro group asset management a p r il# 2 010 shoppinG, sporT and enTerTainMenT Magnolia Park in Wroclaw is one of Poland's largest shopping centres. The 74,000-square-metre site offers visitors a diverse range of shopping, sporting and entertainment opportunities. Since April 2010, METRO Group Asset Management has been responsible for the administration and strategic management of Magnolia Park. The acquisition was a logical step in the ongoing expansion of the real estate firm's international centre management business. METRO Group Asset Management is now responsible for a total of ten shopping centres in Poland alone.
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36 Extensive information on Shape 2012, photos, films and Julia's tips for Shanghai, as well as all of the dates, facts and figures for the financial year 2010 can be found in our online report: www.metrogroup.de/annualreport The quick link feature will take you straight to the according content and further information online. Just use the search box on the home page of our online report.
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