Metro Group: five developments at the company

Date : 14 January 2021

Keshia Beadle

Senior Retail Analyst

As Metro continues its evolution as a company, we round up developments in Spain, France and Romania as it looks to strengthen its operations globally and in the specific countries.

Metro to promote digital transformation with Wipro

Metro and Wipro have announced a strategic digital and IT partnership ‘to drive forward the transformation of the Group's IT and to concentrate more strongly in future on activities that represent a differentiating added value for Metro customers’. This will see Metro establish Metro Digital, which will specifically develop digital wholesale solutions that ‘ensure a unique selling point for Metro wholesale customers’. As part of the agreement Wipro will acquire two of Metro’s former IT units, which is expected to complete by the end of April 2021.

Metro acquires Davigel España from Sysco

Metro acquired the Food Service Distribution (FSD) company Davigel España from Sysco for an undisclosed amount. Metro said the purchase strengthens ‘its strategic profile in the Spanish wholesale market’. Davigel España, which generated sales of about €35m in 2019, supplies more than 4,000 customers, of which more than 70% are hotel chains, while the remaining 30% are independent restaurants and hoteliers. The businesses are mainly based on the Balearic and Canary Islands.

Metro said the acquisition provides it with ‘access to chained commercial customers, as well as to unique assortment categories, such as frozen, elaborated products and raw materials’, with the latter available due to Davigel España owning exclusive rights to the products. To maintain supply of these products, Sysco France, Davigel España and Makro Spain have signed a long-term agreement which includes access to Davigel's product catalogue.

Metro strengthens partnership in France

In a separate announcement, Metro France acquired a stake of nearly 25% in Filpromer, a fish processing company. Metro said its collaboration with Filpromer started in 2004 and had helped it ‘to address the evolving needs of the hospitality sector’, which is a key customer group for it. Metro said it would continue to invest in the operations to support its continuous development.

Metro Cash and Carry to open smaller stores in India…

Metro Cash and Carry India has said it will open more small-format stores, which will be largely focused on traders, as it aims to open between five and six stores between October 2020 and September 2021. The company, which operates 28 stores in the country, has said it is aiming to open these stores in India’s smaller cities, as site availability and affordability is better and competition is lower both for it and independent traders, due to the comparative lack of modern retail chains. Site availability closer to city centres also makes these cities attractive, with Metro noting the stores drive footfall from both trader and hospitality customers.

…As Metro Romania targets 2,000 franchised stores by 2023

Metro has said it is expecting to reach 1,400 stores under the LaDoiPasi franchise proximity store banner by the end of 2020. By 2023 it is aiming to reach 2,000 stores nationwide in the country. Metro’s chief executive for Romania, Adrian Ariciu, said: “We have continued to invest in the development of the LaDoiPasi franchise network. We launched our range of LaDoiPasi products in the summer to offer entrepreneurs an additional competitive advantage. Store owners now have the opportunity to offer their customers local, exclusive goods”.