|
|
 |
| Glossary |
|
 |
|
|
Overview of important terms used in the annual report 2003
|
|
|
Concept optimization is a permanent task. Under the guideline terms of "customer focus" and "earnings improvement" the objective, among others, is to continuously increase the efficiency of business processes, improve and modernize the outlet chains, convert stores to innovative marketing concepts and intensify measures of customer retention. Activities aimed at addressing customers directly are also part of this approach. In the METRO Group concept optimization is an important pillar of our corporate strategy geared to achieving profitable growth.
|
|
|
Cross-divisional service companies
|
|
In addition to the sales divisions responsible for the operational business there are also companies in the METRO Group that assume tasks like buying, logistics, IT, advertising, financing or waste management and environmental management for the sales divisions and for the entire group. They act as interfaces at which group-wide services are bundled as a result of which synergies can be used and costs reduced.
|
|
|
This is an IT-based information tool with the help of which one can obtain a general overview of the condition of a company at any time. The Data Warehouse links different relevant databases within the company thereby allowing for a comprehensive analysis by way of rapid access to bundled and structured information. These data make it easier for the management to take strategic decisions. The METRO Group's Data Warehouse combines important data of the different sales divisions and cross-divisional service companies. Its application has produced considerable efficiency improvements in a number of different work processes within the group.
|
|
|
Efficient Consumer Response (ECR)
|
|
Efficient Consumer Response (ECR) describes the holistic view of the entire supply chain. ECR focuses on the best possible adjustment of trading and retailing to the needs and expectations of customers. Consumer needs must be met in the most efficient way possible. This can only be done if business processes are viewed and optimized along the entire value chain from the raw materials supplier via the manufacturer all the way to the trader or retailer and, eventually, to the customer.
|
|
|
In the METRO Group the following categories are considered part of our food assortment: fresh produce (including fruit, vegetable, fresh meat and fish, dairy products), non-perishable foodstuffs (including sausages and other meat products, canned food, delicatessen, staple diets like noodles, and sauces), frozen food products, beverages of all kinds (including alcoholic beverages), cigarettes, food supplements (like vitamin products), pet food, detergents and household cleaners. All other merchandize comes under the heading of "nonfood".
|
|
|
This is the quality hallmark of the Metro sales divisions in the food area. Fresh produce competency describes the ability to offer customers food items of the highest level of quality and freshness on a continuous basis. The very foundation and guarantee of the METRO Group's fresh produce competency is a sophisticated logistics system. One major component of this freshness concept is the maintenance of the unbroken cooling chain, i.e. the consistent and controlled refrigeration of fresh produce from the manufacturer to the store.
|
|
|
METRO Group's Future Store is a completely new type of supermarket of Metro's Extra sales division where the main new technologies available today that will shape the retailing of tomorrow are tested for the first time in complex interaction. These technologies include basic technologies like the Radio Frequency Identification (RFID) or technical systems with a high specific benefit for the customer, e.g. self-checkouts. As the first major project of the METRO Group Future Store Initiative, the Future Store promotes the technical innovation in retailing and tests the process applicability of the technical systems as well as their acceptance by the customers.
www.future-store.org
|
|
|
This is the management of merchandize flows. Logistics is a major part of the value chain in a trading and retailing company. It is possible to reduce transportation and warehousing costs by means of a carefully planned control of the merchandize flows. The METRO Group has concentrated its logistics competency as a cross-divisional service function for the entire group in its logistics companies MGL METRO Group Logistics and MDL METRO Group Distribution Logistics.
|
|
|
METRO Group presents itself to the job market using the brand name "Meeting Metro" as an umbrella for its activities. On the occasion of an information event under the same heading which is organized one to two times a year, METRO Group presents the company as well as the retailing sector to students of economics and trading-related areas and to teachers. Such events provide a forum for illustrating the great variety of job activities and career opportunities within an internationally active retailing group. In this way, Metro sharpens its profile as an attractive employer. Comprehensive information about Meeting Metro more...
|
|
|
This term describes the marketing concept of a trade or retail company. In all its sales divisions the METRO Group has very unique and distinctive merchandizing concepts whose efficiency is consistently increased by permanent concept optimization.
|
|
|
With more than 25 million members in Germany this is the market leader in customer retention programs. Participating customers receive a club card. For every purchase for which they present their card they will be credited with a certain number of bonus points. In addition, Payback customers benefit from special discount promotions and target group specific product offers. The Payback program provides the opportunity for target group oriented marketing and individual customer address. With the successful participation of the sales divisions Real and Galeria Kaufhof in the Payback program, METRO Group has assumed a pioneering role that has attracted a great deal of attention in the entire trade and retail sector.
|
|
|
This term describes the sustainable and profitable improvement of the efficiency of business processes.
|
|
|
The METRO Group’s corporate strategy is geared towards the sustainable growth of the value of the company. Growth is profitable if and when the profitability of the sales divisions increases in line with sales. The METRO Group achieves profitable growth by establishing sustainable market penetration with its sales divisions in the national and international markets.
|
|
|
The constant improvement of quality standards of the merchandize offered and the safety of food products enjoy a high priority at the METRO Group. The group therefore has a particularly efficient quality assurance system. Organizational and technical measures guarantee that products and services meet clearly defined quality requirements throughout the group. Quality assurance covers, among other things, food items and the raw materials used for their production, manufacturers and suppliers, the adequate transportation of merchandize as well as the hygiene provisions at the establishments of the METRO Group.
|
|
|
These are unique corporate brands in retailing. The clear-cut brand profile makes for the essential difference today between successful and less successful trading companies. This is why for the METRO Group the development of its merchandizing formats into retail brands constitutes an important objective (retail branding). The status as a retail brand is achieved by a sales division if it meets all fundamental customer expectations during shopping (quality execution), if it unmistakably positions itself vis-à-vis competitors through a special and efficient service and value strategy (retail excellence) and, finally, if it communicates its identity as a brand in a very targeted manner.
|
|
|
RFID, Radio Frequency Identification
|
|
New technology for the contactless data transfer operating on the physical basis of alternating electromagnetic fields. Under the METRO Group Future Store Initiative, METRO Group is currently testing the practical application of RFID in retailing at the Future Store. Labels provided with RFID technology can be read by a computer-controlled device (reader) without requiring visual contact. This innovative technology provides decisive impulses for the optimization of the process chain.
|
|
|
In the METRO Group the six sales divisions Metro Cash & Carry, Real, Extra, Media Markt and Saturn, Praktiker as well as Kaufhof are responsible for the operational business. They operate independently in the markets with their own specific merchandizing concepts covering the wholesale trade, different food and consumer goods retailing formats as well as specialist outlets in the high-growth areas of consumer electronics and home improvement centers. Together, the sales divisions of the METRO Group offer both private and commercial customers the full spectrum of trading for all conceivable shopping occasions of standardized products.
|
|
|
Value-oriented corporate management
|
|
The management focus on increasing corporate value is an essential principle governing the work in the METRO Group and its sales divisions. It is reflected in the total focus on profitability targets and the Economic Value Added (EVA), among others.
|
|
A detailed glossary of important terms of the trade and retail business is provided in the Metro Trade Encyclopedia on pages 44-113.
|
|
|
|
|
|
|
Print Page
