News
09.06.2009
Metro Cash & Carry to preserve staff and personnel
According to the Sales Director of Metro Cash & Carry Ukraine Maksim Gatsuts, the company would optimize expenditures amid crisis. For instance, internal costs of the head office have been reduced, but investments in the priority businesses, including marketing, are being increased. Thus, investments in promotion of the brand Metro were raised. The company has not cut jobs (overall, the company employs 7,000 persons) and is not planning to. Terms of labour contracts have not been changed as well.
Cargo turnover of the chain is growing but slower than in 2008. The chain does not delay payments to suppliers (the chain cooperates with about 1,300 suppliers). The number of suppliers in the food segment increased against the before crisis one.
The chain is not planning to reduce its assortment as considers preservation of consumer loyalty and satisfaction of consumers' needs for some particular goods its priorities. Development of the chain's trademark portfolio is aimed to the same purposes. For instance, the trademark Aro is not that profitable as suppliers' brands. Profitability of the trademark HoReCa Select is higher that the one of Aro as there are no identical products of required quality and in packaging convenient for consumers in the market.
The share of imported products in the food assortment of Metro Cash & Carry stands at 35%. The products that are not produced in Ukraine, including Dutch salads, French cheese, Norwegian salmon and Italian pasta products would not be withdrawn from the assortment. The share of the products of the Ukrainian origin is to be increased in the segment for fruits and vegetables. In the non-food segment, in which about 80% fall on imported products, the chain is looking for cheaper substitutes, but the number of positions is not to be changed. The company is also developing the business of goods delivery to some clients, such as hotels of the chains Radisson and Hyatt.
According to Mr. Gatsuts, at present, wholesale and retail markets and distributors are the main competitors of the chain in Ukraine. The crisis made them shifting to a new level, which is opening show rooms presenting all products and providing delivery services, while earlier, they had only warehouses.
Delo
