Over the past three years, German Metro group invested 205 million euro into its ailing Belgian store chains Makro and Metro, but the results are far from positive.
Lower turnover, increasing losses
“German distribution group Metro will increase its Belgian Makro subsidiary’s capital by 40 million euro. Metro also invested another 50 million in Makro exactly one year ago. In 2016, there was a 115 million euro capital injection. In total, the Belgian Makro chain has spent 205 million euro in its efforts to cut costs”, website DeRijksteBelgen wrote based on its annual results, which were published in the Belgian official journal.
The Belgian subsidiary is struggling: according to its most recent results, turnover only slumped slightly between September 2015 and September 2016 (999 to 996 million euro), but its operational loss spiked a third to 40.4 million euro and its net loss quadrupled to 140 million euro.
Makro is completely transforming: its electronics are now being sold by Media Markt, its petrol station management has been sold and it cut hundreds of jobs: 270 in 2014 and another 500 in 2016. The board has seen a lot of people come and go and it appointed a new CEO in October. Makro has six hypermarkets in Belgium. Metro has eleven wholesale stores for food professionals.
