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According to the co-chairman of the EWC, Xaver Schiller a redundancy plan has been negotiated with the assistance of UNI affiliate Verdi.

"We have largely been able to prevent notices on operational grounds. Most of the reductions are managed through voluntary redundancies with severance pay and other voluntary measures".Metro Cash & Carry Germany has presented a turnaround programme to improve its earnings development and open up additional sales potential, Planet Retail reports. The programme should reduce costs in total by EUR150 million (USD210 million) until 2012. It includes three core targets: growth offensive, restructuring and innovation.



To stimulate growth, Metro Cash & Carry has made changes to its assortment, extended its full-services offering, started nationwide delivery and permanently reduced prices of more than 5,000 core-demand articles.



The company improved its private label ranges and anticipates the turnover of its private label product share to increase by roughly a third to 20 per cent by 2012. In terms of restructuring, the company is to reduce personnel cost by EUR75 million (USD105.08 million) by the end of 2012, with logistics costs to be reduced by EUR25 million (USD35.02 million).



The retailer plans to differentiate itself from competition through innovation. It opened three concept stores (in Siegen, Neu-Ulm and Augsburg) in the first half of 2009, where it is testing new assortment adjustments, sales approaches and service offers. In addition, the company is trialling a pre-picking service. The next step will be to remodel the concept stores in Bremen and Erfurt.



“This comprehensive programme will enable us to achieve a sustainable turnaround of the German business over the next two years. We expect to see an end to the earnings erosion in 2009 and from next year on return to profitable growth,” said Frans Muller, CEO of Metro Cash & Carry International.



Read more at:

http://www.foodinternational.net/articles/news/1769/metro-revamps-its-german-cash-carry-division-.html