Inflation, volatile markets, and increasing pressure on margins are fundamentally changing the rules in retail. Traditional planning methods are reaching their limits, while at the same time demands for efficiency, speed, and customer focus are rising. Eric Riegger, CFO of METRO AG, explains which strategic levers are now crucial – and why a consistent focus is becoming the key factor for success.
What priorities are currently shaping your agenda as CFO the most? :
RIEGGER / At the moment, three issues are central to me. First and foremost is the consistent implementation of our Core strategy – with a clear focus on profitable growth in the supply business, which is already our strongest growth driver today. Equally important are cost leadership and efficiency gains, ensuring that growth translates into not only higher revenue, but also into a sustainable improvement in earnings. Added to this is harmonization and standardization in line with the “One Metro – One Finance” approach. In this way, we reduce complexity, leverage synergies, and further strengthen our ability to manage the business.
In your view, what are the key success factors for sustainable growth in the retail sector – and where do the biggest challenges lie? :
RIEGGER / For me, sustainable growth in the retail sector is fundamentally based on three factors. The first is a clear customer focus – particularly on professional customer groups who are loyal and have predictable purchasing behavior. At the same time, it’s about increasing market penetration and systematically expanding our share of wallet, for example by encouraging higher purchase frequencies and larger shopping baskets. A second key lever are efficient and scalable structures. Growth can only be sustainable if it goes hand in hand with productivity gains. This is why we are specifically working to increase operational productivity in our wholesale markets – for instance by making processes more efficient and making better use of space – as well as improving efficiency in administrative functions such as finance, human resources, and information technology. The third factor is our multichannel capability. The intelligent integration of brick-and-mortar stores, delivery, and digital solutions is becoming an increasingly important way to stand out from the competition.
The challenges we face reflect these issues – in particular, rising costs due to inflation, energy, transportation, and labor. At the same time, striking a balance between growth and profitability remains an ongoing management task. This is precisely why cost leadership is not an option for us, but rather a prerequisite for long-term success.
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