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.
What does effective corporate management mean to you in an era when traditional predictability is increasingly reaching its limits? :
RIEGGER / Today, effective management means, above all, setting priorities – rather than relying on maximum planning accuracy. In a dynamic environment, it is crucial to keep an eye on the levers that truly matter.
This includes a high degree of transparency through a small number of highly impactful key performance indicators. At the same time, it requires the ability to make prompt decisions and adjust to the course just as quickly.
In this context, operational excellence is becoming significantly more important. Management relies more on clear guidelines than on detailed long-term planning.
How do you currently make decisions regarding capital allocation – that is, where to invest, where to prioritize, and where to deliberately scale back? :
RIEGGER / Our capital allocation follows a binding principle: we invest where sustainable value is created – and we prioritize consistently.
Specifically, this means we focus on high-growth, scalable areas such as supply. At the same time, we make targeted investments in infrastructure, sustainability, and data-driven solutions – especially in initiatives that structurally improve our efficiency. These include, in particular, IT and AI applications that increase scalability and productivity across all units.
Another focus is on investments with fast and measurable returns. At the same time, we are systematically scaling back activities that lack sufficient strategic fit or clear earnings potential.
Many new technologies related to AI and automation are now well established. How can you tell if they actually offer added value? :
RIEGGER / For us, technology is not an end in itself. We evaluate its value based on whether it makes a measurable contribution to improving productivity and cost structure, tangibly enhances the quality of service for our customers, and can be scaled across countries and business units. A concrete example is our Intelligent Sales Assistant, which helps our sales teams identify customer needs more precisely and address them in a more targeted manner. Only when solutions meet these requirements and prove themselves in operational use do they have strategic relevance for us.
When you think about your company and the retail industry in 2030, what would you like to have initiated or achieved by then? :
RIEGGER / Our strategy is clearly focused on 2030. Two goals are central to this: first, the complete transformation of METRO into a pure wholesaler with a consistent business model across all regions; and second, profitable growth based on our Core strategy – consistently implemented and firmly embedded within the company.
About Eric Riegger
Eric Riegger has served as Chief Financial Officer of METRO AG since February 1, 2024. Prior to that, he served as Commercial Managing Director of ALDI Süd in the U.S. starting in 2019. He began his professional career as a senior consultant at Arthur Andersen before assuming various leadership positions at Lidl starting in 2002 – most recently as a member of the Executive Board and CFO of Lidl USA. Eric Riegger holds a Bachelor of Science in Business & Information Technology from the Baden-Württemberg Cooperative State University and an MBA from the Open University in the United Kingdom.
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