Metro Group to change buying structures

Germany-based Metro Group is working to restructure the organisation of its buying activities, according to Lebensmittel Zeitung, with CEO Olaf Koch planning to combine the volumes of products bought. The measures are primarily aimed at the Media-Saturn consumer electronics operation with Koch telling the newspaper that “bundling volumes is particularly important in the buying of entertainment electronics with advantages for both suppliers and ourselves.”

In addition, the company will also work to enhance the efficiency of its food buying especially with regard to country-level agreements that will combine regional agreements as well as private labels “of which we already sell relevant volumes”. Koch also stated that “never again will our headquarters tell our banners which products to sell”.

The news comes shortly after Metro Group’s recent announcement that it will seek to cut costs by approximately EUR150 million (USD198 million) per year going forward through a combination of administrative restructuring and more efficient buying. The new structure will be developed over the next few months.