Highlights from the sales lines
SUPPORTING SMALL BUSINESSES
LaDoiPaşi – that’s the name of the franchise programme that METRO Cash & Carry Romania introduced in March 2012. The name alludes to the customer group supported by the self-service wholesaler’s initiative: independent retailers whose shops are just “two steps” away from their respective customer base. Those who participate in the programme receive comprehensive training and advice on product ranges and prices. The experts from METRO Cash & Carry also help franchisees modernise their businesses. Every 14 days, the sales line publishes an advertising brochure that the retailers can use to market their products. METRO Cash & Carry has also introduced similar programmes under different names in Bulgaria, Croatia, Poland and Serbia. Roughly 4,000 franchisees are involved. In Romania alone, more than 400 independent retailers are taking part in LaDoiPaşi. What’s in it for METRO Cash & Carry? Customers purchase the majority of merchandise, in particular own-brand articles, through the sales line.
INNOVATIVE MARKETING CAMPAIGN
One product, one price, one day: this triad forms the foundation of the “Real Deal” promotion that all German Real hypermarkets ran in October 2012. Every day for 4 weeks, the sales line promoted a different, high-quality product at an unbeatably low price. During the promotional period, customers could purchase, for example, a refrigerator for €69, a digital camera for €10 or a Nintendo Wii gaming console for €111, with limited product sales. The sales line used Facebook, Twitter and newsletters to promote each “Real Deal” on the evening before it was released. Customers learned the actual purchase price on the day of the promotion, possibly from a commercial on the radio. This enabled Real to sustain the excitement. Thanks to the campaign’s huge success, Real plans to relaunch it in 2013.
ONLINE STORE LAUNCHED
On 16 January 2012, Media Markt celebrated the grand opening of its online store with a comprehensive advertising campaign at all German locations. The Internet shop allows Media Markt to combine the advantages of virtual shopping with the convenience of bricks-and-mortar retail. Through this multichannel approach, customers can, for example, place an order on www.mediamarkt.de and on the same day pick up their purchase at the nearest consumer electronics store – as long as it’s in stock. Knowledgeable Media Markt employees advise customers on selections and purchasing options over the phone. The sales brand remains completely transparent when it comes to prices: all products cost the same low price in-store as they do online. Through daily comparisons with its chief competitors the company always offers its customers attractive, market-driven, competitive prices. By the end of 2012, more than 10,000 different products were available online at Media Markt, with more than 40 percent of customers taking advantage of the opportunity to pick up their orders at a store.
SERVICES FOR THE ENERGY-AWARE
A self-proclaimed “consumer rights headquarters” founded in 2007, the independent sustainability platform www.utopia.de has been collaborating with Saturn since May 2012. The online platform’s pithy slogan crystallises its vision: every individual has the power to promote eco-friendly products or support fair working conditions through his or her purchasing behaviour and lifestyle. The goal of this partnership is to provide further momentum to getting energy-saving appliances into German households. To support all those who already value energy efficiency in their search for energy-saving technology, Saturn identifies the most energy-efficient and environmentally friendly appliances with the lowest operating costs in its online store (at www.saturn.de) that have made it onto the EcoTopTen lists produced by the independent non-profit association Öko-Institut by labelling them “Utopia approved”. Items that deserve special recommendation, for example because they are most popular among consumers, receive an additional “Utopia product” label. In the “Conserving energy with Saturn” section of its German website, Saturn also provides further information about how to use electricity intelligently and sparingly.
ERFURT LOGISTICS CENTRE OPENS
It took just 10 months to build Redcoon’s new logistics centre in Erfurt. With 53,000 square metres of storage space, the warehouse has room for more than 250,000 items. Every day, electronic products leave Erfurt destined for 10 European countries, a significant portion of the products even on the same day the order was placed. To ship items off as quickly as possible, the logistics centre is, among other things, outfitted with a fully automated warehouse for small parts. On top of that, 48 truck lanes ensure that goods arrive and depart the facility swiftly. Up to 30,000 packages are shipped every day. Redcoon invested €36 million in the first construction phase of the new logistics centre. The sales brand employs about 200 people in Erfurt through the subsidiary redcoon Logistics, and this number is expected to grow to 350 by 2015. With this expansion, Redcoon is well stocked for future growth.
EXPANSION OF THE ONLINE OFFER
EXPANSION OF THE ONLINE OFFER Galeria Kaufhof has been attracting customers with its refreshing variety of merchandise and meticulously selected product ranges for more than 130 years. In 2011, the sales line began offering a special shopping experience on the Internet: the www.galeria-kaufhof.de online store is closely integrated with the department stores. Customers can have online purchases delivered to a store as well as exchange them there. It is also possible to order items in a department store and have them sent to one’s house. In August 2012, Galeria Kaufhof expanded its online selection of underwear and sleepwear as well as designer swimwear. Shoppers can choose from more than 2,000 items for women, men and kids. Undergarments made from organic cotton are labelled with a “Naturally Galeria” seal. In September, Galeria Kaufhof also began selling socks and stockings on its website. All in all, the online store offers more than 50,000 different products, including toys, shoes and wine.
CONSTRUCTION OF A NEW SHOPPING CENTRE
The Ruhr metropolis of Essen is getting a facelift: the grounds of a former Krupp cast-steel factory that sat deserted for decades is in the process of becoming a site of a 230 hectare city district dotted with apartment and office buildings as well as parks and lakes. And by autumn 2013, the area, called Krupp-Gürtel (Krupp Belt), will also be home to a modern speciality shopping centre built on 30,000 square metres of land under the direction of METRO PROPERTIES. The subsidiary acquired the plot from ThyssenKrupp AG in 2011, and the cornerstone was laid at the location on Essen’s Haedenkampstraße in May 2012. The Real sales line was selected to be the anchor tenant and will occupy the largest plot – 12,000 square metres in total. The nearby hypermarket on Husmannshofstraße will move into the new shopping centre after construction is completed. An interesting facet of the new building is its green roof, which will continue the visual theme of the neighbouring park.