Makro boss Hannes Floto has said he expects his chain of 33 cash & carries to become profitable within the next four years.
The business, which is currently being propped up by German parent company Metro Group, had undergone a transformation since he became MD in January 2007, he claimed. The company had now refocused its offer on its core customers, he said.
“We changed our strategy from trying to be everything to every man, to focusing on hotels, restaurants, catering and c-stores,” he said. “This was a very courageous decision, as potentially we could alienate people. However, it was clear to us that we couldn’t survive with our customer base. Our home is in professional business.”
The stores have increased their range of fresh food and have trained more staff for their butchers and fishmonger counters. As a result, food sales were up 23% in the third quarter of 2008, Floto said. The group has also launched a new campaign called Makro Love The Pub, under which staff have actively recruited pubs, resulting in more than 300 new registrations.
Under another new scheme called Future Stores, two stores have been renovated. Changes included adding 5,000 new lines and giving greater space to fresh food. The stores have shown sales growth close to 50%. Makro’s unique selling point was that it also sold hardware and catering equipment, making it the only cash & carry where people could get everything they needed for catering, said Floto.
“So far, the signs are encouraging, but obviously there’s a long way to go,” he added.
The business, which is currently being propped up by German parent company Metro Group, had undergone a transformation since he became MD in January 2007, he claimed. The company had now refocused its offer on its core customers, he said.
“We changed our strategy from trying to be everything to every man, to focusing on hotels, restaurants, catering and c-stores,” he said. “This was a very courageous decision, as potentially we could alienate people. However, it was clear to us that we couldn’t survive with our customer base. Our home is in professional business.”
The stores have increased their range of fresh food and have trained more staff for their butchers and fishmonger counters. As a result, food sales were up 23% in the third quarter of 2008, Floto said. The group has also launched a new campaign called Makro Love The Pub, under which staff have actively recruited pubs, resulting in more than 300 new registrations.
Under another new scheme called Future Stores, two stores have been renovated. Changes included adding 5,000 new lines and giving greater space to fresh food. The stores have shown sales growth close to 50%. Makro’s unique selling point was that it also sold hardware and catering equipment, making it the only cash & carry where people could get everything they needed for catering, said Floto.
“So far, the signs are encouraging, but obviously there’s a long way to go,” he added.
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