Metro and Masoutis: Costs, Accuracy, Energy and Crisis Management

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By George Lampiris

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Investments in photovoltaics, which it is going to place in its stores, will be implemented by Metro, a group that includes My market stores and Metro Cash & Carry, as stated at the Food Retail CEO Forum conference organized by the self-service magazine, Costas Antimisaris, General Business Director, Metro SA. This is a two-year plan that is expected to be completed in 2023, totaling 18 million euros.

The wholesale – retail dipole for Metro

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“In the first quarter of 2022, in addition to the last quarter of 2021, the issue of energy pressing on the consumer’s wallet intensified and the problem with the war in Ukraine peaked. The consequences vary depending on the format and product categories. that we have a dipole of wholesale and retail, we have seen good results in wholesale and because it is compared to the difficult 2021 and because people will go out to consume both Easter and summer.In retail things are more restrained, while some increase in consumption in certain categories where there was a fear of possible shortages “.

According to Mr. Antimisaris at this time there is restraint of the people and restriction of consumption to goods that are not essential. “There have been temporary increases in certain categories such as flour and cereal derivatives, chicken, sugar. There the price increase has normalized relatively quickly. The whole supply chain has worked very well, as at the first sign we have been able to work with suppliers. us and not to have phenomena of shortages like abroad “.

At 5% -6% the increases in the stores below the inflation levels

“We have worked closely with our suppliers to get better results and to keep price increases as high as we can. Store prices are 5-6% in our stores and do not reflect inflation levels,” said Mr Antimisaris.

He said that at the end of last year there was an increase in energy costs. He added that a plan is now being reviewed quarterly for what is to come. “There have been huge increases and energy is an inelastic cost that directly hurts profitability. The state subsidy has helped in part and it was a good thing. However it is not enough. The increases are too big and there is no doubt that companies’ profits will be pressed. “Profitability allows us to invest in infrastructure and in what we need to do next and the following year.”

Investment of 18 million euros in the installation of photovoltaics

Referring to the management of energy costs and consumption, the CEO of Metro said that the group has invested in recent years in energy management with equipment replacement and investment in lighting, with a reduction of 30% -35% in the last five years in costs. An 18m-euro photovoltaic program is currently under way in most stores and distribution centers to ensure energy independence.

Th. Gerostergioudis: Supermarkets have succeeded in the pandemic and they will succeed now

On his part, Theodoros Gerostergioudis, General Manager, D. Masoutis SA “We are in a very precarious situation now. The goal is to continue to provide the world with what we need to provide,” he said.

He focused on the fact that the supermarkets during the pandemic period did very well, comparing him with his professional experience in England and in fact, as he said, in very difficult conditions.
“People are under pressure, the psychology of the world has changed. But there are also positive messages, as this year is expected to be the biggest exit in recent years, tourism shows mobility.”

“With the cooperation and the recipe that we succeeded in the pandemic, we will succeed now,” said Mr. Gerostergioudis.

Costs, he said, have risen sharply for supermarkets, but healthy relationships with suppliers are important for more effective crisis management. He stressed, however, that we are entering a period of concern, where profitability is being pushed too much and maintaining market share is becoming a priority while trying to hold shares. “We must allow the consumer to have fair prices. The consumer as well as the suppliers are under pressure and we are fully obliged to absorb the energy costs according to the legislation, as our gross profit margin must be stable”, added Mr. Gerostergoudis .

Source: Capital

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