Italy

The discrepancy between the affluent north and the less affluent south also affects retailing. METRO Cash & Carry stores in the southern regions have had to contend with consumers’ price sensitivity and have been in danger of losing their competitiveness. However, help has come in the form of METRO Piazza Affari, which was introduced at the METRO Cash & Carry store in Pescara at the beginning of 2013 and, thanks to its success, has since been extended to other locations. The concept is built on the three pillars of cost, price and quantity. To substantially reduce costs, stores are stocked with a smaller range, featuring a selection of groceries and non-food items that is scaled down by 50 and 70 per cent respectively. As for price, the METRO Piazza Affari stores draw customers with over 2,000 products that are sold for 10 per cent less than in other stores or by competitors. The targeted market share and growth are achieved by selling a higher quantity of goods. In Pescara, METRO Piazza Affari has been a resounding success: while the store posted a reduction in turnover of 21 per cent in 2011, the introduction of METRO Piazza Affari led to a turnover increase of 8 per cent. The store was also able to successfully close the past financial year with growth of 7 per cent. This trend is continuing in the present financial year, and METRO Cash & Carry is regaining its position as the leading wholesaler in the region. By the way, METRO Piazza Affari has also made a clear impression on the industry. In March 2014, the concept was distinguished with the Innov@Retail Award presented by the financial newspaper Il Sole 24 Ore. METRO Cash & Carry Italy received the award in the category of “Best Store – Best Format Innovation” for having paid unique attention to the local socio-economic context.