pdf (18.3 MB) - METRO Group

Metro Group : annual report 2010 : StrateGY
→ stRateGiC PositioninG oF metRo GRoUP : GaleRia K aUFHoF → p. 033
to test a completely new customer approach with “media
markt toGo”. this is an automated shop for selected products
like earphones and recharger cables set up at central
locations like train stations and airports. a total of four
“media markt toGo” locations have been set up at the airports
in düsseldorf, Hamburg and munich as well as at
munich’s main rail station. the total of automated shops is
to rise to 11 across Germany by mid–2011. at the beginning
of 2011, saturn will also launch similar automated shops
under the name of “saturn Xpress”.
Galeria Kaufhof 411
employing a forceful brand strategy, Galeria Kaufhof has
evolved into a multi-specialist with powerful international
product ranges and high-quality own-brand products. the
product range focuses in particular on fashion, perfumery
and household items. the products and services offered by
the sales division can measure up to those of specialist
shops and vertical providers – including clothing manufacturers
that operate their own stores. Within the retail business,
Galeria Kaufhof is positioned as an unmistakable and
successful lifestyle brand. its department stores are generally
located in prime downtown locations. in Germany, the
sales division does business under the names Galeria Kaufhof
and Kaufhof. in Belgium, it is known as Galeria inno. its
portfolio also includes sportarena, a sales format that specialises
in sporting goods and clothing. the service company
dinea operates the restaurant sections of the department
stores.
dependable and surprising assortments
during the reporting year, Galeria Kaufhof continued to
employ its trading-up strategy. the result: the sales division
continued to enhance its assortments with international
brands and own-brand products in the mid- and upper price
ranges and added more attractive lifestyle brands. Galeria
Kaufhof also provides new, previously unknown manufacturers
with a springboard onto the German market. the
sales division generates around 50 percent of its sales with
clothing items. this segment requires efficient processes
and systems in the department stores, given the speed at
which fashion trends shift. at times, the collections change
on a monthly basis. Galeria Kaufhof’s merchandise management
has already reached a high standard designed to
meet these challenges. as part of shape 2012, the sales
division has introduced a product lifecycle management
system that enables Galeria Kaufhof to show the lifecycle of
a product within a consistent it process – from development
and procurement to product delivery, sale and reorder. an
important component of the system, price-markdown management
allows for the determination of the optimal sale
price of a product for any point in time and the appropriate
modification of the offerings. this is particularly important
for seasonal products subject to cyclical changes.
local focus of stores 412
Customers generally buy in local terms. their consumption
behaviour is significantly affected by the immediate market
environment. For this reason, Galeria Kaufhof increasingly
sets up its department stores with local conditions in mind.
in order to do this, store teams have a bigger voice in the
creation of the product range. Galeria Kaufhof has also optimally
designed its marketing concepts and advertising to
meet store needs. one example is the assortment: at some
stores, Galeria Kaufhof has reduced the range while
expanding product areas for which strong local demand
exists. the sales division continuously monitors the range of
brands at each location and makes modifications when necessary.
another example of the steps being taken to focus
on local needs is the new concept of the U.style Fashion
store that Galeria Kaufhof opened in munich during the
reporting year. it is located in the second basement level of
the Galeria Kaufhof located on munich’s marienplatz, at the
same level as the underground station. the U.style Fashion
store sells street wear, that is, leisure-time clothing for
young people, and accessories. it is designed for consumers
who are between 15 and 25 years old.
adding emotion to the brand 413
a department store must approach customers in emotional
terms. the customers of Galeria Kaufhof want inspiration
for their lifestyles. stores, assortments and services are
designed to keep the brand promise “We offer lifestyle
worlds”. an important component of this effort is the partnership
with the star designer Wolfgang Joop that Galeria
Kaufhof initiated during the reporting year. a cre-ative team,
made up of employees from marketing, procurement and
sales at Galeria Kaufhof, worked with Wolfgang Joop to
develop new concepts that speak to customers on an emotional
level. the tV commercials that Galeria Kaufhof used
during the Christmas season of 2010 employed this emo-