Independent Traders – local suppliers and saviours in times of need

Traders – the term used by METRO to refer to independent resellers – are local suppliers, they are saviours in an emergency when you get a little peckish late at night, and not infrequently they are also a point of contact for a number of local residents. But it is not only their proximity to the end customer that makes independent resellers, and their shops stand out. Depending on the country and local conditions, they represent a serious economic factor: for example, resellers benefit from the trend towards convenience products and have the opportunity to tailor their range to the local requirements of their customers.

Why do Traders have a special significance for METRO?

But what makes independent Traders so interesting for METRO as a customer group? ‘There is a lot of local competition between many independent providers,’ says Daniel Quest, who is responsible for Trader Franchise worldwide at METRO. ‘In addition, the number of customers that can be addressed is high.’ In Germany, Traders such as kiosks and petrol stations are particularly important for end consumers because, unlike most supermarkets and discounters, they have longer opening hours or are even open around the clock. But in many countries and regions, such as Russia and Pakistan, the food market density is not as high as in Germany. Here, METRO supports Traders with franchise models.

What makes resellers different from supermarkets and hypermarkets?

‘The Traders’ businesses have a high degree of convenience compared to supermarkets and hypermarkets,’ explains Quest. This means that convenience and speed are a priority for end customers when shopping. Instead of 20 types of pasta sauce on long shelves, there may only be two – but exactly the ones that most customers want. To do this, you need to know and continuously evaluate what the end customers want. Experience shows that their shopping baskets tend to be rather small, with only three to five items. But if things go well, customers will come more often. And above all, they will keep coming back. What exactly ends up in the shopping basket varies from region to region, however.

However different the purchases may be, they have one thing in common: ‘Price and brand are key factors,’ says Quest. There are no individual products in the Trader business, such as menus in gastronomy; the range of competitors is relatively comparable. So, in order not to compete entirely on price, unique selling points are needed. ‘There are basically four key aspects that determine a Trader's success,’ says Quest. “First, the personal touch; second, the right and well-positioned assortment; third, the location; and fourth, additional services such as lottery or a parcel drop-off point.” The bottom line: anything that makes the end customer's life easier. And that applies worldwide.

How does METRO support independent Traders?

METRO acts similarly to a franchisor with its own brand identity, supplying products and offering participating independent grocers special services such as training and assortment advice. ‘Traders are required to combine a range of products with special services,’ says Quest. ‘METRO creates offers and solutions to make customers competitive.’ The METRO franchise model is characterised by:

• Independence of traders: Traders retain their operational and financial independence.
• Obligation of traders: The independent traders are obliged to purchase a certain share of their products from METRO.
• Customised services: The franchise partners benefit from METRO services such as digital solutions, product ranges and training offers.
• Franchise-optimised assortment: METRO offers a specially adapted assortment and a pricing around the METRO own brand Fine Life.
• Modern store format: METRO provides support for professional store design to highlight convenience elements such as ready meals or branded coffee corners.

To strengthen customer loyalty, METRO has also set up a ‘Convenience Academy’ based in Warsaw. The aim is to expand the knowledge of customer managers advising franchisees.

In which countries does METRO support franchise models?

Since 2010, METRO has offered franchise models for independent Traders. There are currently franchise Traders in Poland, Romania, Russia, the Czech Republic, Bulgaria, Croatia, Serbia, Pakistan and Slovakia.

• Poland: METRO has been operating the Odido franchise network since 2010, with a strong presence throughout the country. In Poland, a refrigerated counter with fresh sausages is standard equipment for many Traders – no matter how small the store is. Katarzyna Boratyn, who has been running her Odido shop in Katy Wrocławskie near Wroclaw for more than 14 years, knows what it takes: ‘You have to take an interest in your customers and know them and their needs. I even place some orders specifically at the request of customers.’
• Romania: Launched in 2012, LaDoiPasi is the country's largest franchise network, with over 2,000 stores. Small shops are part of everyday life in Romania. Many consumers here prefer traditional neighbourhood shops, not least as a place to meet. This is confirmed by Mihaela-Simona Toma Enciu, who runs two LaDoiPași stores: ‘I realised early on what an important contribution our business makes to our local community – as a local supplier, we are simply right in the middle of it.’ Nevertheless, modern organised retail is expanding and international chains are on the rise.
• In Russia, METRO has been supporting independent Traders through the Fasol franchise model since 2016. Although the leading food retailers' share of the market is growing steadily, smaller, independent shops and markets continue to play an important role in daily shopping. Furthermore, the size of the country results in differences in nutritional and shopping habits. ‘We have customers in Russia that can only be reached by rail every 2 weeks’, reports Trader expert Quest.
• Czech Republic: METRO has been active with the franchise system Můj obchod since 2012. E-commerce is in high demand in the Czech Republic: in 2020, the Czech e-commerce market achieved a sales growth of 26%. An average annual growth rate of 9.6% is forecast for the period 2022 to 2025. METRO is helping Traders to meet demand with digital solutions.
• Slovakia: E-commerce is also trending in Slovakia – an average annual growth rate of 13.6% is expected for the period 2022 to 2025. METRO supports Traders through the Slovakian franchise network Môj obchod, which celebrated its 750th opening in 2023. This makes it the second largest franchise company in the country. Despite the e-commerce boom, small Traders close to home are important. This is also the case for the shop of Slovakian reseller Valéria Fialová. After her shop burnt down, METRO helped her rebuild it. Together they ventured a fresh start.
• Croatia: In Croatia, METRO has been supporting independent Traders through the Moj dućan franchise programme since 2016. But METRO's sales force is also active in Croatia and supports restaurateurs. One example is Iva Antolović Sošić, who heads the customer manager teams for METRO's Poreč and Pula stores in Croatia.
• Bulgaria: METRO is active with the franchise system My Store. METRO not only supports local Traders, but also local producers. As part of the ‘Nurtured with care in Bulgaria’ programme, more than 300 farmers supply wholesale stores with cheese, honey and various types of locally grown vegetables and fruit.
• Pakistan: METRO introduced the Pakistani franchise model Freshly in 2016. The franchise network's business is ‘Freshly – The Neighbourhood Store for Fresh Living’ in Lahore. ‘Our customer magnets in the range are primarily fresh fruit and vegetables, as well as a fresh meat counter that meets the highest standards of hygiene and quality,’ says Raafay Munir, Senior Manager Operations & Commercial.
• Serbia: Jutro is the youngest METRO franchise model. It was introduced in February 2023. Shopping behaviour in Serbia is currently influenced by a high inflation rate. In 2023, it was around 12.37% in Serbia, while the EU average was 6.30%. As a result, consumers paid more attention to prices and increasingly chose cheaper alternatives. This is where METRO comes in with its own brands.

Traders are one of METRO's core customer groups. With advice, products and offers such as the franchise format, owners of small shops receive individual support.
More about the strategic topics in the annual report.