"The heart of our strategy is consistency"

00:00:00: What has happened since the launch of our score growth strategy?

00:00:03: How far have we come with our multi-channel wholesale transformation and what challenges do we now have to overcome.

00:00:11: That's what you will learn in this episode, In which I talk to one masterminds behind Score about successes, hurdles... ...and next big milestones!

00:00:21: Let's

00:00:21: go?!

00:00:35: Four years of score, that's nothing less than a comprehensive transformation of Metro countless projects lots of key figures and above all real changes in our countries.

00:00:45: But what's behind it?

00:00:47: All when you take a closer look today I'm talking to someone who has been involved from the very beginning And plays a key role in shaping our strategy.

00:00:56: so You will not only learn about the current situation but also gain an insight into the engine room of our score strategy here at More Podcasts, wholesale to the max.

00:01:10: Welcome back to more podcast!

00:01:12: Dear colleagues your go-to thoughts for everything that you need to know about Our Score Strategy and The Transformation Of Metro.

00:01:19: I am Bernd Roeder from Global Internal Communications at Metro AG and responsible For This Podcast.

00:01:25: My guest today is a true Metro veteran and long-standing strategist at Metro AG.

00:01:32: And one of the masterminds behind SCORE, he helped to launch this strategy and continues to support countries in implementing SCORE & other projects!

00:01:41: Hello and welcome to more podcast to our Vice President's Strategy Peter Engvading.

00:01:51: Score has changed our company significantly and in your role, you are someone who is always a very good overview of the transformation at Metro.

00:02:00: Looking back on the last few years and implementation off-score which positive changes have surprised you the most?

00:02:08: Thank You Bernd!

00:02:10: Actually I have to admit if i look back over the past three years there's not only one element that stands out for me... ...I'm absolutely convinced that core is the right strategy for Metro, which will if executed well and I have no doubt about it that we would do it endures a prosperous future.

00:02:30: For our metro wholesale model.

00:02:32: but If i have to name one thing then i would emphasize That We Have achieved with score since be defined It or designed it?

00:02:42: But we have strong consistency in this strategy.

00:02:46: so there were No back-and-forth discussions And In general even when we design score there was hardly any discussion about score and the strategy itself.

00:02:57: And maybe we will discuss later regarding this consistency, The other positive developments you will tell us about, in this episode we'll discuss the status of the score implementation and also have a look on our most important strategic priorities.

00:03:15: And activities in countries as always are fundamental questionnaires at the end Peter's sound souvenir!

00:03:26: But first I'd like to start with your assessment Peter off significance of Score for Metro because You've already seen several strategy changes at metro.

00:03:37: How much has Metro changed in the past

00:03:45: five to four years?

00:04:06: We need to simplify even from that perspective by having the strong focus on those segments we consider strategic.

00:04:15: On the other hand, what I considered really positive is that we have a growth attitude again which was probably previously looking back with legacy of Metro AG where it was a decade about becoming smaller and by divesting from sales divisions which were not considered strategic, but now we score.

00:04:38: We are back on a growth track and that is substantiated in the very strong growth ambition understand.

00:05:01: we also need to become more efficient.

00:05:04: That would be my perspective on these

00:05:06: elements.".

00:05:07: Yeah, so focus growth ambition and more efficiency are for you the main impacts of our score strategy.

00:05:16: what has been at the heart from the very beginning of Score?

00:05:20: Also the basic considerations of how Score will transform Metro and lead it into a successful future.

00:05:26: this include Focus On Holds sale strengthening the multi-channel approach and corresponding conversion of stores into multi channel fulfillment centers as well as developing new business areas.

00:05:37: Let's take a closer look at these points to get better understanding on how to focus on wholesale.

00:05:44: Peter, from your perspective what are core elements here?

00:05:49: Like you said we have put together four levers that define or describe score also within our country portfolio that we have, which is large and we have different customer groups.

00:06:00: Which have a different emphasis in the different countries due to the market environment.

00:06:07: but the framework is flexible enough that it builds somehow home for everyone.

00:06:11: Everyone can find his place regardless if focus is stronger on Horeca or Trader.

00:06:18: And what's now important is that within this framework, we really develop the wholesale proposition which at core of strategy.

00:06:27: And on one hand you need to develop a right understanding not only what our customers buy but even how they buy because it's very different.

00:06:37: and then building from there can design assortments.

00:06:41: so What is the deepness, the broadness of the assortment?

00:06:46: what categories do we have?

00:06:48: and then it goes down to a single product.

00:06:50: And also understanding than...what they expect in terms of pricing for instance?

00:06:56: yeah that's very important price always matters but there are different prices principles more or less relevant depending on customer even sub-segment.

00:07:06: therefore its really necessary understand how their buy.

00:07:12: that is mirrored in our business model and therefore the wholesale proposition at very hard, it's a key item we need to fulfil on first.

00:07:22: We have a true wholesale model

00:07:23: established.".

00:07:26: We both remember the days when Cash & Carry was all that mattered here at Metro.

00:07:32: How important was the step of breaking this rigid principle for the brick-and-mortar business?

00:07:42: be more open to serve additional channels.

00:07:44: So first of all, I would like to mention and re-confirm that the cash on carry model is really a fantastic business model because it offers for our customers The biggest in the highest flexibility.

00:07:57: Yeah And we even let this even crisis proven now i would say Because We recognized when there was a covid phases That uh...the cash & carry Model Was Really Appropriate To The Needs Of The Customers buy what they need, whenever they needed and wherever.

00:08:13: They could afford it as well.

00:08:15: but the cash on carry model is more than sixty years old And we also have to acknowledge that markets and the behavior of our customers had been moving forward.

00:08:24: or even the delivery channel which is notably in Horica already all-in-all base very important has even increased his importance.

00:08:35: approximately sixty to seventy percent Served through delivery.

00:08:42: So it's a revenue pool and profit pool that is very difficult to ignore even if you want to grow like we wanna grow.

00:08:49: so therefore, It's very important that be that we address their channel and get more More relevant for our customers by offering also delivery.

00:08:58: And what?

00:08:59: We did in the past and when we started it we started already ten years ago buy buying or acquiring delivery specialist companies, not only to buy the sales but also to buy know-how that we can multiply within our group and gather that learnings from there already before starting from zero and have to learn everything by over on.

00:09:22: And when we talk multi channel it's not only about store & delivery It is also about digital channel.

00:09:32: That is of course compromising as well Metro Markets, where we are selling with our marketplace online predominantly non-food goods.

00:09:40: But then also think about the communication with our customers through digital tools that we have for ordering next to the Salesforce which we of course have but that is very really important and on the other hand Also providing digital solutions like with a dish solution that we which is also part for me of the multi-channel approach that we have.

00:10:04: It's worth mentioning, that the combination of all those channels that we are saving creates a multichannel experience for our

00:10:11: customers.".

00:10:12: Yeah you mentioned the digital business as relatively new sales channel so to speak.

00:10:17: however the main driver of our growths is delivery business and this requires also restructuring of our stores costly but necessary measure in your view?

00:10:33: Yes, it's absolutely necessary because as you said from our legacy where we are coming from.

00:10:40: We had more or less only cash on carry stores so mono channel.

00:10:45: and to achieve our growth targets we need of course think about adding only depots, which we also do.

00:11:04: But we understood that it's most efficient for us and the quickest way if even add in our locations to existing part of the cash-on-carry or delivery opportunity is a very efficient approach.

00:11:24: redundant square meters only for delivery.

00:11:27: So with that, we can utilize what we already have the assets in the best way possible.

00:11:31: from our conviction

00:11:34: The fourth pillar of score is as a development and expansion of new business areas such as dish or trader franchise.

00:11:42: What are your thoughts on this?

00:11:45: so For the new businesses That is also quite important because asset The markets and the market environment is constantly changing, it's not standing still.

00:11:55: And that force lever also giving us an opportunity to envision a little bit what is required in the future?

00:12:06: To give even today customer segments which are But which are gaining in the market much, more important for instance like institutional or change Horikar.

00:12:19: We need to develop other capabilities between what we do not have and need appropriate model For them because with the existing cash on carry model coming from there that is not appropriate to do business With them.

00:12:31: And also in the trader environment?

00:12:33: We recognize of course There's a chainification Independence who were predominantly making up the market I increasingly crowded out by convenience to our chain.

00:12:43: So it's even necessary that we offer solutions like that in order to offer our independent customers a safe harbor for the future, so to say.

00:12:53: they are able to compete with those chains by switching under our umbrellas which we have in several Eastern European countries.

00:13:01: The new business is always very important path towards what is required which is on the one hand within our multi-channel pillar, considered.

00:13:14: But even there in other hands we will see that it'll be a next generation of Horika for instance.

00:13:20: and while current generations probably not always as digital The next generation will require digital tools and therefore it's even necessary that we already develop because they'll be in the future to our conviction also a big different shader.

00:14:03: How you Peter, as a seasoned score helmsman incorporate our fundamentals into your daily life and what they mean to you personally.

00:14:11: So I will ask you five questions about our values.

00:14:13: They are always the same And you'll briefly describe Your thoughts on them.

00:14:17: Okay?

00:14:17: Yeah

00:14:18: Then let's get started.

00:14:20: Peter which of The Five Fundamentals is your favorite one?

00:14:24: so actually they Are combined As whole.

00:14:27: enter i think they're all very perfectly geared To ours to our strategy.

00:14:33: But if I would have to choose one, then it will be Veville de Cannes.

00:14:37: Why?

00:14:39: Because for me so necessary that we are bold enough and daring enough try new things... ...and even bring us out of our comfort zone which doesn't feel good from many people.

00:14:52: but you need to be convinced.

00:14:56: or if you're convinced is easier And it's always, there is so much opportunity.

00:15:01: we just need to try.

00:15:03: Then I think most things will become and can become a success for us.

00:15:08: Yeah!

00:15:09: Making things easier leads directly to the next question Where in your working environment do you think simplification is most needed?

00:15:18: Hmm...I

00:15:19: have little bit of pleasure here or advantage that my work environment Is very creative.

00:15:26: We design many approaches because they are project related by ourself and therefore we of course always try to do everything as simple as possible right from the start.

00:15:38: So, We have this advantage that we can create our environment and not much force into processes like others And therefore...we don't need to deal everywhere with complexity given to us

00:15:51: Yeah but nevertheless what would you like to abolish?

00:15:54: Because it had no impact so far?

00:15:58: Yeah, there are a couple of administrative processes where for sure would say okay if I could avoid them that will be very good and very preferred to have more room for other things because our property processors which are corporate must but in my perspective do not add any value for customers.

00:16:22: That is something would want to abolish although knowing that it's not everything possible but they are what would prefer if you get rid of a lot or things.

00:16:34: It is probably like discussions even have in public about all the administrative stuff and administration burdens, which we also think is true for our company life sometimes depending on each other.

00:16:54: How do you create an open working environment where your colleagues can bring our fundamentals to life?

00:17:01: For us, it is as said we are doing a lot of individual projects and with that We always give flexibility or often have the flexibility That people can bring in their own thoughts And Have the creativity To test something Bring new concepts on paper Developing something.

00:17:22: I think creativity is always a key driver to bring the fundamentals to life.

00:17:33: That's a tricky question, because one already comprises a lot but if I would have come up with three words which came into my mind it'd be commonality second would be collectiveness And the third one would be, for me solidarity.

00:17:58: Okay cool yeah Peter all right now we've got an idea what's important to you about our fundamentals and how you deal with them in your daily work.

00:18:07: on later On We want to find out What else is important?

00:18:09: To You personally Be it at Work or maybe also in Your private life With your sounds over near what It Is and what That means For.

00:18:16: You will Find Out Towards The end of This Episode.

00:18:24: Peter, as already mentioned you were involved in the development of Score from the very beginning.

00:18:29: When we look back on that time four or five years ago what basic ideas are?

00:18:34: philosophy?

00:18:35: From the early days of score continue to play a decisive role today.

00:18:41: So Today it is still decisive for me keeping The focus Consistently on our wholesale model and the strategic customers Horeca and Trader.

00:18:52: That hasn't changed And keeping the focus is very helpful for us to keep this efficient model, wholesale model that we want create thanks-to-score.

00:19:05: To make it possible and a key enabler of that.

00:19:10: The success score also defined by KPI's management board as well as our communication report on regular basis.

00:19:20: Imagine you had a score dashboard on your smartphone.

00:19:23: Which key figure would you like to receive as push notification every morning?

00:19:29: Yeah, I think KPIs play very important role to steer the score process and see where we are standing.

00:19:37: There's always combination of different KPIs that take for different purposes.

00:19:43: For me at this moment while it was probably in the beginning I would like to see productivity KPRs, everything that's related to productivity because we are now at the point where even need to understand how we continue improving our productivity.

00:20:02: That will be in being now most important one.

00:20:05: And for these figures and achievement of the related targets are our metro and macro countries responsible?

00:20:12: That is were score has been implemented or great results have already achieved.

00:20:17: In your opinion, what are now the most important projects in a further implementation of SCORE in the metro and micro countries?

00:20:26: For me looking at SCORE now it is less about single project than single country.

00:20:33: Because they laid already foundation for SCORE within first years because that's then necessary And now its more establishing our model consistently across all our countries and companies, which also including of course headquarters to fully leverage the scale off the group.

00:20:55: And where do you see the biggest difficulties or main challenges to push score forward?

00:21:01: The main challenges are that we previously had a operating model with be probably interpreted in way.

00:21:09: there was too much freedom given to the country's over emphasized even being distinct and not commonalities, more distinctiveness.

00:21:19: And individualism was probably put forward because it was asked for also to explain why that happened?

00:21:27: Now of course when you want to deploy a model required by SCORE It feels like we should take away some flexibility and freedom from self-development.

00:21:38: That is then what if you have the freedom one gives up on?

00:21:43: I think this is something where where we need to be sensitive and cautious, to manage that in the best way.

00:21:50: That it's probably understood and broadcasted while we are doing

00:21:53: it."

00:21:55: In my view still a challenge that we need master.

00:21:59: To conclude Peter if you could improve one thing into implementation of score at a stroke what would it be?

00:22:07: Yeah!

00:22:07: It is also very good question because I think this not only comes from something Legacy that we have and you also mentioned.

00:22:19: We have a lot of like you And I, we have also some time that we are with the company.

00:22:23: Yeah You have experienced a lot Of things and i think we need to overcome still That there's The belief that things had Have been successful in the past on the one hand will be endlessly Successful.

00:22:36: um that is Also when we think about certain customer groups that we addressed In the past and On the other hand the conviction that Things Wrong in the past will fail even if you do them right.

00:22:49: Mm-hmm, so that would be some Some things which I would Would like to have the reset button To get rid of that.

00:23:02: dear colleagues The big fresh mattress.

00:23:05: a year off all the fresh has begun.

00:23:08: Freshness is our heartbeat fish meat fruit and vegetables everything our gastronomy customers want and value.

00:23:16: And now we are going one step further together!

00:23:19: The big fresh is more than just a campaign, it's movement... It's mindset….

00:23:24: We're making it tangable everywhere at Metro & Macro.

00:23:29: Our goal?

00:23:30: An additional € three hundred million in the ultra-fresh assortments.

00:23:34: And we can only achieve this as one metro.

00:23:38: To this end there are new training courses best practice stories powerful tools, a recognition program and an unforgettable incentive trip for the best ultra-fresh performers.

00:23:49: So sell fresh!

00:23:51: And win big.

00:23:52: make The Big Fresh visible.

00:23:54: bring your ideas energy and pride to the table.

00:23:57: together we transform products into experiences and Experiences Into growth.

00:24:03: you can find all the information and updates on THE BIG FRESH on united.

00:24:07: just click on the link in the show notes of this episode.

00:24:18: Peter and that brings us to the final part of every more podcast episode, The Sounds Of Nia From My Guest!

00:24:25: Okay?

00:24:26: In each episode they share a sound that's special to them A Sound That They Link To A Certain Emotion And That Makes Them Feel Inspired Or Motivated.

00:24:36: And Peter we are all waiting here.

00:24:38: so what sound did you bring?

00:24:42: Yeah okay Bern, do you give me a second?

00:24:48: Okay.

00:24:48: Yeah I can't hear anything.

00:24:50: so... That's your sound over here!

00:24:55: It

00:24:56: is the Sound of Silence.

00:24:57: The Sound of silence.

00:24:58: okay yeah why the sound of silence?

00:25:01: because if everything works very well then You don't hear any noise and he complains And for me it stands something for a seamless implementation or score.

00:25:13: Maybe also personally Are you someone who likes the silence?

00:25:19: Yeah, sometimes of course I really like the silence.

00:25:21: We are living in a city we have a lot of noise pollution around us and i think it's sometimes then... And really nice if you can go into forest which we have the pleasure here round back at the headquarter and the campers!

00:25:34: You really can breathe even the silence.

00:25:36: yeah this is also something where you get your power updated

00:25:43: Because the silences around you then opens up your mind for even hearing something which is over here.

00:25:50: Otherwise, so for me it's inspiring as well!

00:25:54: Yeah okay yeah silence or avoiding any sound is what inspires you and what you're longing for And I think certainly a good source of inspiration to all us these days.

00:26:06: Peter thank you very much for sharing with us.

00:26:09: Yeah, very welcome.

00:26:10: Oh not sharing it so to speak.

00:26:12: okay yeah.

00:26:13: and that wraps up today's episode of more podcasts.

00:26:16: a big thank you to you Peter for the great overview on The Status Of Score and the transformation of Metro.

00:26:23: we've certainly learned a lot about that

00:26:25: or refreshed yes because they are consistent with our strategy.

00:26:31: Yes all the best to you peter.

00:26:32: Thank You very much Bernd was a pleasure.

00:26:35: And to all our colleagues listening, thank you very much for joining us.

00:26:38: If you have any topic requests or feedback on this podcast feel free to email me or message me on Teams.

00:26:45: above all don't forget to subscribe to more podcasts On your favorite podcast platform catch up on all past episodes and recommend More Podcasts To All Your Colleagues.

00:26:55: I'm looking forward to the next episode.

00:26:58: Bye bye and take care.