Metro Cash & Carry China: A Case Study of Glücks Supermarkt.
The Metro Cash & Carry was established in Germany in 1964. The first store opened in Mulheim an der Ruhr, and it had a retail space of 14,000 square meters. Although the large store retail format was new in Germany at that time, it proved popular among the working class, which enabled the company to open other branches in the country. The founders of the group were Wilhelm Schmidt-Ruthenbeck, Erwin Schmidt, and the Schell family (Metro, 2017a). Today, the company has over 750 stores that operate in 31 countries in Europe and Asia. These stores serve over 21 million customers with a broad range of high-quality products and bespoke services (Metro, 2017). Worldwide, the company has around 250,000 employees who work in 180 countries. Additionally, it operates more than 2200 branches in Europe and Asia. The company offers various products and services under the following categories: Metro Cash & Carry, Real hypermarkets, and Media Market and Saturn (Metro, 2017)
This paper analyses the market opportunities brought by Glücks Supermarkt to Metro Cash and Carry. Glücks Supermarkt operates a medium sized supermarket that is in Cologne. The businesses specialize in the sale of Chinese consumer products and other consumer products to the huge population of these individuals in Cologne. Since its establishment, the supermarket has progressively grown to become one of the leading Chinese retail dealers in Cologne. There are many supermarkets that sell consumables including those specializing in the sale of Chinese consumer products. Just across Glucks Supermarkt is Ho Supermarket, a supermarkets specializing in Chinese goods. Recently, the Chinese population in Germany has been progressively increasing due to the increase in trade and social relations between China and Germany. For example, there has been an increase in Chinese students’ population in Germany due to the former’s increased preference of learning technical skills in the Germany (Michael, 2015). According to the Statista (2017), the population of Chinese-born inhabitants in Germany increased from 81,331 in 2010 to 129,150 in 2016. This high increase shows the increased number of Chinese inhabitants in Germany and the need for a supermarket designed to cater to their needs.
The consumer market that is served by Glücks Supermarkt is the most vibrant in the European market. Germany has a large population of about 81 million individuals, which is about 16% of the European Union’s population (Rehder & Bielinska, 2016). Additionally, the country has the highest gross domestic product per capita in Europe. Accordingly, Germans have the highest purchasing power in the entire European region. As of 2015, the German’s GDP per capita grew by 1.7% to reach over $47,268. The country’s gross domestic product of euro 3,026 billion constitutes about 21% of that made by all European Union countries (Rehder & Bielinska, 2016). The German purchasing power of euro 1,776 billion, is also the highest in the Eurozone.
Due to this well performing economic environment, the German population is affluent and thus has a lot of demand for consumer products. Germans are receptive to brand names and also to discount retailers (Rehder & Bielinska, 2016). Accordingly, the Glücks Supermarkt strategy of offering discounts on its products and selling items from recognized brands makes it have the edge over various competitors. Germany currently has an aging population. Thus the population with the highest purchasing power in the country are those over the age of fifty years. Further, these individuals have been exposed to better education and technological advancements that their parents were at their age. Therefore, these people are healthier, require quality and services conscious, and are more demanding regarding products that they need to be compared to their parent (Rehder & Bielinska, 2016). Given these strict preferences, medium sized supermarkets such as Glücks Supermarkt offer services that meet the specific needs of these individuals.
Retail Segment and Recent Developments
The overall retail sector in Germany has continued enjoy a positive growth in the recent years. In 2015, for example, the market grew by 1% reaching about $216 billion. Although the retail sector gets some of its products local from suppliers such as Metro Cash & Carry, overall, the country is a net importer of major food products (Rehder & Bielinska, 2016). In 2015, the retail sector made imports of about $55 billion for consumer-oriented agricultural products. The country’s retail sector is extremely competitive, which is combined with market saturation and low prices. As a result, businesses in this sector make small margins from their sales (Rehder & Bielinska, 2016). The current trend in this sector shows that individuals are starting to prefer small grocery formats such as convenience stores and independent retailers.
Number of Retail Outlets in Germany
|Type of Outlet||2012||2014||Estimate of 2016|
Source: Rehder & Bielinska, 2016.
Recent research indicates that although discounters are the largest seller with regards to retail sales, these individuals have been having a decline in value of their sales. Majorly, the decrease in the popularity of discounters is due to the increased urbanization, which has made most consumers to prefer shopping in supermarkets that are in convenient locations in their cities. In this regard, the current urban consumer aims at saving time and still having the option of selecting a wide variety of items. Noteworthy, although the number of supermarket outlets declined in 2015, their sales value increased (Rehder & Bielinska, 2016). Therefore, there is a trend of shoppers focusing on small, quick, and high-quality grocery shopping in cities. Another contribution for the growth in sales values of supermarkets is their ability to offer high-value brand ranges that are normally cheaper than branded products. Since customers perceive these products to have similar quality, they are no-longer incentivized enough to buy from discounters. Furthermore, discounters are no-longer the only providers of private label products. Hypermarkets have continued to be popular in suburban areas of Germany due to their attractive prices and convenience. However, hypermarkets have recently been struggling to compete with supermarkets in urban cities. Mainly, this is due to the urban population preferring shopping in smaller neighborhood stores, which they can easily access daily for fresh food produce.
Although convenience stores have been experiencing the strongest growth in the retail sector, their growth has stalled. In fact, most of them are struggling to compete mainly due to the low prices that customers are willing to make for their products, while these businesses have to pay high rents for their prime locations. Finally, independent retailers have been facing a lot of competition from grocery retailers. This competition is mostly from supermarkets, small discounters, and convenience stores (Rehder & Bielinska, 2016). As a result, their stores and values sales have continued to decline.
The e-retailing segment of Germany has continued to enjoy strong growth in recent years. As of 2015, the segment accounted for a value share of eight percent. It also had an increase of 13 percent in current value terms in 2015. The total e-commerce retail sales made in 2015 were $39.0 billion (Rehder & Bielinska, 2016). Although these sales are still low when compared to those of countries such as China and United States, which have enjoyed a greater embracement of e-commerce, this sector still had the fastest growth rate in the retail segment of the country. Additionally, it is worth noting that the retail and service sector is highly flexible in Germany. Due to the increase in internet connectivity and penetration in the country, customers are usually better informed when making both online and offline purchases. Due to strong e-commerce presence in the country, customers are able to switch retailers when not satisfied conveniently. According to Germany Trade and Invest (2017), 80 percent of shoppers said that they had switched to a competitor in both online and offline shopping due to dissatisfaction with service provision. This trend is especially high among millennials and Gen Z who are more tech-savvy. Also, the high demand levels in the country make people to be less loyal to brands since they switch to those that bring them the highest value-for-money.
Past and Future Trends
Due to the increased penetrability of internet and internet powered communication systems such as smartphones and tablets, there is going to be a continued increase in both online shopping, and online research before making a purchase. The latter trend is known as the ROPO effect, which is an acronym for ‘research online, purchase offline’. Due to this trend, retailers are developing both online and offline shopping platforms, which is referred to as multichannel retailing. This trend is especially popular among millennials who aim at maximizing the value of their purchases. According to Germany Trade and Invest (2017), 38 percent of German frequent online shoppers research products online before visiting the stores. Similarly, 27 percent of the country’s less frequent online shoppers also research online before visiting stores. Moreover, German online buyers are highly techno-savvy, and 14 percent of the regular online shoppers and 11 percent of the less regular online shoppers noting that they had used multiple sites (Germany Trade and Invest, 2017). In light of this, it is essential for Gluck Supermarkt to establish an online platform for its target clients.
Another significant development in the German retail market is going green. Currently, most buyers are increasing their awareness on the need of protecting their environment. These environmentally conscious individual are increasing their demand for products that are environmentally friendly. Germany Trade and Invest (2017) notes that 23.6 million individuals in the country are willing to pay more for environmentally friendly products. Consequently, the sale of environmentally friendly products enables a business to have a competitive advantage over its direct competitors.
Finally, there is a trend towards the use of supermarkets as the preferred convenience store in Germany. Currently, most Germans living in cities have been shifting to shopping into supermarkets since they are usually accessible (Rehder & Bielinska, 2016). Additionally, they offer a wide variety of products at affordable prices.
Attractiveness of the Supermarket Sub-Sector
The main attraction of Metro Cash & Carry into Glücks’ Supermarkt is its market sector. Currently, the supermarket subsector and the retail sector, in general, has been enjoying significant growth rate. Although the number of supermarket outlets in the country has decreased, their sales value has increased. In fact, the supermarket segment has recently been having the best returns regarding value in the retail sector (Rehder & Bielinska, 2016). In most cities, people prefer supermarkets due to their accessibility, and the provision of quick but high-quality services and products. Additionally, most of them have in recent years introduced many high-brand ranges, which are cheaper than branded products, and are perceived as having similar quality by consumers. As a result, most shoppers have embraced the private-labeled products offered by supermarkets (Rehder & Bielinska, 2016). Given the excellent performance of the supermarket sub-sector, the Glücks Supermarkt offers a huge potential to Metro Cash & Carry since it can become a major buyer in future.
Besides the high growth rate of supermarkets regarding value, Germany has many supermarkets, which provide a lot of professional customers for Metro Cash & Carry. As of 2016, there were about 16, 292 supermarkets and hypermarkets in Germany (Rehder & Bielinska, 2016). Apparently, these are many potential customers for Metro Cash & Carry. Additionally, the supermarket subsector has recently been enjoying the highest growth rate regarding value when compared to the other retail sectors (Rehder & Bielinska, 2016). In this regard, this sector has an even much bigger potential for Metro Cash & Carry in the future.
The retail sector in Germany is also boosted by the high-income levels of Germans. Germany has a huge population of 82 million individuals. Additionally, it is one of the wealthiest countries in Europe, and it also has the largest gross domestic product in the region. As of 2015, the average gross domestic product per capita for Germany was $47,268 (Rehder & Bielinska, 2016). In light of this, most Germans have a huge disposable income, which has enabled the country’s retail sector to continue excelling. In 2015, for example, the average consumer expenditure per capita was $21,043, which is expected to grow by 2.1 percent (Rehder & Bielinska, 2016). In light of this, the high purchasing power of Germans will enable the supermarket sector to continue growing in future. In effect, this indicates that Glücks Supermarkt has positive growth prospects, which effectively shows that the supermarket is a worthy client for Metro Cash & Carry.
The German retail sector is highly dependent on imports of essential items that are demanded by customers. In this regard, the market is accessible to the most efficient suppliers. Regarding value, most imports originate from European countries. The Netherlands contributes to almost fifty percent of food imports. Italy, Spain, and France provide 10 percent, 9 percent, and 8 percent respectively. Switzerland, United States, and Turkey are the largest non-European Union suppliers for the consumer-oriented agricultural products. Currently, Glücks Supermarkt obtains its items from both Germany and Netherlands. Therefore, for Metro Cash & Carry supermarket to have a maximum value from its relationship with Glücks Supermarkt, it must be able to consistently offer high-quality services, a wide variety of products, and at an affordable price.
Unlike hypermarkets, which sell huge volumes of products and usually make bulk purchases, supermarkets only make slightly huge purchases. Normally, supermarkets must avoid purchasing excess products, which can result in them not having fresh products on their shelves. Due to the need for small order quantities, Glücks Supermarkt has been having a challenge purchasing some of Metro Cash & Carry products since they are less than the minimum required volumes. Moving forward, Metro Cash & Carry should establish ways of efficiently supplying small volumes to supermarkets while still making reasonable profits.
Finally, Metro Cash & Carry must be able to offer environmentally friendly products as requested by customers. Currently, most German retail customers are conscious about their environment. As a result, they prefer environmentally friendly products to those made using or packaged in the non-environmentally friendly material. The German Trade and Invest (2017) notes that about 26.6 million Germans are willing to pay a premium for environmentally friendly products. Given this trend, supermarkets, Glücks Supermarkt included demand environmentally safe items, which they later sell to the final consumer. Therefore, Metro Cash & Carry can increase its presence among its professional customers by supplying environmentally safe products.
Customer Expectations and Fulfillment
Customer Business and Overall Range/Supply Chain
Glücks Supermarkt specializes in the sale of household consumer products. Currently, the supermarket has between 4000 and 5000 variety of items that it sells to its many clients. It also only has one branch that operates from Cologne. Regarding size, the supermarket is medium size and attracts many clients. It is important to note that the business specializes in the sale of Chinese consumer products, which it sells alongside consumer products that are non-Chinese.
Glücks Supermarkt gets its supplies from its many suppliers who are from Netherlands and Germany. Normally, the time that the supermarket takes before it places an order depends on the type of item and the season. For perishable goods, they have a short restocking period while the non-perishable items usually have a long time. The consumption rates of items vary depending on the season of the year, which affects the time the supermarket takes before making an order. For example, the volumes of JDB herbal tea consumed are usually higher during summer than in winter. In this case, the supermarket usually orders more packages in summer than in winter; therefore, this item has a shorter reorder time during the summers. Similarly, some items are consumed more in winter than in summer, which also affects their quantities and re-order days. On the overall, orders on some items are placed just after ten days while in others it is after 30 days depending on perishability of the item and the season of the year.
Concerning supply, the Glucks Supermarkt has between 15 and 20 suppliers from whom it makes purchases. The main determinant of the selected supplier is always his/her brand and the quality of items he/she delivers. If all suppliers have an equal score regarding brand and quality, Glucks Supermarkt then considers the price offered by each of them. Accordingly, it always selects the most affordable and convenient supplier. Currently, the company’s leading suppliers are Liroy, Oriental Merchant, and Asia Express Food. These suppliers deliver the company’s main supply items, which are food and beverages.
Customer Demand and Fulfillment
Glücks Supermarkt normally wants suppliers who can offer proper customer care service by quickly processing its order and delivering its items in time. Since the Glücks Supermarket does not make bulk purchases; therefore, it is essential for its suppliers to process its orders quickly to prevent the supermarket from having shortages. The Glücks Supermarkt also expects its suppliers to deliver their supplies to the supermarket. This customer care service relieves Glücks the burden of worrying how its purchases will arrive at its premises. Currently, its main suppliers, who are Liroy, Oriental Merchant, and Asia Express Food, always deliver their supplies to the supermarket.
Secondly, the Glücks Supermarket expects its suppliers to supply it with the right quantity of the items that it orders. The Glücks Supermarket is a medium sized supermarket. Therefore, it buys its items in small quantities of about 60 boxes of items from a supplier. When compared to major supermarkets, the Glücks Supermarkt’s order quantities are small since most bulk buyers purchase more than 100 boxes of each item. These low order quantities have made it unable to shop at Metro Cash & Carry. In this regard, Glücks Supermarket is interested in suppliers who can repackage their items into the small order quantities that it purchases.
Thirdly, the Glücks Supermarkt also expects its suppliers to price their commodities competitively. In this regard, the supermarket expects its supplier to sell their items to it at affordable prices. The suppliers can supply products to Gluck at discounted prices by offering it quantity discounts. Mainly, the Glücks Supermarkt is concerned on the profit margin it will make from each purchase. Therefore, the supermarket is usually attracted to a supplier who sells items at low prices. Currently, the supermarket is attracted by the low prices for items offered by Metro Cash & Carry. Unfortunately, it is unable to make an order of quantities required by Metro.
Fourthly, the Glücks Supermarkt also expects its suppliers to have a wide variety of items that they can supply. Currently, the supermarket has between 4000 and 5000 variety of items that it sells. Accordingly, a supplier must be able to deliver a wide range of items for Glücks Supermarkt. Metro Cash & Carry does not offer a lot of Chinese products, which among other reasons makes Glücks not to select it as its supplier. For example, of the ten most commonly purchased items at Glücks, Metro Cash & Carry currently does not make four of the items, which are spicy snack, spicy food, vinegar, and crispy snack.
Lastly, the Glücks Supermarkt is always concerned about the quality of items delivered to it by its suppliers, and also the brand of the supplier. In this case, the supermarket only purchases high-quality items from suppliers that have a reputable brand and are known for regularly supplying high-quality items. Metro Cash & Carry has a strong brand as a supplier of consumer products. It also supplies a huge variety of high-quality items.
10 Core Products Sold by Glucks Supermarkt
|10 Core products|
|Products||Specific Brand||Package Size||Demanded Price||Name||Place||Reason||Metro or not|
|1||Herbal Tea||加多宝 JDB Herbal Tea||310 ml||0.7||Liroy||Netherlands|
|2||Chilli Sauce||老干妈 LGM Pres. Black Beans in Chilli Oil||280 g||1.9||Liroy||Netherlands|
|3||Ramen||康师傅方便面 Master Cong Che f’s Table||129 g||0.7||Oriental Merchant||Netherlands|
|4||Spicy Snack||卫龙大面筋 Weilong Gluten Spicy Strips||106 g||0.9||傅氏 Fushi||Germany|
|5||Spicy Food||火锅冒菜 Instant Spicy Steampot||288 g||1.8||傅氏 Fushi||Germany|
|6||Beer||青岛啤酒 Tsingtao Beer||330 ml||0.8||Asia Express Food||Netherlands|
|7||White Rice||东北大米 Mali Flower White Rice||4500 g||8||Oriental Merchant||Netherlands|
|8||Instant Noodle||出前一丁Nissin Demae Ramen||100 g||0.45||Liroy||Netherlands|
|9||Vinegar||镇江香醋 Heng Shun Chinkiang Vinegar||550 ml||1||Oriental Merchant||Netherlands|
|10||Crispy Snack||小老板脆紫菜 Tao Kae Noi Crispy Seaweed||59 g||2.4||oriental Merchant||Netherlands|
Prices of Items Sold by Metro
|Product||Specific Brand||Package Size||Actual Price (Netto)||Prices of Glücks’ Suppliers (Equal Quantity)|
|1||Herbal Tea||Arizona||500 ml||0.82||1.13|
|2||Chilli Sauce||Sriracha Sehr Scharfe||455 ml||3.86||4.15|
|3||Ramen||Shin Ramyun||120 g||5.99||0.65|
|4 (Spicy Snack)||None|
|5 (Spicy Food)||None|
|7||White Rice||Basmati||5000 g||8.27||8.89|
|8||Instant Noodle||MAMA||55/60 g||0.57||0.2475|
|10 (Crispy Snack)||None|
The main suppliers of Glücks Supermarkt are Oriental Merchants, Liroy, Asia Express Food, and Fushi. Additionally, the supermarket always prefers its items to be symbolized in Chinese. In this case, all it ten most sold items in the supermarket have both Chinese and English labels. Another important aspect of the supermarket’s products is its packaging. It is notable that some of Gluck’s products are packaged in small quantities when compared to the sizes of similar items sold by Metro Cash & Carry. For example, JDB herbal tea is packaged in 330 ml whereas Metro’s Herbal tea is in 500 ml bottles. Glücks’ current chili source is 280 grams while that for Metro is 455 ml. The small packaging of these items, in turn, results in them being sold at a lower price per piece than that offered by Metro.
Some of Metro’s products are cheaper than those offered by Gluck’s suppliers, which gives it an opportunity of becoming one of its primary suppliers. For example, the evaluation of the prices charged at equal quantity shows that Metro’s herbal tea, chili sauce, and beer are cheaper than those currently supplied to Glücks’ by its current suppliers. However, Metro’s Ramen and noodles are more expensive than those offered by competitors.
Supplier Valuation (Industry Standard and Benchmark
Benchmark Offer (Core Category)
From an analysis of Glücks Supermarkt, it is clear that the supermarket is mostly interested in getting the right quantity of products at the most affordable rate, and being offered high customer care service. Additionally, it wants to be supplied with a wide variety of products. From the assessment of Glücks, Metro Cash & Carry can give the supermarket a benchmark offer of free delivery, discounts, repackaging of products into smaller volumes, discounts, the rebranding of items into appropriate Chinese names, and allowing the supermarket to purchase small quantities of each item.
First, Metro Cash and Carry can offer free delivery for all commodities that Glücks Supermarkt buys from it. Additionally, it can include a trade discount for the many items that Glücks purchases. This move will incentivize Glücks Supermarket, in turn, making it willing to purchase from Metro.
Secondly, Metro Cash & Carry should give Glücks an offer of purchasing items for small order quantities. Currently, Glücks Supermarket is willing to order some items from Metro due to its averagely low rates. Unfortunately, the requirement for customers to only make large bulk purchases makes Glücks unable to make an order. Therefore, Metro’s reduction of the required minimum order quantity will effectively enable Glücks Supermarkt to be one of its customers.
Thirdly, Metro Cash & Carry should offer its products to Glücks Supermarkt in Chinese labels. Glücks Supermarkt target customers are usually Chinese; therefore, the labeling of items in Chinese makes the buyers connect with the product. Additionally, these labels indicate that the manufacturers of the products embraces the Chinese culture. In light of this, the labeling of products sold by Metro Cash & Carry in Chinese will incentivize Glücks Supermarkt to buy these items.
Fourthly, Metro Cash & Carry should offer to supply Glücks various commodities in small packages. From an analysis of the ten most commonly purchased orders made by Glücks Supermarkt, it is clear that the business prefers items that are packaged in small volumes. The small packaging will enable Metro to supply Glücks Supermarkt with the type of items that it requires. Additionally, Metro should reduce the price of its expensive items so that Glücks can prefer purchasing from it instead of buying from competitors. As noted earlier, besides brand and quality, the cost of items sold by suppliers also influences Glücks Supermarkt purchasing decisions.
Benchmark Merchandising (Core Category)
Mali White Flower Rice From Oriental Merchant
Basmati Rice From Metro Cash & Carry
One of the primary consumer product that Metro Cash & Carry sells and is bought by Glücks Supermarket is rice. Currently, the company gets Mali Flower White rice from Oriental Merchants, which it sells at 8 Netto for 4.5 kgs. Metro Cash & Carry sells basmati rice in 5 kg packets at 8.27 netto. Therefore, the price per kilogram charged by Oriental Merchants is 1.778 netto, while Metro Cash & Carry charges 1.654 netto. Accordingly, Metro Cash & Carry rice is cheaper than that of Oriental Merchants.
The pricing architecture used by Oriental Merchant is very strategic. The use of small packets of 4.5kg instead of the 5 kilograms used by Metro Cash & Carry makes its rice to appear cheaper than that of Metro. Oriental sells its rice at 8 Netto while Metro Cash and Carry sells its rice at 8.27 Netto. In reality, however; Oriental’s rice is more expensive since it costs 1.778 netto per kilogram while Metro’s is just 1.654 netto.
Oriental Merchant presents its rice in a more visible manner than Metro Cash & Carry. Additionally, it uses a colorful package for its rice, which is essential when attracting customers, and the rice is properly arranged on its shelves. The packet of the Mali Flower White rice from Oriental Merchant is labeled in both Chinese and English. Accordingly, Chinese buyers can easily read the packet and know the item they are purchasing. Metro Cash & Carry, on the other hand, does not have a colorful package. Additionally, the rice is not properly arranged on the shelves to enable the customer to identify the product easily. More importantly, the package is only written in English, which makes it difficult for Chinese shoppers to identify the product being sold.
Glücks Supermarket is a small supermarket located in Cologne, Germany. The business specializes in the sale of Chinese household consumer products. Most of the products sold by Glücks are labelled in Chinese. Additionally, the company prefers items that are packaged in small quantities. It is worth noting that the small quantities of items in each package make the unit cost of each item. However, when analyzed in terms of price per kilogram or liter, the prices of these items may be in fact higher than those of products sold by Metro Cash and Carry. The small size of the supermarket also necessitates it to on make small orders of each item that it sells. In light of this, Metro Cash & Carry must do the following to make Glücks Supermarkt one of its customers:
- Metro Cash & Carry should introduce smaller packets for the products it will be selling to Glücks Supermarkt. From the analysis, it is clear that Glücks Supermarket prefers items that are in small packages to those that are in big packages. For example, the supermarket normally requests for the supply of JDB herbal tea of 310 ml and chili sauce of 280 grams. In comparison, Metro’s herbal tea is 500 ml, and its chili sauce is 455 ml. It is worth noting that the reduction in volumes of each unit sold will also result in a reduction in the products price. This low price will also be an incentive that will encourage Glücks Supermarkt to purchase its items from Metro Cash & Carry.
- Metro Cash & Carry should also add Chinese labels and wordings on the products that it intends to sell to Glücks Supermarkt. Currently, all of Metro’s products are written in English or German, which makes it difficult for Chinese consumers to know the items being sold. Since Glücks Supermarkt is a Chinese supermarket, it is appropriate for its products to be labeled in a language that can be easily read by its target customers.
- Metro Cash & Carry should also reduce its minimum order quantities and deliver these items to Glücks Supermarkt. Metro’s current high minimum order quantity makes it difficult for Glücks Supermarkt to order its items from it. A reduction in the minimum order quantity will enable Glücks Supermarkt and other small supermarkets to purchase their supplies from Metro. Additionally, Metro Cash & Carry should be ready deliver its orders to Glücks Supermarkt. Notably, Glücks’ always looks for suppliers who are willing to offer transport and give it discounts for its purchases.
- Metro Cash & Carry should increase the variety of Chinese merchandise that it can sell to Glücks Supermarkt. For example, the company does not sell four of the ten most popular items sold by Glücks, which includes Vinegar, an important ingredient in Chinese meals. The increase in these items will make Metro to be competitive when compared with some of Glücks Supermarkt suppliers who specialize in Chinese products.
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